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Business Owner Policy
Typically, BOP stands for business owner policy. This is an insurance policy that is designed specifically for small businesses that are just beginning and may only need a few types of insurance. This type of policy packages several different types of insurance together, but the primary type of policy is general liability. This package is meant for "low risk" businesses that do not run the risk of serious accident or disasters.
Importance of BOP
General liability insurance can be very important, especially for certain types of businesses. Essentially, this insurance protects business owners from lawsuits that may be filed against the business. Most policies cover all partners who own the business and their spouses, as long as the lawsuit is directed at them for something they did as part of the business. These policies can also cover stockholders.
type of insurance most commonly included in a BOP is property insurance. This protects large assets of the business in case they become damaged or stolen. Small businesses do not have much capital and their assets are typically very important to them, so losing one can seriously impact business operations. This insurance protects against this problem.
Businesses may also choose professional liability insurance and workers compensation insurance, which are further developed versions of a BOP. Professional liability insurance covers businesses from lawsuits that seek damages for mistakes or negligence that has cost another business money. Workers compensation helps protect the business by providing medical and disability coverage for employees.
Business Opportunity Plan
BOP may also stand for business opportunity plan. This is an insurance policy that functions almost exactly the same as a business owner policy, although it may focus more on property insurance instead of liability insurance.