A BOP combines the following three main types of coverages:
Commercial general liability insurance helps protect a business if someone makes a claim against you or your organization. This could include coverage for the following situations:
A customer slipping and falling in your establishment
A defective product that causes damage to someone’s personal property
Legal claims related to advertising
Commercial property insurance helps protect any property associated with the business, including the physical building you own, lease or rent, and any equipment, furniture and inventory. It may help cover repairs or replacement costs of stolen, damaged or destroyed property, including assets that aren’t owned by you but are in your care. Commercial property insurance may also cover loss of income and covered expenses while your property is being repaired or replaced due to a covered loss.
Business interruption insurance, also known as business income insurance, helps financially protect your business if it is forced to close following a covered loss. It can help pay for certain recurring business expenses, such as taxes, commercial property rent, and payroll.
Your insurance provider will determine the exact situations covered by your BOP. It’s important to discuss your business’ risks when determining what will be included in your policy.