Business Owners Policy (BOP)
Definition
A bundled insurance package designed for small to medium businesses that combines commercial property insurance and general liability coverage into a single policy at a reduced premium. BOPs often include business interruption coverage. They are more affordable than purchasing each coverage separately but have eligibility requirements based on business size and type.
When This Matters
A small retail store buys a BOP that covers their building, inventory, liability for customer injuries, and lost income if they have to close due to a covered loss — all in one policy.
Related Terms
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