What is the primary purpose of a Business Owners Policy (BOP)?

A Business Owners Policy (BOP) is designed specifically to cater to the needs of small to medium-sized businesses by bundling multiple types of insurance coverage into one comprehensive package. This typically includes property insurance to cover buildings and contents, general liability insurance to protect against legal claims, and business interruption insurance to compensate for lost income during events that disrupt operations.

The primary purpose of this bundling approach is to offer convenience and cost savings to business owners, allowing them to obtain essential coverages in a single policy instead of needing to purchase each coverage separately. This makes it easier for business owners to manage their insurance needs while ensuring they have adequate protection against various risks that could affect their operations.

The other options do not accurately reflect the purpose of a BOP. It does not focus on personal individuals, solely provide liability coverage, or insure residential properties, as those are outside the scope of what a BOP is intended for.