Business Insurance Quotes

Just what does B.O.P. stand for and what does it provide?

B.O.P. is short for for Businessowner Policy. A BOP is a commercial package insurance policy that offers liability and property protection for certain kinds of small business companies by providing a prepackage group of policies. Many insurance providers design their own BOP type policies.

Eligibility guild lines for BOP's are very strict compared to commercial insurance policies. Eligibility guild lines focus on size of building and the specific kind of business. Ideal BOP's are small, well-managed one-location businesses with easy coverage needs.
An example of some types of businesses are some wholesale, processing and service, restaurant, and convenience stores. Check with your insurance providers for a complete list of businesses that fit in the BOP classification. As a rule of thumb, businesses exceeding 25,000 square feet in total floor area or 3 million in annual gross sales (at each location) are generally not excepted for a BOP.

Property coverage for a BOP include to major categories:

Coverage - A - Building
Coverage - B - Business Personal Property

Building Coverage - There are additional items covered under the building coverage other than just the buildings and structures on the premises. Some of these include:

Fixtures, including outdoor fixtures, such as garden hoses, snow removal equipment and lawnmowers.

Machinery and equipment permanently installed.

Completed additions.

Business Personal Property Coverage - covers 5 different classes of business personal property:

1. Exterior glass
2. Tenants' improvements and betterments.
3. Property owned and used by the insured in the business
4. Leased personal property that the insured has a contractual responsibility to insure.
5. Property of others in the insured's care, custody, or control.

Exterior glass is protected under the business personal property should the insured be a tenant and not have building coverage. Also, glass must be owned by the insured and/or in the care, custody, and control of the insured.


Tenant's improvements and betterments are items permanently attached to a rented building in which the insured uses for their place of business. Permanent items must be acquired or made at the insured's expense, and unable to be legally removed. For example, carpet. This also includes fixtures, alterations, installations, or additions.
Property in or on a building, in a vehicle, or in the open within 100 ft of the described premises is covered.
Photocopiers and computer equipment are item that can be leased and the insured has a contractual obligation to insure these items. These items are covered.

Property That is Not Covered
The following list is only a few of the items not coverage under a BOP, refer to your insurance professional for a complete list.

Aircraft
Contraband and property being illegally traded or transported.
Money and Securities*
Outdoor Signs not attached to the building*
Land (including land on which the property is located), water, growing crops.
Electronic data*

*Except as covered under an optional coverage or coverage extension.


You canlearn more about business owner policy (BOP's) and policy options @
Monument Commercial Insurance Agency.