A business owners policy (BOP) combines property insurance and liability insurance in one convenient package. It includes property insurance for buildings and contents owned by the company and business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts operation. It can also include the extra expense of operating out of a temporary location. Liability protection covers the company’s legal responsibility for the harm it may cause to others as a result of the things the business owner and employees do (or fail to do) in the operation of the business that might cause bodily injury or property damage due to defective products, faulty installations, or errors in provided services.
NOTE: In addition to the standard business owners policy, business owners have the option to purchase optional coverage that allows them to tailor a policy to their unique business needs.