What does a Business Owners Policy (BOP) cover?

September 12, 2012

What is a Business Owners Policy?

Photo Credit: Dwonderwall (Creative Commons)

A Business Owners Policy (BOP) is a business insurance policy that combines coverage for all major property and liability risks a business may face in one package.

Most Business Owners Policies are purchased by small- to mid-sized businesses that face a generalized kind and degree of risk. Larger businesses often purchase customized insurance packages or commercial package policies to cover risks associated with their respective industries.

A Business Owners Policy includes:

  • Property Insurance—coverage for buildings and contents owned by the business.
  • Business Interruption Insurance—coverage for loss of income due to fire or other disastrous event that interrupts business operations.
  • Liability Protection—coverage for bodily injury or property damage your business may cause others due to defective products, errors in service, etc.

A Business Owners Policy DOES NOT include:

  • Professional Liability Insurance—coverage against financial losses from lawsuits filed against you by clients.
  • Business Auto Insurance—auto insurance coverage for vehicles used for business-related activities.
  • Workers’ Compensation Insurance—coverage for medical care and compensation for lost income for employees who are injured on the job.
  • Health Insurance—employer-sponsored coverage for business owners, employees, and often for dependents.

You will need to purchase separate business insurance policies for these types of coverage.

If you own a small- to mid-sized business in Ohio or Kentucky and would like to discuss the advantages and disadvantages of purchasing a Business Owners Policy in our area, contact Burkhart Insurance Agency. We’ll help you weigh your options and choose a policy that’s right for you.

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