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Business Owners Policy (BOP)

Updated: Feb 25, 2022

Business Owners Policy also known as BOP insurance is a commercial package policy that combines both property and liability coverage. It is the best option for small to medium sized businesses like apartments, retail stores, restaurants, and office based businesses.

Below are the Common Included Coverage in a Business Owners Policy:

Building Coverage

The limit is set to the Building Replacement Cost. Some may use ACH or actual cash value, which is the Replacement Cost less the Depreciation Cost. Insuring the building to ACH may result to lower premium since it allows the insured to use a lower building cost but the insured will be penalized later as claim payment will be lower than what the repairs or replacement will be.

Business Personal Property

It refers to the tangible and movable items owned by the company. It includes office furniture, office computer, office supplies, office interior furnishing, equipment inside or within 100 feet the business premise, printers, phones, tablets, and other electronic devices. It is important to have an inventory of the business assets so all are included in the blanket coverage of Business Personal Property.