Business Owners Policy (BOP)
Bundled coverage combining general liability and commercial property insurance.
Typical cost: $500 – $3,000 per year
What Is a Business Owners Policy?
A Business Owners Policy (BOP) combines essential coverages—commercial property, general liability, and business interruption insurance—into a single, affordable package designed for small to medium-sized businesses. It's typically cheaper than buying each coverage separately.
Who Qualifies
BOPs are designed for smaller businesses that meet certain criteria: office-based businesses, retail stores, restaurants, and service businesses with limited square footage, revenue under certain thresholds, and low-risk operations. High-risk industries like construction typically don't qualify.
What's Not Included
A BOP doesn't cover everything. You'll need separate policies for workers' compensation, professional liability/E&O, commercial auto, health insurance, and cyber liability. Think of a BOP as your foundation, with additional policies added as needed.
What's covered
Commercial Property
Covers your building, equipment, inventory, furniture, and business personal property.
General Liability
Protects against third-party bodily injury and property damage claims at your business.
Business Interruption
Replaces lost income and covers expenses if your business must close temporarily.
Equipment Breakdown
Covers repair or replacement of mechanical and electrical equipment failures.
Product Liability
Covers claims arising from products you manufacture, sell, or distribute.
Electronic Data
Covers costs to restore data lost due to covered equipment damage.
Specialized coverage
Explore specific business owners policy (bop) options.
Small Business Insurance
Tailored coverage for businesses with fewer than 100 employees.
Startup Insurance
Essential coverage for new and emerging businesses.
Franchise Insurance
Coverage designed for franchise owners and operators.
Home-Based Business Insurance
Protection for businesses operated from home.
Retail Business Insurance
Coverage for brick-and-mortar retail stores.
Restaurant Insurance
Specialized coverage for food service businesses.
Construction Business Insurance
Comprehensive coverage for contractors and builders.
Pros and cons
Advantages
- Bundled savings—typically 10-15% cheaper than separate policies
- Simplified purchasing with one policy and one premium
- Covers the most common small business risks
- Business interruption maintains cash flow during closures
- Easy to customize with endorsements
- Streamlined claims process with single insurer
Considerations
- Not available for all business types or sizes
- Coverage limits may be insufficient for larger operations
- Professional liability not included
- Workers' comp and commercial auto require separate policies
- May not cover specialized industry risks
Frequently asked questions
Related coverage
Core business protection against third-party bodily injury and property damage claims.
Errors & omissions coverage for professionals providing advice or services.
Coverage for businesses that manufacture, distribute, or sell products.
Required coverage for employee work-related injuries and illnesses.
Vehicle coverage for business-owned cars, trucks, and fleets.
Protection against data breaches, cyberattacks, and digital liability.
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