Business Owner's Policy

Small Business Owner’s Policy (BOP) Insurance

B2Z Offers Business Owner’s Policy Insurance

Should you purchase this coverage for your small or mid-sized business? What is included? What is not covered? We know you’re wondering about this, so B2Z did the research for you. Below are answers to the questions we are asked most often regarding business owner’s insurance.

What You Need to Know About BOP Insurance

  1. Q
    What is a Business Owner’s Policy?

    A Business Owner’s Policy (often abbreviated as BOP) is a type of multiple-peril commercial insurance policy specifically designed for small businesses. Multiple peril simply means that a BOP policy conveniently bundles both property and liability coverage for your small business into a single insurance policy—eliminating the hassle of dealing with two policies when one will do.  

    Your small business BOP includes commercial property coverage for buildings, business personal property and business interruption, as well as liability coverage for bodily injury, personal and advertising injury, and medical expenses. Additionally, your BOP provides legal defense fees and pays most court costs if your small business is sued as the result of a covered claim.

  2. Q
    Why do I need a Business Owner’s Policy for my small business?

    Like any insurance product that you buy, you need Business Owner’s Policy coverage to protect you and the assets of your business. Also, if your small business leases or rents property or has a mortgage, then property and/or liability insurance may be a contractual condition.

  3. Q
    How does a Business Owner’s Policy work?

    In a nutshell: You pay premiums (on behalf of your small business) and in exchange, the insurance company agrees to pay for losses and associated expenses that are covered by the policy. Your policy documents are the legal contract between your small business and the insurance company.

  4. Q
    What does a Business Owner’s Policy (BOP) typically cover?

    A BOP generally pays for direct physical loss to buildings and business personal property as long as the cause of loss is not specifically excluded (such as by war, nuclear hazard, flood, fungi, virus or bacteria, just to name a few). It also extends to the lost income resulting from a covered event. Additionally, BOP may cover liability claims for bodily injury, property damage, and personal and advertising injury—and associated medical payments are covered, regardless of fault.

  5. Q
    What doesn’t a Business Owner’s Policy typically cover?

    Like any type of insurance policy, a BOP excludes certain causes of loss and does not provide coverage for risks outside the scope of the BOP. For example, aircraft, commercial autos, contraband, steam boilers and watercraft are not covered under a Business Owner’s Policy, nor are losses caused by flood, pollution, nuclear hazard or war. Other exposures and risks are specifically excluded by a BOP; however, some can be covered by adding endorsements to the BOP or by buying other additional insurance policies.

Because You Can Never Have TMI (Too Much Information) When It Comes to Insurance

Understanding your Business Owner’s Policy coverage is important. To put it plainly, let’s think of the BOP as a homeowner’s policy for your small business. Just as a homeowner’s policy protects your home and belongings, a BOP protects your business’s building and its contents, as well as most liability and medical payment expenses that may pop up in the course of owning your small business. So, what exactly is covered?


Building/Business Personal Property Coverage

Typically covers direct physical loss as well as:

  • Business income and extra expenses
  • Business income from dependent properties
  • Glass expenses
  • Fire department service charge and fire extinguisher system recharge expenses
  • Debris removal and increased cost of construction
  • Money orders and counterfeit money forgery or alteration


Liability Coverage

Typically covers bodily injury, property damage, personal and advertising injury, and medical payments:

  • Medical payments coverage regardless of fault
  • Defense against any lawsuit seeking liability damages
  • All court costs
  • Most additional expenses
  • Most interest expenses


This seems almost too good to be true, doesn’t it? Obviously, there must be a catch, and here’s a sampling of what’s not covered:

Building/Business Personal Property Coverage Exclusions

  • Aircraft, automobiles, motor trucks and other vehicles
  • Watercraft (while afloat)
  • Damages due to war
  • Contraband
  • Land, water, growing crops or lawn
  • Steam boilers
  • Interior damage from rain, snow, sleet, ice, sand or dust
  • Ordinance or law
  • Earthquake damage
  • Flood damage
  • Fungi, wet rot and dry rot
  • Viruses and bacteria
  • Frozen plumbing
  • Pollution damage
  • Wear and tear
  • Continuous or repeated seepage or leakage of water


Liability Coverage Exclusions

  • Expected or intended injury
  • Aircraft, auto or watercraft
  • Liquor liability
  • Workers’ compensation
  • Employer’s liability
  • War
  • Criminal acts
  • Electronic data
  • Pollution