What type of insurance policy typically includes liability coverages for business owners?

• A. Business Owner's Policy
• B. Property Insurance
• C. General Liability Insurance
• D. Commercial Coverage

Answer: (A)

A Business Owner's Policy (BOP) is specifically designed to meet the insurance needs of small to medium-sized businesses by combining several coverages into a single policy. This typically includes property coverage for the business's physical assets, as well as liability coverage that addresses risks associated with running a business, such as bodily injury or property damage claims made by third parties.

The inclusion of liability coverages in a BOP makes it particularly appealing for business owners, as it streamlines the process of acquiring essential protections without the need for separate policies. Additionally, BOPs often come at a more affordable rate than purchasing each type of coverage individually, making it a cost-effective solution for business operators.

In contrast, property insurance generally focuses solely on covering physical assets, while general liability insurance, although critical for protecting against liability claims, does not cover property. Commercial coverage is a broader term that may refer to various types of business insurance but does not specifically denote a combined policy with established liability protections like a BOP.