What Is a Commercial General Liability Insurance Coverage and Property Package Policy (BOP)?
If you operate a small- to medium-sized, low-risk business, you may be eligible for commercial liability insurance coverage through an affordable property and general liability package policy called a Business Owner’s Policy, or BOP.
A BOP insurance package for small businesses is a single commercial insurance policy that combines property insurance with commercial general liability insurance coverage. For many small but expanding companies, buying a BOP to secure general liability insurance coverage is an affordable way to secure small business commercial liability insurance coverage. Our insurance agents in California can provide you with additional information.
Business insurance package policy
A Business Owner’s Policy includes:
- General liability insurance to cover your commercial liability, and
- Property insurance for physical assets, such as contents, that are leased or owned
A BOP insurance package policy might also cover the loss of business income and extra expenses caused by an insured peril.
In general, a business owner’s insurance package policy insures damaged or lost property for its replacement value. That means that in the event of a claim, you’ll receive a large enough settlement to replace the property, without any deduction for depreciation. A BOP’s property insurance also covers other people’s personal property, if you as a business owner are legally liable for damage to it.
General liability insurance
A BOP’s general liability insurance coverage is comparable to a typical commercial general liability insurance coverage (CGL) policy, in that it protects your business against claims of bodily injury or property damage. A BOP’s general liability coverage also provides business liability insurance coverage to pay the cost of:
- A legal defense in a lawsuit arising from an accident that causes bodily injury
- Property damage
- Claims such as libel, slander and false advertising – even if those claims are meritless
General liability insurance does not protect your business in the event that a client accuses you of professional errors or negligence. Those types of claims are normally covered by a professional liability insurance policy.