What it covers
Bodily injury and property damage to third parties from your premises or operations, products and completed work, and personal and advertising injury such as certain defamation claims. Legal defense is generally included.
Exclusions to know
- Injuries to your own employees
- Professional mistakes for most service businesses
- Auto accidents in owned vehicles
- Pollution in most forms
- Intentional acts
How the limits are structured
The liability section of a BOP usually has a per-occurrence limit and an aggregate limit for the policy year. Products and completed operations may share the aggregate or have one of their own, depending on the form. Medical payments coverage, which pays small injury claims from visitors regardless of fault, is often included with a low limit. Leases and client contracts may require specific limits, so check them before choosing.
Examples of covered claims
- A customer trips over a box in your aisle and is injured
- An employee working at a client's office breaks an expensive fixture
- A product you sold injures the buyer
- A competitor claims your advertisement used its slogan
Coverage you may need to add
Some exposures are not handled by the BOP liability section and need separate policies or endorsements. Professional liability covers errors in advice or services. Employment practices liability addresses claims such as wrongful termination or harassment. Cyber coverage deals with data breaches. Hired and non-owned auto can be added to many BOPs for employees who drive their own cars on business. An umbrella can sit above the BOP to raise liability limits.
Contracts and additional insureds
Landlords, franchisors and larger customers often ask to be added as additional insured. Many BOPs include endorsements for common relationships such as landlords and vendors, while others add them one by one. Ask how certificates are issued and whether waiver of subrogation is available if a contract requires it.
Frequently asked questions
Can I add a landlord as additional insured?
Yes, usually by endorsement, and many leases require it.
Does BOP liability cover a data breach?
Generally not. Data breach and cyber liability are usually covered separately, sometimes offered as an add-on to a BOP.