What is a Business Owners Policy (BOP) designed to do?

A Business Owners Policy (BOP) is specifically designed to eliminate coverage gaps for small to medium-sized businesses by bundling multiple types of insurance into one comprehensive policy. This typically includes coverage for property damage, liability, and business interruption, making it a cost-effective solution for business owners.

By combining these coverages, a BOP streamlines the insurance process and provides more protection compared to purchasing each coverage separately. This comprehensive approach not only simplifies risk management for business owners but also often leads to lower premiums compared to buying individual policies for each type of coverage. Bundling reduces the likelihood of having inadequate coverage, ensuring that businesses are better protected against a variety of risks they may face.

The other options do not accurately describe the purpose of a BOP, as it is not limited to just liability or property insurance, nor is it designed to increase insurance costs.