Business Owner’s policy (BOP) is a popular form of insurance for small to medium sized businesses. The policy combines some of the basic coverages needed by a small and medium sized business with the exception of auto insurance, flood insurance and earthquake insurance. The criteria for BOP eligibility include the size of the premises, the required limits of liability, the type of business and the extent of offsite activity. Premiums for BOP policies are generally less than that would be required to purchase all the basic coverages. Premiums are based on factors such as business location, financial stability, building construction, and security features and fire hazards.