What You Need to Know About A Business Owner’s Policy (BOP)

A business owner’s policy (BOP) can play an important role in your comprehensive risk management strategy when you decide to start your own dental practice. Explore how this coverage works and how it can protect what’s important to you.

What Is a Business Owner's Policy (BOP)?

A business owner’s policy is a type of insurance policy that bundles a number of important coverages into one policy. Examples of what it may include is property insurance, general liability insurance, employment practices liability insurance, and data breach insurance. A business owner’s policy may be customized in accordance with the practice owner’s unique needs in mind.

In the event of a covered incident that causes your dental practice to suffer a loss, such as a fire, a business owner’s insurance policy may help reimburse your practice for damages in order to get your practice up and running again. Covered items may include construction costs for your practice build-out and costs to replace equipment, and may help replace some of your lost income.

Key Considerations for a BOP

A BOP could make it easier for practices to recover financially after a damaging incident that results in financial loss. Without this coverage, your practice may have to absorb the associated costs. Depending on the size and success of your practice and the type and scale of the incident, those costs could have a minimal impact on your business. However, an incident could just as easily be devastating to your practice, potentially forcing you to close your office doors.

Understanding BOP Coverage

These are the basics of what can and can't be put on your BOP policy:

What Does Business Owner’s Policy Cover? 

Although every BOP is different, the following may commonly be included::

• The building used for the practice.
• Equipment owned by the practice.
• Computers, laptops, and mobile devices.
• Coverage for sensitive information (Data Breach).
• Coverage for employment-related issues (Employment Practices Liability).
• Practice income.
• Reimbursement for medical waste disposal expenses.
• Patient records.
• Accounts receivable.

What Are the Business Owner’s Policy Exclusions?

In some cases, claims that arise as a result of the provision of professional services, e.g. a medical malpractice lawsuit, may not be covered under your business owner’s insurance policy. Additionally, it’s not likely that your BOP will cover damages to patients that occur as a result of incomplete or inaccurate advice given. For these instances, it may be ideal to add malpractice insurance.

Do I Need a BOP?

A business owner’s policy must be considered by any practice owner(s) in order to help more easily recover from financial losses when the unexpected happens. Further, if you have obtained any type of financing for your practice, lenders typically require that you have a BOP.

Tailor Your BOP Insurance for Your Dental Practice

BOP coverage isn't a one-size-fits-all type of insurance policy. Rather, tailor the specific types of coverage based on your dental practice's unique needs. 

Policy limits for each type of coverage may be customized. Examples of this may include the cost to replace equipment destroyed in a covered loss and/or the cost of construction for your practice build-out.

Protecting Every Aspect of Your Dental Practice is Critical

It's hard to predict what may or may not happen to your dental practice; unforeseen events like severe weather, fire, employee accidents, and theft all occur when you least expect them. If you're unprepared, the damages you incur could be enough to bankrupt your practice. 

Make sure you have the coverage you need for all areas of your business by working with an experienced insurance advisor who can help tailor your business owner’s policy and other policies to support the individual needs of your practice.

For more tips around starting and growing your dental practice — including insurance information, hiring tips, and more — download our complimentary guide, “Starting a New Dental Practice.”

About Treloar & Heisel

Treloar & Heisel, an EPIC Company, is a premier financial services provider to dental and medical professionals across the country. We assist thousands of clients from residency to practice and through retirement with a comprehensive suite of financial services, custom-tailored advice, and a strong national network focused on delivering the highest level of service.