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. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center