Business Owner Policy (BOP)

If you own a small business, then you probably need a Business Owners Policy, otherwise referred to as a BOP, or BOP insurance.

Instead of buying a number of individual policies such as Commercial Property or General Liability, a Business Owners Policy is designed to provide these and other coverages you might need in a convenient package.

Typically, a BOP includes the following coverages:

• Property insurance (covering buildings, equipment and inventory).
• Business interruption insurance (covering losses that cause you to shut operations or reduce production for a time). Business interruption insurance can provide money to offset lost profits or to pay continuing expenses (typically for up to a year for insured losses).
• Casualty or liability protection (covering harm done by the employees or products to other people or their property).
• Crime insurance (covering loss of money or securities resulting from burglaries or robberies or destruction) as well as losses from employee theft or embezzlement.
• Liability insurance covering lawsuits arising from accidents (as when someone trips and falls on your business’s property) or when you sell a product that damages the customer’s property.

A Business Owner Policy typically does not cover professional liability, auto insurance, workers’ compensation, health, or disability insurances. You will need separate insurance policies to cover these exposures.