Business Owners Policy
A standard business owner's policy (BOP) offers businesses an insurance policy which combines protection for all major property and liability risks in one package. Originally designed for small businesses, today are available for a broader range of businesses covering most major industries and professions. The BOP package policies are created for businesses that generally face the same kind and degree of risk. Larger companies might purchase a commercial package policy or customize their policies to meet the special risks they face. The BOP policies do not include commercial auto, disability, health, life, professional liability or workers compensation insurance. An insurance professional can provide separate insurance policies to cover these other business exposures.
A BOP policy consists of:
- Property insurance for buildings and contents owned by the company. The two different forms are standard or special, which provides more comprehensive coverage.
- Business interruption insurance which will cover the loss of income resulting from a catastrophe interruption of the businesses operations. Also extra expense of operating out of a temporary location can be included.
- General Liability protection will cover your company's legal responsibility for the harm it may cause to others. The harm can be a result of things that you and your employees do or fail to do within your businesses operations which could cause bodily injury or property damage due to defective products, faulty installations and errors in providing service.
Special Note: This summary outlines in general terms the coverages afforded under some policies. Examine the policy carefully for any exclusions, limitations, or any other terms or conditions that may specifically affect coverage. The terms and conditions of the policy prevail.