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Business Owners Policy (BOP)

Business Owners Policy Information

Custom Solutions for Small Business

The business owners policy is a prepackaged policy designed to fit the needs of the small to medium business. Instead of selecting individual coverages, the insurance company offers a package of coverages, which includes property and liability. The insured usually cannot elect to exclude coverage that is automatically provided in the coverage. If your business does not meet the criteria for a BOP or need higher coverage limits, then a commercial package policy may be an option that offers for broad coverage for a wider range of businesses and needs.

Advantages of a prepackaged policy

The following are some advantages of a prepackaged policy:

  • Property and liability coverage is included in a single, predesigned package
  • The options most needed by small business owners are included or available for a small additional premium
  • The rates for the entire package are extremely favorable because of the eligible types of risks usually have a lower potential for loss.

Typical businesses eligible for a BOP

Not all businesses can be insured under a business owners policy. These types of businesses primarily conduct business on their premises and do not have a large products or completed  operations exposure. Typical businesses that are eligible for a BOP include:

  • Office building
  • Apartments and residential or commercial condominiums
  • Mercantile, processing and service establishments
  • Contractors (carpenters, electricians, painters, or plumbers)
  • Fast-food or limited cooking restaurants
  • Convenience stores

Typical businesses ineligible for a BOP

Businesses that are typically ineligible include the following:

  • Automobile sales and servicing operations
  • Household personal property and 1- or 2- family dwellings
  • Manufacturing operations
  • Places of amusement
  • Bars and grills
  • Financial institutions 
  • Certain types of contractors and self-storage facilities

What's Covered with a Typical BOP?

BOPs typically include: 

  1. Property insurance for buildings and contents owned by the company -- there are two different forms, standard and special, which provides more comprehensive coverage.
  2. Business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.
  3. Liability protection, which covers your company's legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.

In most cases, BOPs do NOT cover professional liability, auto insurance, worker’s compensation or health and disability insurance. You'll need separate insurance policies to cover professional services, vehicles and your employees. 

Pepe Insurance Agency will help you find the right business owners policy for your insurance needs. We will search through the many options available to find what fits you best. Give us a call or request a business owners quote today!





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