A business owner’s policy most commonly known as a BOP in the insurance world is essential. It helps protect your business from a huge list of losses. Insurers consider a number of factors when deciding to write BOPs, including: the type of business, the size of the premises, the required limits of liability, and the extent of offsite activity.
The type of business can be all sorts of classifications from a Fashion Boutique to a Donut Shop. Other business that may carry a Business Owners Policy are Auto Repair Shops, Real Estate Offices, Wholesalers and Distributors, and more! CEO’s and Bosses have big responsibilities that come served on the side of management. The size of the premises is the actual size of a business like an office, storefront, or restaurant. Usually the required limits of liability are standardized based on the categories. Lastly, the extent of offsite activity could be going on a trip, delivery, and situations where the business may have to relocate to a different location.
See illustration below: