What is a Business Owner’s Policy (BOP)?

Combination of Coverages:

• A BOP bundles multiple essential coverages into one policy. The most common coverages include property insurance, general liability insurance, and business interruption insurance.

• Target Market:

  • BOPs are typically tailored for small to medium-sized businesses that meet certain criteria, such as size, industry, and revenue. They are ideal for businesses like retail stores, restaurants, offices, and small manufacturing companies.

Core Coverages in a BOP:

• Property Insurance:

  • Covers physical assets owned by the business, including buildings, equipment, furniture, inventory, and other property. It typically includes coverage for fire, theft, vandalism, and certain natural disasters.

  • Building Coverage: Protects the physical structure of the business premises, whether owned or leased.

  • Contents Coverage: Protects the contents within the business premises, such as equipment, inventory, and furniture.

• General Liability Insurance:

  • Provides coverage for legal liability arising from accidents, injuries, or claims of negligence that occur on the business’s premises or as a result of its operations. This includes:

    • Bodily Injury: Covers medical expenses and legal fees if a customer or third party is injured on the business premises.

    • Property Damage: Covers damages to another person’s property caused by the business’s operations or employees.

    • Personal and Advertising Injury: Protects against claims related to libel, slander, or advertising practices that harm another person or business.

• Business Interruption Insurance:

  • Also known as business income insurance, this coverage compensates for lost income and operating expenses if the business is forced to temporarily close due to a covered event, such as a fire or natural disaster. It helps cover ongoing expenses like rent, payroll, and utilities during the interruption period.