The Business Owner Policy (also called BOP), was first developed in the 1970′s. A BOP has been likened to a homeowner’s policy for small to medium sized businesses. The BOP basically consists of property coverage for the business, liability coverage (in case you are sued), and some additional types of coverage that a business may require.
Property coverage – includes covering a building, equipment and inventory.
Business interruption insurance – can provide money to offset lost profits or to pay continuing expenses.
Liability protection – covering harm done by the employees or products to other people or their property.
Crime insurance – covers loss of money or securities resulting from burglaries or robberies or even destruction, employee theft or embezzlement. Liability insurance – covers lawsuits arising from accidents or when you sell a product that damages the customer’s property, or even slander, copyright or invasion of privacy.
Vehicles – covered for rented or borrowed vehicles.
Exclusions – typically include floods, earthquakes, worker’s compensation, or business owned vehicle coverage.
Ask your agent about obtaining all these coverage in a package instead of buying individually. Often you can save money buying in a bundle versus buying coverage separately.