The business owner package policy — or BOP — provides many, though not all, of the insurance coverages needed by many small or medium-sized businesses. Sometimes referred to as a homeowners policy for a business, BOPs vary by insurer, but standard features of the BOP or “package” policies include:
- property coverage for buildings, equipment and contents
- liability for third-party claims brought against the business which occur on the premises or from products or operations
- crime insurance for loss of money from burglaries, robberies and destruction; and coverage to protect from employee dishonesty, such as embezzlement and theft
- vehicle coverage for rented or borrowed vehicles
- business income protection, which provides reimbursement for up to one year of lost income if due to damage from a covered peril, as well as extra expense coverage to pay for necessities required to expedite restoring the business.
By combining all these coverages in separate policies in one policy, you can save money and might avoid coverage gaps. Other advantages of the BOP are its flexibility, expanding to meet the needs of a growing, changing business and the simplicity of having one policy instead of several. Notable coverages not included in BOPs are workers’ compensation, professional liability, equipment breakdown and business auto coverages.