43
Chapter 2 Property and Casualty Insurance for Homes and Businesses
Business Owner’s Policy Insurance
Business owner’s policy insurance, known also as BOP, provides
low-cost property and liability coverage to small businesses. It also
covers loss of income if the business has to stop operating for a while.
Let’s say you open a small bookstore, and a bad storm tears off part of
the roof. A business owner’s policy would cover the damage to your
shop, injury to the customer who happened to be browsing at the time,
and payroll and taxes while your store is closed for repair. You can
buy the coverage to pay either the cash value of your lost property or
its full replacement cost.
Businesses must protect
themselves against
property damage,
but there are other
perils they need to be
protected against as
well.
Source: Shutterstock (Dennis Tokarzewski)
Checkpoint 2.2
0- Vg‘shrBFK
1- Vg‘scndrBFKbnudq
3. What does commercial property insurance cover?
4. What is the benefit to a business owner of purchasing a commercial
package policy?
4- Vg‘scndr‘atrhmdrrnvmdqonkhbxoqnsdbs‘f‘hmrs
Build Your Vocabulary
As you progress through this course, develop a personal glossary of
insurance terms and add it to your portfolio. This will help you build your
vocabulary and prepare you for a career in insurance. Write out a definition for
each of the following terms, and add it to your personal insurance glossary.
commercial general liability insurance
commercial property insurance
commercial package policy insurance
business owner’s policy insurance