A Business Owners Policy (BOP) is a package policy that typically combines general liability and property insurance, along with other optional coverage, for small- to medium-sized businesses in lower risk business classes. A BOP may be available depending on the type of business, annual sales, number of employees and other factors.
General liability covers your commercial liability and property insurance for physical assets, such as contents that are leased or owned. The package insurance policy may also cover loss of business income and extra expenses resulting from a covered loss. The general liability insurance coverage of a BOP is comparable to a typical commercial general liability (CGL) policy, and provides protection against claims of bodily injury or property damage for which your business may be liable.
The general liability portion typically provides liability insurance for the cost of defending lawsuits stemming from:
- Accidents that cause bodily injury and/or property damage
- Claims such as libel and slander
- False advertising
* General liability insurance does not cover errors or negligence from professional services.
A BOP policy may include, or you may be able to select as an option:
- Outdoor sign insurance
- Money and securities insurance
- Employee dishonesty insurance
- Water back-up insurance
Not all businesses are eligible for a BOP policy. If your business has any of the following characteristics you may not be eligible for a BOP. But don't worry, we can assist you with obtaining other forms of commercial insurance. Characteristics typically not eligible for a BOP policy include:
- Large premises operations
- High-risk or highly specialized operations
- Majority of business conducted off-premise
- Requires liability limits higher than offered with a BOP
Typically a BOP policy is very competitively priced, but remember the BOP does not provide coverage to items such as workers' compensation, professional liability exposures or commercial auto insurance.