A business owner’s policy (BOP) combines property and liability insurance by packaging these coverages into a single insurance policy. BOP insurance helps cover claims of bodily injury or property damage and is often a good choice for small and medium-sized businesses, such as restaurants, wholesalers or retail shops.
The 2 main coverages provided in a BOP are liability and property coverages.
Liability:
- Product-related claims
- Customer injury
- Advertising injury
Property:
- Commercial buildings
- Movable property
- Debris Removal
- Loss of income and pollution cleanup as part of a covered loss
- Policy endorsements that can extend coverage to cover exclusions
Business owner policy examples
- Bodily injury or property damage liability (e.g., you spill water on a client’s computer causing damage)
- Defense costs for covered liability losses (e.g., libel and slander)
- Protection for business furniture and equipment (e.g., chairs, desks, and computers)