The BOP covers any buildings the business owns and much of the property needed to run the business.

Specifically, the policy covers the following.

• Buildings as named in the policy "Declarations," generally the first pages of the policy. Structures are covered as well as permanently installed fixtures, machinery and equipment; outdoor fixtures; items you use to maintain or service the building, such as appliances; and additions under construction. You can choose to insure your buildings at their "actual cash value" (what they are worth) or their "replacement cost" (what it would cost to replace them with new construction).  To keep up with the increasing cost of rebuilding, the policy's limit of insurance for covered buildings will automatically rise by a set percentage each year.  Be sure to discuss with your agent whether you should purchase the standard building coverage or replacement cost coverage.

• Building contents, although there are a few exceptions. The policy covers most property on or near the business premises that is used in the business. This would include such things as machinery, computers, raw materials, or inventory. You also have coverage for any leased property, which you are contractually obligated to insure.

• Property of others that is in your care, custody and control to the extent you are legally liable for that property. This coverage is particularly important to a business, such as a computer repair shop, that earns revenue from servicing the property of others.