Business owner's policies (BOPs) are insurance packages that provide both property and liability coverage at one affordable premium. These packaged policies are available to most small and medium-size companies and can be a good alternative to purchasing separate policies for liability and property insurance.

Large companies and businesses that are considered high risk usually don't meet the criteria for a BOP. The criteria for BOP eligibility include the size of the premises, the required limits of liability, the type of business and the extent of offsite activity. Premiums for BOP policies are based on similar factors, including business location, financial stability, building construction, and security features and fire hazards.

Note: Just as you'd protect your home and its contents, you also should cover your business assets against a loss. But make certain the coverage is adequate — look at the property's replacement value, actual value (replacement costs less any depreciation) or some other amount you deem adequate. This policy also insures you against property damage or injury caused by something that your business did or perhaps did not do.

Source: AllBusiness Newsletter
Microsoft Small Business Center

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