The BOP is beneficial for small businesses in low-risk industries. Examples of eligible companies include retail stores, small restaurants, offices like accountants and law firms, or health care providers.
Standard insurance companies’ eligibility rules and guidelines can be very different and hardly ever follow the same criteria, some of which are:
Industry type- low risk only, no check cashing store, no convenience store and gas station, no or fire alarm installation company.
Annual Revenue: Businesses making over $5 million are generally not eligible.
Size of the primary location: Large facilities, such as warehouses and factories, are not eligible.
The number of employees: The BOP targets small business owners, so employers with more than 50 employees are generally ineligible.
Property values: Many BOP insurers may limit the insured building or content values, they could be capped at $1M, $3M or $5M. The location plays a big role, with exposures to hurricane, earthquake and wildfires.
Retail stores with fewer than ten employees are considered low-risk and may use a BOP to insure their operations. Small restaurants or franchises with fewer than 20 employees may also qualify.