BOP Inclusions and Exclusions: What Business Owners Need to Know

As small business owners, understanding possible financial risks and how to address them is critical. For those in your position, understanding all of your insurance options can be particularly valuable for protecting your livelihood and planning the future. One of the most popular choices for multifaceted coverage is a business owners policy (BOP), but understanding the ins and outs of these products requires careful attention to detail.

What Can a BOP Cover?

A BOP is designed to bundle key coverages into one convenient package, making it a practical choice for many small businesses across various industries. In many cases, BOP carriers may include the following in standard policies:

• Business property insurance can cover your building (if owned) and company belongings, such as equipment, inventory and furniture. Covered perils typically include fires, theft, vandalism and certain weather events.
• General liability insurance can financially protect your business if someone claims it’s at fault for their bodily injury, property damage or personal injury.
• Business interruption insurance can cover lost income and ongoing expenses if your business is forced to close temporarily due to a covered event.

Common Exclusions: What a BOP May Not Cover

While a BOP can offer broad coverage, it’s important to know its limits. While some insurers may offer greater customization opportunities than others, standard BOPs typically do not include:

• Professional liability insurance
• Workers’ compensation insurance
• Commercial auto insurance
• Cyber liability insurance
• Flood insurance
• Earthquake insurance

Why Understanding Inclusions and Exclusions Matters

While BOPs can provide a cost-effective and convenient coverage option for eligible businesses, knowing their capabilities and limitations is essential for identifying and addressing remaining coverage gaps. The knowledgeable and experienced staff at Beezo Insurance is prepared to help your small business review its coverage needs and procure an optimal policy.

Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.