For you readers who think the term BOP refers to a type of dancing that’s popular today, there’s a guy on YouTube named Jeff Baylock who wants to teach you how to do it. But for the rest of you, that’s not what this article is about.

In the business world, a BOP is a “business owners policy” which covers some of the basic insurance needs of small businesses—those with about 100 employees or fewer. Designed specifically for the small business, this type of insurance is based on the fact that many small businesses have the same coverage needs, so insurance can be standardized and sold at a cost less than the total expense of each type of coverage when bought separately. Both business liability insurance and business property insurance are combined into the BOP package, making it a smart move for most small businesses to have.

The insurance company decides if the business qualifies for a BOP based on the type and size of the business, its property, and the business location. BOPs cover basics like fire, smoke damage, theft, vandalism, explosions, and wind damage. They will also cover the loss of income caused by a fire or other catastrophes, plus the extra costs of moving to and operating out of a temporary location. Additionally, specific situations like mechanical problems and merchandise spoilage can be covered through negotiation with the insurance company.

Koch Insurance Group will help you define what type of BOP coverage your small business needs. Contact them.