Liability coverage in a BOP is provided on what basis?

Liability coverage in a Businessowners Policy (BOP) is typically provided on an occurrence basis. This means that coverage is extended for incidents that occur during the policy period, regardless of when the claim is actually made. This is important for businesses because it protects them from liability claims that could emerge after the event causing the claim has taken place, as long as the event occurred while the policy was in effect.

Occurrence-based coverage is beneficial for businesses since it provides more comprehensive protection over time. Unlike claims-made policies, which only cover claims made during the policy period regardless of when the incident happened, occurrence policies ensure that businesses are protected as long as the event occurred while the policy was active. This distinction is crucial for understanding how liability insurance operates within a BOP framework.