Who is eligible for a BOP?

Complete Guide to BOP Eligibility

Why This Question Matters for Colorado and Utah Residents

Choosing the right insurance package is crucial for local businesses facing Colorado and Utah’s unique risks—hail, wildfires, floods, and fast-growing economies. Understanding eligibility ensures you secure both property and liability protection, which can make the difference between a quick recovery and a devastating loss.

• Weather Risks: Colorado ranks #2 nationally for hail claims, and Utah businesses face wildfire and flooding threats. BOPs are often tailored for these risks if you’re eligible.
• Industry Standards: Most local small business owners—retailers, restaurants, professional offices—can qualify, but high-risk or specialized industries may need different coverage types.
• Cost Efficiency: The average BOP premium in Colorado and Utah is around $67/month ($800/year). Combining coverages can save significantly over separate policies—if you meet the criteria.

What Most People Get Wrong

Common misconception: Many assume any business can get a BOP. In reality, eligibility depends on size, annual revenue, employee count, and industry risk level. Colorado and Utah regulations require clear disclosures for excluded risks like flood, and some claims (like wildfire or hail) have specific processing timelines and deductible structures.

Extra detail: Flood coverage, for example, is explicitly excluded from standard BOPs—separate policies are required in flood-prone neighborhoods, especially post-wildfire in the Rockies and Wasatch Front.

The Complete Picture

Typically, businesses eligible for a BOP in Colorado and Utah meet these criteria:

• Fewer than 100 employees and annual revenue under $5 million
• Operate from a physical location (retail, office, restaurant, service shops, etc.)
• Low-to-moderate industry risk (not high-hazard manufacturing, large contractors, or large event venues)
• Solid safety and claims history

Bakeries in Fort Collins, restaurants in Denver, yoga studios in Salt Lake City, and tech startups with office footprints are all common BOP candidates. If you own the building, lease space, or hold inventory, a BOP could be a smart fit. Independent agents—chosen by 78% of local businesses—can compare multiple options to match your business, making sure you’re not over- or under-insured and get compliant, locally relevant coverage.

Note: Colorado’s Division of Insurance mandates claim responses within 60 days, and all policies must explicitly state if certain perils (like flood) are excluded. Always review your eligibility with a knowledgeable agent who understands local rules and market realities.

Making the Right Decision for Colorado and Utah Residents

Question 1: Does your business fit the local BOP profile?

Think about these key factors:

• Do you have fewer than 100 employees and under $5M in revenue?
• Is your business retail, food service, office-based, or light manufacturing?
• Do you face common CO/UT risks like hail, wildfires, or localized flooding?

Question 2: What assets and risks need protection?

Catalogue your business’s physical property (building, inventory, equipment), customer-facing operations, and interruption risks. BOPs work best for businesses with tangible assets and customer foot traffic—a bakery in Old Town Fort Collins or a yoga studio in Salt Lake City, for example.

Question 3: Are there regional requirements or exclusions?

Check for CO/UT-specific requirements—claims must be paid within 60 days in Colorado; flood insurance is always a separate policy. Local independent advisors can guide you on compliance and optimal coverage for your business footprint.