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?

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.

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.

General Liability Insurance. In regard to liability coverage, the broader it is the better. The general liability insurance a business owner's policy offers covers a business should it be sued for damaging someone else's property or for causing harm to another person. It also assists with the cost of legal fees that you may incur.

Commercial Property Insurance. A business owner's policy can also protect your business' property, whether that property is owned, rented or leased. It covers various things, such as the building, the furniture, the inventory, the equipment, and the fixtures within the business. There are two different forms of commercial property coverage in a BOP; standard and special (which provides more comprehensive coverage). It also offers coverage should any accounts receivable and important documents be lost.

Business income insurance. Should some unforeseen circumstance arise that will that cause the operations of your business to be suspended, the business income insurance offered in a BOP can help to replace your lost income in order to assist you with meeting any financial obligations you may have that cannot be put off, such as paying your employees or your rent. It can also include the extra expenses of operating out of a temporary location.

As mentioned, you can add other coverage to a BOP to ensure your business has the protection that it needed. Following are some additional coverage options that businesses often opt to add to a business owners policy:

What Business Owners Policy Doesn't Cover

BOPs typically do not cover:

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.

Who Should Consider a Businessowners Policy?

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

How Much Does A Business Owners Policy Cost?

How much does a business owners policy cost? The premiums vary depending on the amount of risk exposure, and it depends on the endorsements and deductible selected. Following are some of the main factors that go into the price of a policy:

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.


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:


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:


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


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.


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


These coverage extensions are for additional amounts of insurance:


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


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.


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

If you are looking for state specific Business Owners Policy insurance quotes, costs and information: California Business Owners Policy, Colorado Business Owners Policy, Delaware Business Owners Policy, Florida Business Owners Policy, Illinois Business Owners Policy, Kentucky Business Owners Policy, New Jersey Business Owners Policy, New York Business Owners Policy, Oregon Business Owners Policy, Pennsylvania Business Owners Policy, Texas Business Owners Policy, Washington Business Owners Policy.

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