Skip to main content

15.0 Businessowners Policy

Learning Objectives​

Upon completion of this chapter, you should be able to:

  1. Identify risks that are eligible and ineligible for a Businessowners Policy (BOP).
  2. Recognize the coverage provided under Section I – Property.
  3. Distinguish between Additional Coverages, Coverage Extensions, and Optional Coverages.
  4. Recall the Section I exclusions.
  5. Recognize the coverage provided under Section II – Liability.
  6. Identify the provisions in Section III – Common Policy Conditions.
  7. Understand the purpose and benefits of selected BOP endorsements.

Overview​

A Businessowners Policy (BOP) is a package policy that combines property and liability coverage for eligible businesses, similar to how a Homeowners policy combines coverages for a home. A BOP is often more cost-effective than purchasing separate property and liability policies because it includes property coverages that may otherwise require endorsements. Its liability coverage is similar to a Commercial General Liability (CGL) policy, including coverage for premises and operations, products and completed operations, personal and advertising injury, and medical payments to others.

Unlike other commercial policies, the Businessowners Policy (BOP) does not use separate causes of loss forms for property coverage or separate liability coverage forms like a Commercial General Liability (CGL) policy. Instead, the BOP provides broad property and liability coverage within a single policy.

This chapter explains the coverages, exclusions, and conditions provided by the Businessowners Coverage Form.

An Insurance Story

Liam purchases a retail space for Coffee Café, a small coffee shop that serves coffee, tea, smoothies, and baked goods. Because the café meets the eligibility requirements for a Businessowners Policy (BOP), Liam can obtain both property and liability coverage through a single, cost-effective policy instead of purchasing a Commercial Package Policy.