A BOP (business owner’s policy) is a bundled package which provides liability insurance and property damage coverage through the same policy. If one wants to protect their business’s physical and financial assets then BOP is perhaps the most conducive policy.

What is included in BOPs?

  1. The buildings, equipment and inventory owned by a company are covered under property insurance, which is provided through two different packages, standard and special; where the latter is a more comprehensive coverage of the same offering.
  2. The lost incomes caused due to evens such as fires and other catastrophic disruptions which interrupt the business operations are covered under the Business interruption insurance. This insurance also covers the additional expenses imposed on a business due to operating out of a temporary location.
  3. The damage incurred to the equipment of a business due to events such as power surges, mechanical breakdowns, burnouts and operation errors is covered under the Equipment breakdown insurance.
  4. Sometimes a business and its employees can fail to address aspects in the business operations and this can lead to defective products, faulty installations and errors in providing services. These things could potentially lead to bodily injury or property damage. The harm caused by these is insured through Liability protection; which covers a company’s legal responsibility and also personal and advertising injury (which includes covers for copyright infringement, libel and slander).
  5. Medical related expenses which may arise as a result of injury to others on the property the business operates from are covered under Medical Payments Coverage.
  6. The liability coverage for automobiles that a business may lease, hire or borrow is insured under Rented Vehicle Coverage.

Note: Professional liability, auto insurance, worker’s compensation, and health and disability insurance are not covered under BOPs. A separate insurance policy is required to cover for these aspects of a business.