Business Owner's Policy (BOP)

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What is a Business Owner's Policy (BOP)?

A BOP is short for a Business Owner’s Policy in insurance industry slang.

As a business owner, you know you need some type of business insurance. But do you know what kind? Business insurance is generally tailored to each specific insured and their business. However, there are some policies from which almost all small businesses can benefit. One of these policies is the business owner’s policy or BOP. Read on for all you could possibly need to know about this important policy.

Business Owners Policy (BOP) - The Craven Agency

A BOP is a package policy that includes several business insurance policies into one:

  • Commercial Property Insurance
  • General Liability
  • Business Interruption

These policies can usually be purchased individually, but a small business owner can combine them into one convenient package under a BOP.

Commercial Property Insurance

A commercial property insurance policy is similar to a homeowner’s policy in that it covers the structure of a commercial building and any of the business property inside.

Some of the perils covered under a commercial property insurance policy are fire, theft, lightning, vandalism, or wind.

However, like most policies, there are exclusions. Most commercial property policies will not cover flooding or earthquakes, and separate policies must be purchased to cover that exposure.

General Liability

General liability policies cover bodily injury and property damage losses for which businesses are legally responsible.

This policy is one of the most important insurance policies a business can carry. Liability claims can be significant, especially if there is a lawsuit involved.

A general liability policy is the best way that organizations can protect themselves from the potential of financial devastation resulting from one of these losses.

Business Interruption​

Business interruption insurance covers operating expenses if a business is forced to close for a certain period of time.

Unlike the commercial property or general liability policies above, business interruption is not a policy you can purchase as a stand-alone.

These policies are typically purchased as an endorsement to another policy. A BOP, for example.

What Else Can a Business Owner's Policy (BOP) Cover?

Often, an insured is able to add additional coverages to a business owner’s policy for even more coverage:

Depending on the type of business you run, you may not need these additional coverages. But if you do, it’s much simpler to have one policy for all your business needs.

Who needs a Business Owner's Policy (BOP)?

Businessowner’s policies are ideal for small business owners. Companies should typically have less than 100 employees and no more than $5 million in revenue to be eligible for a BOP. Depending on the insurance company, some businesses may be ineligible based on the inherent risks involved in running them. Restaurants are an example of this. But it’s always best to check with a professional.

How can I get a Business Owner's Policy (BOP)?

It’s critical to discuss all your business needs with a licensed expert who can guide you in the right direction of what you may need.  Our professionals are knowledgeable and ready to help with all your business needs. 

Contact The Craven Agency today! Serving Shreveport, Bossier City, Minden, Ruston, Monroe and the surrounding communities in Louisiana and the Ark-La-Tex regions.​


We'd love to talk through any of your business or personal needs and build the right insurance policy for you.

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