What is a bop?

A Business Overhead Policy (BOP) is a type of insurance designed for small to medium-sized businesses. It bundles several common insurance coverages into one package, typically including property insurance, liability insurance, and business interruption insurance. The specific coverages within a BOP can be tailored to meet the unique needs of a business.

Here's a breakdown of key elements:

• Property Insurance: This covers physical damage to a business's building, equipment, and inventory from covered perils such as fire, wind, theft, and vandalism.

• Liability Insurance: Provides protection against financial losses if the business is sued for bodily injury or property damage caused to others.

• Business Interruption Insurance: Also known as business income insurance, this coverage helps replace lost income and cover operating expenses if a covered event forces a temporary business closure.

A BOP is often more cost-effective than purchasing each of these coverages separately. However, BOPs are generally designed for businesses with relatively low-risk profiles and may not be suitable for all types of businesses.