Running a small business means juggling a lot of responsibilities every day. One of the most important things you can do is make sure your business is protected from the unexpected. A Business Owners Policy, commonly called a BOP, is intended to bring together two of the most essential types of business insurance into a single package: general liability coverage and commercial property coverage.
For many small and medium-sized businesses, a BOP is intended to offer a practical and cost-effective way to address core insurance needs without having to purchase multiple standalone policies.
A Business Owners Policy (BOP) is intended to combine general liability insurance and commercial property insurance into one policy. It is designed for small to mid-sized businesses that have a physical location and face common business risks. Many carriers also allow you to add optional coverages to a BOP to better fit your specific industry or situation.
What a BOP Is Intended to Cover
General Liability Coverage
The general liability portion of a BOP is intended to provide coverage for third-party claims of bodily injury or property damage. For example, if a customer slips and falls in your store, or if your business operations accidentally damage a client’s property, the general liability section of your BOP is intended to help address those claims. It may also include coverage for advertising injury, such as claims related to copyright infringement or defamation in your marketing materials.
Commercial Property Coverage
The commercial property portion of a BOP is intended to help protect your physical business assets. This may include your building (if you own it), your equipment, inventory, furniture, computers, and other business contents. If a covered event such as a fire, vandalism, or certain weather events causes damage to your property, your BOP is intended to help cover the cost of repair or replacement.
Business Interruption Coverage
Many BOP policies also include business interruption coverage, sometimes called business income coverage. This is intended to help replace lost income and cover ongoing expenses if your business is forced to temporarily close due to a covered loss. For example, if a fire damages your shop and you need to close for repairs, business interruption coverage is intended to help keep your business financially stable during that time.
A BOP is not intended to cover every type of business risk. Coverage for professional liability (errors and omissions), commercial auto, workers compensation, and certain specialized risks is typically not included in a standard BOP. Depending on your business, you may need additional policies to address those exposures.
Who May Benefit from a Business Owners Policy
A BOP is generally intended for small to medium-sized businesses across a wide range of industries. Common examples include retail shops, restaurants and cafes, professional offices, salons and spas, contractors, photographers, consultants, and many other types of service-based or product-based businesses.
Not every business qualifies for a BOP. Some industries with higher risk profiles may need to purchase commercial general liability and property coverage separately rather than through a bundled policy. An independent insurance agent can help you determine whether a BOP is the right fit for your business.
Optional Coverages That May Be Added to a BOP
Many carriers allow businesses to enhance a BOP with optional endorsements. These may include coverage for data breach and cyber liability, equipment breakdown, hired and non-owned auto, employment practices liability, and other industry-specific protections. The availability of these add-ons will depend on the carrier and your specific business type.
Purchasing a BOP is often more cost-effective than buying general liability and commercial property insurance as two separate policies. However, the right approach depends on your specific situation. An independent agent can compare options and help you decide which structure may work best for your business and your budget.
What Affects the Cost of a Business Owners Policy
The cost of a BOP can vary based on a number of factors. These may include the type of business you operate, the size of your physical location, the value of your business property and inventory, your annual revenue, your claims history, and your location. Businesses in higher-risk industries or locations may face higher premiums than those in lower-risk categories.
How to Get a Business Owners Policy
Working with an independent insurance agent is one of the most effective ways to find the right BOP for your business. An independent agent can compare options from multiple carriers, help you understand what each policy is intended to cover, and make sure you are not paying for coverage you do not need while also making sure important gaps are addressed.
If you are ready to explore whether a BOP may be right for your business, you can get started by requesting a quote below.
Get a Business Insurance Quote
Frequently Asked Questions About Business Owners Policies
Does a BOP include workers compensation?
No. Workers compensation is a separate type of coverage and is not included in a standard Business Owners Policy. If you have employees, you will likely need to purchase workers compensation coverage separately, and it may be required by law in your state.
Does a BOP cover my company vehicles?
No. Commercial auto insurance is separate from a BOP. If you or your employees use vehicles for business purposes, commercial auto coverage is intended to address that exposure.
Can I get a BOP if I work from home?
Home-based businesses may qualify for a BOP in some cases, though options may be more limited than for businesses with a dedicated commercial space. Some carriers offer endorsements to a homeowners policy for small home-based businesses as an alternative. An agent can help you evaluate your options based on your specific situation.
Is a BOP the same as general liability insurance?
No. General liability insurance is one component of a BOP, but a BOP also includes commercial property coverage. General liability insurance can also be purchased as a standalone policy if a bundled BOP is not the right fit for your business.
Talk to an Agent About Your Business Insurance Needs
Every business is different, and the right insurance solution depends on your specific situation. Whether a Business Owners Policy is the right fit for you, or whether you need a combination of standalone policies, an independent insurance agent can help you sort through your options and find coverage that is intended to protect your business the way you need it to.