Property Coverages
BOPs commonly cover this type of building including additions, fixtures, and permanently installed equipment.
What is buildings?
BOP liability coverage for claims such as libel, slander, or copyright infringement falls under this type.
What is personal & advertising injury liability?
These establishments that serve alcohol on-site are generally excluded from BOP coverage.
What are bars & pubs?
This type of medical coverage in a BOP pays for small medical claims for injured persons who are not employees.
What is medical expense coverage?
A package policy that combines most of the property and liability coverages needed by small and medium-size businesses.
Businessowners Policy (BOP)
This category includes your business’s own equipment, office furniture, and stock of goods.
What is business personal property?
This type of liability protects against claims for workmanship issues on products or services that have already been completed.
What is products and completed operations liability?
These types of auto-related operations—like repair shops and parking garages—are excluded due to loss exposure.
What are automobile businesses?
For a liability claim to pay, this condition requires the incident to happen during the active term and in the coverage area.
What is that the occurrence must take place during policy period and coverage territory?
An auto defined by the Business Auto Coverage Form as not owned, leased, hired, rented, or borrowed by the named insured.
Non-Owned Auto
The BOP covers this type of property belonging to others in the control of your business, like items being repaired or cleaned.
What is personal property of others?
This coverage helps defend your business if someone is injured on your premises due to your operations.
What is premises & operations liability?
This section of the BOP states the name of the insured, policy limits, location, and other basic info.
What are Declarations?
Even when the insured dies, this person may maintain BOP coverage if they hold temporary custody of business property.
Who is the legal representative?
The situation where individuals who expect to experience a loss are more likely to buy insurance, creating a high-risk pool that can lead to higher premiums or instability. Insurers counter this through underwriting and risk-based pricing.
Adverse Selection
This type of coverage pays for lost earnings and extra costs when your business must shut temporarily due to a covered event.
What are business income & extra expense?
These additional coverages can help protect against theft, forgery, or employee fraud.
What are employee dishonesty, theft of money & securities, forgery & alteration?
The part of the BOP that outlines how property and liability exposures are covered, along with common policy rules.
What is the Coverage Form?
This supplemental coverage helps with legal defense costs, beyond just paying damages.
What are supplementary payments (coverage extension)?
Declarations, coverage form, endorsements for modifications.
Policy Components
The policy’s definition of "building" includes structures beyond walled buildings—for example, this type of detached structure used for parking.
What is covered parking not surrounded by walls?
BOP liability coverage requires these two core services: paying covered damages and doing this other essential duty.
What are pay damages and defend the insured?
These allow customization of the BOP to fit specific needs of the insured.
What are endorsements?
In a partnership, this group of people—along with spouses—are considered insured when acting for the business.
Who are partners/members and their spouses?
Included: small offices, retail, fast-food restaurants, motels, apartments under size limits. Excluded: auto businesses, pubs, manufacturing, finance, amusement venues.
Eligibility Criteria