A businessowners policy (BOP) is to a small business what a homeowners policy is to a household: one ready-made package. The CDI outline describes it as coverage for small and medium-sized businesses that combines integrated property coverage, general liability coverage and other coverages most businesses need, with optional coverages that can be added for specific needs.

Built in, not bolted on: the ISO BOP includes business income and extra expense as additional coverages, so a covered property loss can also pay for lost income and the cost of staying open. On an ISO commercial property policy, the same protection needs its own coverage form.

What a BOP leaves out: auto and workers' compensation are generally excluded. Commercial auto is not included: the liability section excludes autos owned or operated by an insured, and the property section does not cover vehicles subject to motor vehicle registration. The liability section also excludes workers' compensation obligations, so the business needs a separate workers' compensation policy.

The fix for rented and employee-owned cars: hired and non-owned auto liability can be added to the BOP by endorsement. It suits a business that rents autos or whose employees drive their own cars for work. It does not help with an auto the business owns, which needs commercial auto coverage.