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

A business owner’s policy (BOP) is a combination policy that combines the coverages offered in both business liability coverage and commercial property insurance. Property coverage accounts for losses or damage to business-owned assets that are housed on the physical location of the business in addition to the structure itself and exterior elements such as the sign or fencing. Business liability deals with the general exposures of situations involving personal injury or property damage to third parties, as well as advertising injuries. Covered incidents with business owner’s policies (BOPs) include claims that may arise from theft, fire, or included disasters. This bundled policy can also be extended to provide additional coverages. BOPs are usually written for small to mid-sized clients.

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When do I need to be aware of a business owner’s policy (BOP)?

Those who own a business and want to provide comprehensive coverage for common liabilities should consider a business owner’s policy (BOP). The plan would provide the financial resources needed to settle claims of customer injuries, damaged inventory following a fire, or theft of company property.

What is important to know about business owner’s policies (BOPs)?

This policy is an effective way to address several exposures, as plans can be customized to the specific industry or operations of the business. It simplifies insurance coverage without sacrificing protection.

Data breaches, business income, and professional liability are optional extensions of coverage.
The property protections are generally extended to business sites that are leased, rented, or owned, and well as assets falling under these categories.
Liability coverage includes defense and/or settlement costs in the event the business is sued.