Business Owner's Policy

by Steve Wilson

What Is a BOP?

If you operate a small- to medium-sized, low-risk business, you may be eligible for commercial liability insurance coverage through an affordable property and general liability package policy called a Business Owner’s Policy, or BOP.

A BOP insurance package for small businesses is a single commercial insurance policy that combines property insurance with commercial general liability insurance coverage. For many small but expanding companies, buying a BOP to secure general liability insurance coverage is an affordable way to secure small business commercial liability insurance coverage.

Business insurance package policy

A Business Owner’s Policy includes:

  • General liability insurance to cover your commercial liability, and
  • Property insurance for physical assets, such as contents, that are leased or owned

A BOP insurance package policy might also cover the loss of business income and extra expenses caused by an insured peril.

In general, a business owner’s insurance package policy insures damaged or lost property for its replacement value. That means that in the event of a claim, you’ll receive a large enough settlement to replace the property, without any deduction for depreciation. A BOP’s property insurance also covers other people’s personal property, if you as a business owner are legally liable for damage to it.

General liability insurance

A BOP’s general liability insurance coverage is comparable to a typical commercial general liability insurance coverage (CGL) policy, in that it protects your business against claims of bodily injury or property damage. A BOP’s general liability coverage also provides business liability insurance coverage to pay the cost of:

  • A legal defense in a lawsuit arising from an accident that causes bodily injury
  • Property damage
  • Claims such as libel, slander and false advertising – even if those claims are meritless

General liability insurance does not protect your business in the event that a client accuses you of professional errors or negligence. Those types of claims are normally covered by a professional liability insurance policy.

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