Business Owner Policy (BOP)
By Investopedia Staff
What is 'Business Owner Policy (BOP)'A business owner policy (BOP) combines protection for all major property and liability risks in one package. This type of policy assembles the basic coverages required by a business owner in one bundle. It is usually sold at a premium that is less than the total cost of the individual coverages. BOPs are usually targeted at small and medium-sized businesses. They typically contain business interruption insurance, which provides reimbursement for up to a year of lost revenue resulting from an insured loss.
BREAKING DOWN 'Business Owner Policy (BOP)'Specific coverages included in a BOP varies among insurance providers, but most policies require businesses to meet certain eligibility criteria to qualify. A typical BOP policy includes...
Optional Business Owner Policy CoveragesA business owner policy might also include crime insurance, vehicle coverage, and flood insurance. Depending on a business' individual situation, the business owner and the insurance company may make arrangements for additional coverage components. Some of these might include certain crimes, spoilage of merchandise, computer equipment, mechanical breakdown, forgery and fidelity bond, but the coverage limits for these inclusions are typically low.
A BOP typically does not cover professional liability, worker’s compensation, health or disability insurance. These items would require separate policies.