Business Owner Policy - BOP

AAA

DEFINITION of 'Business Owner Policy - BOP'

Insurance policies that combine protection from all major property and liability risks in one package. A Business Owner Policy or BOP is an insurance package that assembles the basic coverages required by a business owner in one bundle. It is usually sold at a premium that is less than the total cost of the individual coverages. Business Owners Policies usually target small and medium-sized businesses and typically contain business interruption insurance, which provides reimbursement for up to a year of lost revenue resulting from an insured property loss.

INVESTOPEDIA EXPLAINS 'Business Owner Policy - BOP'

A typical business owner policy includes: property insurance, business interruption insurance, crime insurance, vehicle coverage, liabilty insurance and flood insurance. Depending on additional risks a business owner might face, the business owner and the insurance company can make arrangememnts on additional components to be added to the original package.




RELATED TERMS
  1. Close Corporation Plan

    A form of business buy-sell agreement. Close Corporation Plans ...
  2. Business Income Coverage Form

    An insurance policy that covers a company's loss of income due ...
  3. Business Insurance

    Insurance coverage that protects businesses from losses due to ...
  4. Business Continuation Insurance

    Life insurance that a company or firm purchases to provide the ...
  5. Business Crime Insurance

    An insurance policy that companies purchase to ensure protection ...
  6. Business Interruption Insurance

    A form of insurance coverage that replaces business income lost ...
Related Articles
  1. Six Steps To A Better Business Budget
    Entrepreneurship

    Six Steps To A Better Business Budget

  2. Understanding Your Insurance Contract
    Insurance

    Understanding Your Insurance Contract

  3. Insurance Coverage: A Business Necessity
    Entrepreneurship

    Insurance Coverage: A Business Necessity

  4. How To Create A Business Succession ...
    Entrepreneurship

    How To Create A Business Succession ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center