Which statement is TRUE concerning a Business Owners Policy?

Which statement is TRUE concerning a Business Owners Policy?

• A. It only covers commercial premises
• B. It combines property and liability coverage
• C. It is designed for large businesses only
• D. It provides no coverage for employee injuries

Answer: (B)

A Business Owners Policy (BOP) is designed to offer a comprehensive insurance solution for small to medium-sized businesses by combining different types of coverage in one package. Specifically, it typically merges property insurance, which covers physical assets like buildings and equipment, with general liability coverage, which protects the business from claims of bodily injury, personal injury, and property damage to others. This combination makes it more efficient and cost-effective for business owners compared to purchasing these coverages separately. The other options do not accurately reflect the nature of a BOP. For example, a BOP is not limited to only commercial premises, nor is it intended solely for large businesses; it is specifically tailored for small to medium-sized enterprises. Additionally, while it provides important liability protection, coverage for employee injuries is typically handled by a separate workers' compensation policy, not included in a BOP. Thus, the statement that the BOP combines property and liability coverage is true and highlights its integral role in providing essential protection for businesses.

A Business Owners Policy (BOP) is designed to offer a comprehensive insurance solution for small to medium-sized businesses by combining different types of coverage in one package. Specifically, it typically merges property insurance, which covers physical assets like buildings and equipment, with general liability coverage, which protects the business from claims of bodily injury, personal injury, and property damage to others. This combination makes it more efficient and cost-effective for business owners compared to purchasing these coverages separately.

The other options do not accurately reflect the nature of a BOP. For example, a BOP is not limited to only commercial premises, nor is it intended solely for large businesses; it is specifically tailored for small to medium-sized enterprises. Additionally, while it provides important liability protection, coverage for employee injuries is typically handled by a separate workers' compensation policy, not included in a BOP. Thus, the statement that the BOP combines property and liability coverage is true and highlights its integral role in providing essential protection for businesses.