A Business Owner’s Policy (“BOP”) is a stand-alone package insurance policy designed to meet the property and casualty needs of small to medium sized businesses that qualify for its very reasonably priced premium. Risks are generally limited to 35,000 SQF of space and gross annual sales not exceeding $6M. A BOP is generally an “open perils” policy, meaning that if a peril is not excluded, it is covered by the insurance policy. Certain businesses are not eligible for the BOP policy, like bars, full-service restaurants, entertainment establishments (small theaters and game arcades, for example) and financial institutions. In a BOP, Section I includes Coverage A (which provides insurance coverage to the business buildings) and Coverage B (which provides insurance coverage to the business personal property); Section II includes insurance coverage for business liability (if a third party gets injured as a result of the activity of the business) and medical payments (the coverage pays for medical expenses of others, up to a certain amount, even if the insured is not legally obligated to pay – this is a “goodwill” coverage); and Section III includes common policy conditions that are applicable to both Sections I and II.

This is only a general primer. Insurance policies can be very complex and hard to understand. For all your insurance needs, or if you are considering making an insurance claim, reach out to the attorneys at Mag Mile Law at (708) 576-1624 or [email protected].