Understanding Inclusions and Exclusions in a Business Owners Policy (BOP)

A business owner’s policy (BOP) offers a convenient and cost-effective way for small and mid-sized business owners to bundle essential insurance coverages. Knowing the inclusions and exclusions of a BOP helps business owners make informed decisions and avoid coverage gaps that could lead to financial loss.

What Does a BOP Typically Include?

A standard BOP combines three core types of coverage:

• Commercial property insurance can help cover physical assets such as buildings, equipment, inventory and furniture against risks like fire, theft and natural disasters.
• General liability insurance can cover third-party claims of bodily injury, property damage and personal or advertising injury.
• Business interruption insurance can provide compensation for lost income and operating expenses if the business is forced to close temporarily due to a covered event.

Some policies may also allow optional endorsements for additional coverage, such as data breach protection, equipment breakdown or hired and non-owned auto liability.

What Is Typically Excluded From a BOP?

Despite its broad coverage, a BOP does not cover every risk. Common exclusions include:

• Professional liability—Not covered unless added separately.
• Flood and earthquake damage—Typically excluded and must be insured through separate policies.
• Intentional acts or criminal behavior—Losses resulting from illegal or deliberate actions are not covered.
• Employee injuries—These are handled through workers’ compensation insurance, not a BOP.
• Cyber liability—Data breaches and cyberattacks are not covered unless specifically endorsed.

Coverage limits and deductibles also apply, which may affect the amount paid out in a claim. Exclusions vary by insurer and policy type.

Review Your Coverage

Understanding the scope of a BOP is essential for managing risk effectively. Business owners should not assume that all potential threats are covered under a standard policy. A thorough review of inclusions and exclusions can reveal areas where additional coverage may be needed.

Contact Gamecock Insurance Agency to learn more about your BOP coverage. Our agents can help clarify what is covered, explain exclusions and recommend endorsements or separate policies to address coverage gaps.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.