The business owner’s policy (BOP) is a simple package insurance policy designed for small business. Insurers usually limit the use of this policy form to retailers, office occupancies, and other low hazard enterprises.
The policy includes both business property and general liability coverage. It can cover commercial buildings or be used for companies that rent their location.
On the property side, the policies usually include special perils coverage and replacement cost evaluation. A variety of deductible options are available. Simple business interruption coverage offering both loss of income and extra expense coverage is usually a part of the coverage.
The liability coverage is very close to that offered in the comprehensive general liability form. It includes both premises liability and products liability coverage for bodily injury and property damage losses.
Optional coverage include flood, earthquake, non-owned auto, employment practices liability, and professional liability (for low hazard businesses).
These policies are simple for insurers to issue and agents usually can quote the premiums right from their offices.