A BOP, or Business Owner’s Policy, is a commercial insurance policy that is more standardized that a traditional Commercial Package Policy, or CPP. Insurance companies look at certain industries or types of businesses and are able to determine that there are some homogenous qualities about that marketplace.
Similar to how most homeowners have the same basic risk exposures present in their homes (i.e. fire, wind, lightning, water damage from ruptured pipes, etc.), businesses that are eligible to be insured on a BOP product have enough similarities, across the board, that an insurance company can essentially create a pre-fabricated insurance policy for them. This is based on their calculations of the coverage needs and common risk factors associated within a given industry, type, or size of business.
For this reason, BOPs can be some of the most convenient, and best-priced, insurance policies to buy, as they eliminate much of the cumbersome coverage selection process that can occur during the initial purchase of a policy.