Business Owners Policy (BOP)
Real package policy claims from small businesses
See how Business Owners Policies respond to real losses across different small business types. These scenarios illustrate the value of bundled coverage.
BOPs are designed for small to medium businesses. These claims show how the combined property and liability coverage works together to protect diverse business operations.
Burst pipe floods store during winter
What Happened
A pipe burst overnight during a cold snap, flooding the store with several inches of water. Inventory, fixtures, and flooring were damaged. The store couldn't open for two weeks.
Coverage Response
Property coverage paid for inventory replacement ($45,000), fixtures ($15,000), and flooring repair ($8,000). Business interruption covered lost income and ongoing rent during closure ($12,000).
Key Takeaway: The owner's inventory list made the claim much faster to settle. The business interruption coverage was critical—rent was still due while closed.
Client trips on loose carpet, sues
What Happened
A client visiting a law office tripped on loose carpet in the lobby, breaking her wrist. She sued for medical bills and lost wages.
Coverage Response
The BOP's liability coverage defended the lawsuit and settled for $35,000. Defense costs ($15,000) were paid in addition to the settlement.
Key Takeaway: Regular property inspections prevent premises liability claims. The office now has monthly safety walkthroughs documented.
Kitchen fire damages building and equipment
What Happened
A grease fire in the kitchen spread quickly, causing significant damage to equipment and the building interior. The restaurant was closed for six weeks during repairs.
Coverage Response
Building damage ($75,000), equipment replacement ($40,000), and business interruption ($55,000 for lost income and employee wages) were all covered under the BOP.
Key Takeaway: Hood cleaning records proved the restaurant followed safety protocols, preventing any coverage disputes. Business interruption was the largest portion of the claim.
Theft of equipment from locked van
What Happened
Thieves broke into a pest control company's van overnight, stealing $8,000 in equipment and chemicals. The van was parked at the owner's home.
Coverage Response
The BOP's business personal property coverage—which extended to property in vehicles—covered the stolen equipment. A $500 deductible applied.
Key Takeaway: Understanding the off-premises coverage in your BOP is important. This business now uses GPS trackers on high-value equipment.
Need help with your business owners policy (bop)?
Our licensed agents can help you understand your coverage options and find the right policy for your business.