Business Owner’s Policy (BOP)
General liability and commercial property in one package, usually for less than buying the two separately. It is the default starting point for a small business with a location and things in it.
This page is general information, not insurance advice, and it does not change any policy. Coverage varies by carrier, policy form, and state. See our disclaimer.
What a BOP generally bundles together
General liability
The same third-party injury and property damage coverage as a standalone policy, including the cost of defending claims.
Your building, if you own it
Generally intended to respond to covered damage to the structure you own and trade from.
Business personal property
What you own that stays at the location: furniture, office equipment, computers, stock and tools kept on site.
Business interruption
The part people overlook and later value most. May replace income and pay continuing expenses while a covered loss stops you trading.
Common add-ons
Equipment breakdown, spoilage, signage and a modest amount of cyber are frequently available by endorsement.
What it does not cover
A BOP is a package, not everything. These sit outside it and are bought separately.
Your employees getting hurt
Workers’ compensation is never part of a BOP. It is always a separate policy.
workers’ compensation→Mistakes in your professional work
Professional advice and services are excluded. Service businesses generally need E&O alongside.
professional liability→Vehicles used for business
A BOP does not insure autos. That is commercial auto, whether the vehicles are owned or hired.
commercial auto→Flood and earthquake
Both are typically excluded from the property side and are bought as their own policies or endorsements.
commercial property→Losses above the policy limit
When a claim exceeds the limits, an umbrella sits on top of the liability side.
commercial umbrella→When a BOP is the right shape
A BOP is designed for smaller, lower-hazard businesses. Carriers set their own eligibility, so a risk that outgrows the package moves to separate policies.
- You have a shop, studio, office or unit rather than working purely from a laptop
- You own stock, equipment or fit-out worth insuring
- A landlord requires liability, and you need property anyway
- You would struggle to pay the bills if you could not open for a month
- You are small enough to fit a carrier’s BOP eligibility, which is usually capped by revenue, square footage and class
Have a location and things in it?
Tell us what your business does and we will point you at the right market for it.
Get a quoteWhat drives the price
A BOP is priced on both halves at once: how likely you are to hurt somebody, and how much your property is worth.
What your business does
Class drives the liability half, and some classes are simply not eligible for a BOP at all.
Property values
The building if you own it, plus business personal property. Under-insuring to save premium tends to surface as a coinsurance penalty at claim time.
The building itself
Age, construction type, roof, wiring and sprinklers all feed the property rate.
Location
Crime, weather exposure and distance to a fire hydrant and station all count.
Revenue
Used on the liability half, and also to check you still fit the carrier’s BOP eligibility.
Claim history
Prior property and liability losses both count, and frequency matters as much as size.
Frequently asked questions
What is a business owner’s policy?
It is a package that combines general liability with commercial property, and usually business interruption, in a single policy for a single premium. It is aimed at smaller, lower-hazard businesses, and is generally cheaper than buying the same coverages separately.
Is a BOP the same as general liability?
No. General liability is one component of a BOP. If you have no premises and nothing to insure, standalone general liability may be all you need. Once you own stock, equipment or a fit-out, the package usually makes more sense.
Does a BOP include workers’ compensation?
No. Workers’ compensation is always a separate policy, and in most states it is required by law once you have employees.
What is business interruption coverage?
It may replace lost income and pay continuing expenses such as rent and payroll while a covered loss stops you trading. It is often the part of the package that matters most after a serious property loss, and the part people forget they have.
Am I eligible for a BOP?
Carriers set their own rules, usually around class of business, revenue, square footage and how many locations you have. Higher-hazard operations and larger businesses generally move to a commercial package policy instead.
Does a BOP cover flood or earthquake?
Generally no. Both are typically excluded and need their own policy or endorsement. This is one of the most common surprises after a loss.
How much does a BOP cost?
It depends on your class, your property values, the building, your location and your claim history, so no single figure applies. Request a quote for your own situation.
Other coverages: general liability, commercial property, workers’ compensation, commercial umbrella.
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