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Commercial - Business Owners' Package (BOP)

What is a Business Owners' Insurance (BOP) policy ?

 A Business Owners' Package (BOP) policy combines several types of coverage into one package tailored to the needs of small and medium-sized businesses. It is designed to be a more affordable and convenient way to obtain the protection you need without having to purchase separate policies for each risk. 

 

The BOP package usually includes three key insurance policies:

1. Property Insurance:

  • Covers physical assets like your business location, equipment, inventory, and furniture from risks like fire, vandalism, theft, or natural disasters (such as storms or earthquakes, depending on your policy).

  • If your business property is damaged or destroyed, property insurance helps cover the cost to repair or replace it.

2. General Liability Insurance:

  • Protects against third-party claims for bodily injury, property damage, or personal injury that occur on your premises or due to your business operations.

  • This covers things like customers who slip and fall, or if your business causes property damage to someone else's property.

3. Business Interruption Insurance (also called Business Income Insurance):

  • Covers lost income if your business is forced to shut down due to a covered event (like a fire or a natural disaster) that disrupts operations.

  • It can help pay for ongoing expenses, like rent or employee salaries, even if you’re not able to operate. 


A BOP can be customized with optional add-ons, depending on the needs of your business. These can include:

  • Cyber Liability Insurance (for businesses that handle sensitive data)
  • Commercial Auto Insurance (if your business uses vehicles)
  • Professional Liability Insurance (for businesses that offer advice or professional services)
  • Employee Benefits Insurance (like health or disability insurance for employees)


While a BOP offers great all-around coverage, it doesn’t cover everything. Common exclusions include:

  • Employee Injuries: Workers' compensation is usually sold separately and isn’t included in a BOP.
  • Professional Errors: If you provide professional advice or services (like a lawyer or accountant), you might need professional liability insurance (also called errors & omissions coverage).
  • Flood and Earthquake Damage: Some BOPs exclude natural disasters like floods or earthquakes, so you may need a separate policy for those.
  • Vehicle Coverage: If your business uses vehicles, you’ll need commercial auto insurance, which isn’t typically included in a BOP.

 

BOP is ideal for businesses that meet the following requirements:

  • Have relatively low risk (in terms of property damage or liability).
  • Do not have complex or specialized insurance needs.
  • Have fewer employees (as BOP is typically aimed at small businesses).

 

Examples of businesses eligible for BOP:

  • Retail stores
  • Small offices (e.g., real estate agents, insurance brokers)
  • Restaurants (depending on size)
  • Contractors (with specific benefits)