What is BOP Insurance for a Small Business?

What is a Businessowners Policy (BOP)?

A BOP combines protection for common property and liability risks that small business owners face. Small businesses can save time and money by bundling multiple coverages under one insurance policy. It typically includes:

  • General liability insurance
  • Business income insurance
  • Property insurance

What is liability insurance under a BOP?

A BOP’s liability coverage protects against claims for bodily injury or property damage resulting from your business operations. This coverage can also help cover certain litigation costs in the event you are sued.

What is business income insurance?

Business income coverage protects your business from certain financial losses when you are forced to suspend business operations due to a covered property loss.

What is property insurance?

Property insurance under a BOP can cover the physical building your business owns, as well as the personal property used by your business.

Business personal property can include furniture, inventory, tools, and equipment located at your business.

What’s the difference between BOP and CPP?

  • Both BOP and Commercial Package Policy (CPP) offer basic liability protection from premises liability, property damage liability, and advertising liability claims.
  • They both offer endorsements to help tailor coverage based on a company’s needs.
  • BOP is designed for smaller businesses, while CPP is designed to meet the needs of mid-sized and larger businesses.
  • CPP contains additional coverages that a BOP may not include, such as inland marine.

Before deciding which policy is best for your business, be sure to contact a licensed business insurance broker or agent, who can provide more detailed information, help solicit quotes from insurers, and answer any questions you have.

An independent agent can help business owners understand which products can best meet their needs.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.

The information contained in this article should not be construed as professional advice, and is not intended to replace official sources. Other resources linked from these pages are maintained by independent providers; therefore, NJM cannot guarantee their accuracy.