Business Owners Policy (BOP) for California Companies

Who may need this coverage

• Small to mid-size offices, retailers, and service businesses
• Companies with a modest physical premises and contents to protect
• Businesses that want property and liability in one coordinated policy

What it may cover

Coverage depends on policy wording, exclusions, limits, and underwriting. The following are commonly addressed, subject to the policy terms:

• Building and business personal property at the listed premises
• General liability for third-party bodily injury and property damage
• Business income (interruption) for a covered cause of loss, subject to the policy's limits and period
• Selected additional coverages packaged into the BOP form

Common exclusions and limitations

• Professional liability / errors and omissions
• Workers' compensation and employer liability
• Commercial auto liability for owned vehicles
• Certain high-hazard operations, which may make a BOP unavailable

Relevant optional endorsements

• Equipment breakdown coverage
• Data breach or cyber-related extensions
• Employee dishonesty (crime) coverage
• Utility services and spoilage coverage

Factors that may affect pricing

• Property construction, age, and protection class
• Contents value and business personal property limits
• Liability limits and selected endorsements
• Industry eligibility and loss history

Information typically needed to request a quote

• Building and contents values
• Industry and a description of operations
• Annual receipts and payroll
• Current limits and any contractual requirements

A realistic example

Situation: A small professional office has a pipe leak that damages equipment and forces a temporary closure.

How coverage may respond: A BOP's property and business income coverage can address the equipment damage and some lost income for a covered cause of loss, subject to the policy's limits and period of restoration.