What Does A Businessowners
Policy (BOP) Cover?

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What does a businessowners policy (BOP) cover? A business owner's policy combines important insurance coverages like commercial property, general liability and business income in one packaged policy.

What Does A Businessowners Policy (BOP) Cover?

What Does A Businessowners Policy (BOP) Cover?

If you're thinking about starting your own business, there are a lot of things you are going to need to get into place in order to set yourself up for success. Of all these things, insurance is one of the most important.

Commercial insurance protects your business from the various risks that exist. There are several types of policies available. Of these options, commercial liability and commercial property insurance are the most important.

Instead of carrying individual policies for each of these types of coverages, you might want to consider a Businessowners Policy, which combines both commercial liability and commercial property insurance into one policy. But what does a businessowners policy (BOP) cover?

Business Owners Policy Explained

Business Owners Insurance Package Policy

A Businessowners Policy (often simply referred to as a BOP), is an insurance policy that combines commercial property and commercial liability insurance coverage into a single policy. It safeguards your business from various risks, such as theft, fire, third party bodily injuries, advertising injuries, and other types of disasters that could impact the operations of your organization.

This type of policy can also be customized to meet the specific needs of your business by including coverages that are considered optional, such as business income, data breach, and accounts receivable coverage.

So what does a businessowners policy (BOP) cover? When determining which type of coverages you should include in your policy, consider the specific types of risks that are associated with your business. Also, keep in mind that some types of coverages aren't permitted with a BOP policy, such as commercial auto and worker's compensation insurance.

What Benefits Does A Businessowners Policy Offer?

For many small business owners, a BOP is an easy and convenient option. Since it combines different types of coverages, such as commercial liability and commercial property insurance (two coverages that most businesses are generally required to carry), as well as other coverage options into one policy, it really simplifies your business insurance needs. What does a businessowners policy (BOP) cover?

You won't have to deal with the hassle of finding and maintaining separate policies. Plus, it can be a much more affordable.

Who Should Consider a Businessowners Policy?

If any of the following apply to your business, a BOP could be in your best interest:

What Does a Businessowners Policy Cover?

The coverages provided by a BOP will vary depending on the insurance provider you are working with and the coverage options you incorporate into the policy. Generally speaking, though, a BOP includes commercial property and commercial general liability insurance.

As mentioned, you can add different types of optional coverages to a Businessowners Policy. For example, if you include accounts receivable into your policy, you will be protected from any losses that are associated with invoices that haven't been paid. Following are some of the coverages you can add:

Which Type of Coverage Options Do You Need?

In addition to the commercial property and commercial general liability coverage that is offered under a BOP, you might want to consider adding in additional coverage options. To determine which coverages would be the most beneficial for you, consider the specific needs of your business. Also, keep in mind that not all coverage options can be added to a BOP. To determine your best options and find out what types of coverages can be added to a BOP, speak to an broker that specializes in Businessowners Policy insurance.

What Does A Businessowners Policy (BOP) Cover? - The Bottom Line

We hope this article on What does a businessowners policy (BOP) cover? has been informative. There are a lot of risks that are associated with operating a small business. To protect your business and yourself, it's important to carry the right type of insurance. A BOP can help to simplify your insurance needs and even make them more affordable.

Understanding The ISO Businessowners Coverage Form

Businessowners Coverage Form

You need coverage for all of your property and casualty exposures, not just some. Wouldn't it be great if you could get most or all of them in just one coverage form? It is possible...

If you qualify, the Insurance Services Office (ISO) Businessowners Coverage Form may be exactly what you're looking for.

This single package covers your buildings and business personal property, as well as liability imposed on you because of your premises, operations and products. In addition, it has numerous coverage extensions and optional coverages available.

Consult the policy for definitions and limitations. The information below does not represent contract terms. The policy is subject to company underwriting practices.

COVERED BUILDING PROPERTY

Buildings can be more than just a single building. The structure listed and described that has a limit of insurance on the declarations is covered, along with the following:

COVERED BUSINESS PERSONAL PROPERTY

Business personal property is more than just the contents of a building. The following business personal property is covered when a limit of insurance appears on the declarations and when it is in the described building and within 100 feet of the premises or building while in the open or in or on a vehicle:

PROPERTY NOT COVERED

The following property is excluded. In some cases, it can be covered under other coverage forms or policies:

COVERED CAUSES OF LOSS

Coverage applies to direct physical loss, unless the loss is subject to a limitation or is excluded. Exclusions and limitations can significantly affect the coverage provided and should be reviewed carefully.

ADDITIONAL COVERAGES

These additional coverages apply for specific limits of insurance and are subject to certain exclusions, exceptions, conditions, and restrictions:

COVERAGE EXTENSIONS

These coverage extensions are for additional amounts of insurance:

OPTIONAL COVERAGES
PROPERTY LOSS CONDITIONS

Loss Conditions explain the obligations you owe the insurance company and the ones it owes you when a covered loss occurs:

BUSINESS LIABILITY COVERAGE
EXCLUSIONS

Every insurance coverage form or policy has exclusions and limitations. This is because only specific types of businesses need the coverage or the exposure to loss is such that it is not considered insurable. They can significantly affect coverage and should be reviewed carefully.

ENDORSEMENTS

The Businessowners Coverage Form provides very broad coverage. Many endorsements are available to use with it that broaden, limit, or exclude coverage.

Further Reading On The Businessowners Policy

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