A typical business owner's policy includes property and liability insurance. The property insurance portion of a BOP is available most often as named-peril coverage, which provides compensation only for damage caused by events specifically listed in the policy (typically fire, explosion, wind damage,
vandalism, smoke damage, etc.). Some BOPs offer open-peril or “all-risk” coverage; this option is available from the “special” BOP form rather than the “standard.” Types of property covered by a BOP usually include: •
Buildings: Owned or rented business premises, additions and additions in progress, outdoor fixtures. •
Personal business property: Any items owned by the business or business owner or owned by a third party but kept temporarily in the care, custody or control of the business or business owner. To be covered by a BOP, business property must be stored or kept in specified proximity of business premises (e.g., within 100 feet of the premises). This coverage typically takes the form of compensation for legal fees related to third-party lawsuits over such incidents (including lawyers’ fees, settlements and court costs). In addition, BOP liability coverage may include compensation for medical expenses that result from an injury to a third party on a covered business's premises for up to one year after the incident occurs. In addition to standard coverages, most insurance providers offer optional additions or endorsements on business owner's policies that business owners can use to tailor a policy to their specific needs. == Exclusions & Optional Coverages ==