Business Owners Policy (BOP)

A Business owners Policy (BOP) is a policy offering protection from all major property and liability risks in a single bundled coverage form.  These policies are available for eligible small businesses that generally face the same exposure to and degree of risk.  BOPs are typically written on special coverage form, providing comprehensive property and liability coverage.  Further, BOPs have unique features that make them especially advantageous for businesses that qualify.

 

Types of coverages

  • Property insurance provides protection for not just the building, but also for the contents, for items like office furniture, machinery, computers, inventory and many more items which are imperative for the operation of the business.
  • Business interruption insurance, also known as business income insurance, covers the loss of income when a business is forced to shut down after a covered loss. This coverage includes loss of revenue, as well as extra expenses if the business has to operate out of a temporary location.
  • Liability insurance protects the business from their legal responsibility for harm it may have caused to others. Individuals may allege that your business caused them harm because of a defective product, for example, or a mistake in service, or disregarding a person’s property.  They many claim that your business created an environment which was hazardous.  Liability coverage will pay, up to the policy limits, for damages where the business was found liable.  Additionally, this coverage allows for payment of attorneys’ fees and other legal expenses in defending the business.

 

Business owners Policies do NOT cover auto insurance, worker’s compensation, health, disability or professional liability.  A separate policy will need to be obtained to cover these exposures.

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