Business Owners Policy (BOP)

I Stock -508857266What is a business owners policy (BOP)?

A business owners policy (BOP) can insure small and medium-size businesses against multiple business perils by providing property, liability, and business interruption insurance coverage. It is a type of commercial package policy and is designed for relatively small retail businesses, certain processing and service businesses, and businesses that operate out of small office, condominium, or apartment buildings. The typical landlord or business owner who has a business owners policy has a single location business, with predictable risks and, at most, a moderate level of insurance exposure. The property coverage includes buildings and business owned personal property. The liability coverage includes bodily injury, property damage, personal injury, and advertising injury.

What types of businesses are typically eligible for a BOP?

The types of businesses that typically can obtain a BOP include:

  • Appliance repair shops
  • Bakeries
  • Dental laboratories
  • Funeral homes
  • Hair salons
  • Laundries and dry cleaners
  • Locksmiths
  • Photocopying centers
  • Shoe repair shops
  • Watch, clock, and jewelry repair shops

What types of businesses aren't eligible for a BOP?

The following types of businesses have risks outside the scope of a business owners policy and thus are ineligible for this coverage:

  • Bars
  • Restaurants
  • Banks and other financial institutions
  • Auto dealers and repair shops
  • Manufacturers
  • Amusement parks
  • Theaters

What is the structure of a BOP?

The structure of a BOP involves four parts: declarations, policy conditions, a business owners liability form, and either a standard or special property form. The declarations and conditions are much like those for a commercial package policy. The liability form, as mentioned above, covers bodily injury, property damage, personal injury, and advertising injury. You have the option of either a standard property form that insures against specific named perils, or a special property form that offers open peril coverage.

Notice:

The information published on Continental National Bank website is true and accurate to the best knowledge of the bank at the time of publishing; Continental National Bank cannot be held liable for any actions that are carried out on the basis of that information, and the bank cannot guarantee the accuracy of all the information published. The information and views published on the website are subject to change without notice. Continental National Bank is not responsible for any third party content published on the website. The information published on Continental National Bank website does not in any way constitute advice to customers of any kind; ex. to buy or sell any particular financial instrument, tax advice; and users of the website are solely responsible for any investment decisions and or decisions of any kind, that they may make on the basis of the information published on the website. Continental National Bank cannot be held liable for any damage that may be suffered as a result of the information published on the website or any damage that may be directly or indirectly caused by the use of the website. In addition, Continental National Bank shall not be held liable for any damage arising from an inability to access the website for longer or shorter periods of time. Information offered through INFINEX INVESTMENTS, INC. Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017.

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