What is a Business Owners Policy?
A Business Owners Policy, often referred to as a “BOP,” provides both property damage and liability coverage specifically designed for smaller businesses. These protections cover offices, apartments, mercantile, service and processing businesses. Some qualifiers that determine a small or medium-sized business are the number of employees, annual gross sales or the square footage of a building.
What Coverages Do Business Owners Policies Provide?
As mentioned, there are two types of coverage offered by a Business Owners policy; Property Damage and Liability protection.
- Property Coverage, protects exposure to a building as well as business property. However, there are over a dozen of additional coverage options that can be added to the property section of the Business Owners policy. The most common add on coverage types are Business Income/Business Interruption Coverage or Equipment Breakdown.
- Liability Coverage, is designed to cover expenses resulting from injury at a business or by using a business’ product or service. Coverage is also provided for product liability and medical payments among other protections included.
There are several endorsements that can be purchased to enhance a BOP policy, such as Spoilage, Utility Services, and Hired and Non-Hired Auto coverage among others. There are also Umbrella and Excess Lines policies that can increase coverage of an underlying BOP policy.
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