What is the primary coverage provided by a Business Owners Policy (BOP)?

A Business Owners Policy (BOP) is specifically designed to provide a combination of property and liability coverage tailored for small to medium-sized businesses. This type of policy consolidates essential coverages into a single package, which enhances convenience and cost savings for business owners.

The property coverage component protects the physical assets of the business, including buildings, equipment, inventory, and sometimes even business interruption if operations are halted due to a covered loss. On the liability side, it covers claims made against the business for bodily injury, property damage, and personal injury due to business operations, ensuring the business is protected from various lawsuits and claims.

This integrated approach is particularly beneficial for small to medium-sized businesses that may not have the resources to secure multiple separate policies for different types of coverage. By offering both property and liability protection in a unified policy, a BOP can simplify the insurance process for business owners while ensuring they have essential coverage in place.