Businessowners Policy (BOP)

Combination property and business interruption policy, usually written for small and medium-size businesses, to cover expenses: (1) resulting from damage or destruction of business property or (2) when actions or nonactions of the business's representatives result in bodily injury or property damage to (an)other individual(s).

Combination property, liability, and business interruption policy. It is usually written to cover expenses of small and medium size businesses resulting from (1) damage or destruction of business's property or (2) when actions or nonactions of the business's representatives result in bodily injury or property damage to another individual(s). Businesses that qualify under this heading include office buildings three stories or under not to exceed 100,000 square feet; apartment buildings six stories or under not to exceed 60 dwelling units; any other buildings not to exceed 7500 square feet for mercantile space, occupied principally as an apartment, office, or engaging in trade or commerce. Properties that cannot be insured under this policy include banks, condominiums, bars, restaurants, automobiles, recreational vehicles, contractor functions, and manufacturing operations. See also Businessowners Policy-Section I: Property Coverages; Businessowners Policy-Section Ii: Liability Coverages.