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Business Owners' policy

Business Owners’ Policy is a package policy specifically designed to meet the basic property and liability insurance needs of smaller business firms in one contract. Business Owner's Policy or BOP combines commercial property and commercial liability insurance into a single policy. BOP insurance protects a company from claims occurring from events such as fire, theft, or other insured occurrences.

Business owner’s insurance also helps cover claims that may emerge as a result of your company's operations including personal injury and property damage claims. This policy, primarily, targets small and medium-sized businesses. Property, business interruption, and liability insurance are common examples. However, in order to qualify, most policies need firms to meet certain qualifying conditions.

Such policies can be tailored to the needs of certain industries. This means it's ideal for businesses of all sizes, particularly small ones. Crime, car and flood insurance may also be included in a company owner’s policy. Based on the particular circumstances of a business, the owner and the insurance carrier may establish arrangements for additional coverage components. 

Particular crimes, destruction of commodities, computer equipment, mechanical breakdowns, forgeries, and fidelity bonds include in these policies as well, however, the coverage limitations for these categories are often minimal.


Use of the Term in Sentences

  • Professional liability, worker's compensation, health, and disability insurance are not covered under a business owner’s policy.
  • All businesses do not have a business owner's policy


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