Final answer:
BOP is a comprehensive package covering property, income interruption, and liability, while BPP focuses on tangible assets protection without income or extra expense coverage. Liability protection is included in BOP but not in BPP, and location exclusions vary between the two.
Step-by-step explanation:
The differences between a Business Owner Policy (BOP) and Business Personal Property (BPP) Business Income and Extra Expense coverage fundamentally revolve around the scope and the extent of protection they provide for a business. A BOP is a comprehensive package that often includes various types of coverage such as property insurance for buildings and contents owned by the company, liability protection, and business interruption insurance. The BPP coverage typically falls under the BOP offering and concerns itself with the business’ tangible property, such as inventory, furniture, and other physical assets.
Income Protection through BOP typically includes what is known as Business Income and Extra Expense coverage, which helps a business cover earnings lost due to unforeseen business interruptions and the additional expenses of operating out of a temporary location. On the other hand, BPP strictly protects the physical assets and does not include protection for lost income or extra expenses.
Liability Coverage is another crucial difference, as BOP includes liability protection that safe-guards the business against claims resulting from injuries or property damage to others, while BPP does not offer such coverage. Finally, Location Exclusions might apply differently; the BOP might cover multiple locations under one policy, whereas BPP coverage may need to be specified for each location or might not cover certain locations at all.