Article Reviewed by a licensed insurance professional: Sam Meenasian (CA dept of insurance license #0F75955).
Estimated reading time: 4 minutes
A Business Owner’s Policy, or BOP, is a packaged insurance policy designed for many small businesses. It usually combines commercial property insurance, general liability insurance, and business income coverage in one policy. For eligible businesses, a BOP can be a cost-effective way to bundle core protection. Availability, endorsements, and limits vary by carrier and state, so always review the actual policy language.
What a BOP Usually Includes
Commercial property insurance. This coverage can protect your building if it is scheduled on the policy, plus business personal property such as furniture, equipment, inventory, and supplies, when damaged by a covered cause of loss. Business personal property does not include the building itself. Buildings and permanently installed fixtures are handled under building coverage.
General liability insurance. This helps protect your business against third-party claims of bodily injury, property damage, and personal and advertising injury. BOP liability coverage may also include products-completed operations and damage to premises rented to you, subject to the policy’s terms and limits.
Business income coverage. Also called business interruption insurance, this can help replace lost income and pay certain ongoing expenses if a covered property loss temporarily stops your operations.
Some additional property protections may be available. Depending on the carrier and form, you may also see limited coverage for items such as accounts receivable, valuable papers and records, or certain outdoor property. These features and limits vary, so they should not be promised without checking the policy.
Common Add-On Coverages
Inland marine insurance. This is designed for tools, equipment, or property that moves over land or is kept off-site. It is commonly added when standard premises-based property coverage is not enough.
Cyber or data breach coverage. Businesses that store customer, employee, or payment data may need cyber coverage to help with breach response, privacy liability, extortion, and related costs. Many BOPs offer this as an endorsement or separate policy option.
Equipment breakdown coverage. This can help repair or replace covered equipment that suffers certain electrical or mechanical breakdowns. It is commonly added by endorsement.
Hired and non-owned auto liability. If employees drive their own cars for work, or your business rents or borrows vehicles, this add-on can help with bodily injury and property damage liability claims. It does not replace commercial auto insurance and does not pay to fix the employee’s or rented vehicle.
Employment practices liability insurance. EPLI can help with claims involving wrongful termination, harassment, discrimination, and similar employment-related allegations. Some carriers include limited EPLI in their BOP, while others offer it as an endorsement or separate policy.
Liquor liability. If your business sells, serves, or distributes alcohol, you may need liquor liability coverage. This is different from host liquor exposure under a standard liability policy.
Crime or employee dishonesty coverage. Businesses that handle cash, inventory, or sensitive financial transactions may also want crime or employee dishonesty coverage. This is often added by endorsement or addressed through a separate crime policy.
What a BOP Usually Does Not Include
A standard BOP usually does not include workers’ compensation, professional liability, or commercial auto insurance. Cyber coverage is also often added separately rather than built in. Depending on your operations, you may also need liquor liability, crime or fidelity coverage, garagekeepers, or other specialized protection.
How Much Does a BOP Cost?
BOP cost varies by business type, location, employees, property value, limits, endorsements, and claims history. The most reliable way to get pricing is to request a quote based on your own business details.
Who May Qualify for a Business Owner’s Policy?
Many eligible small businesses that own or rent space, have business property, and face everyday liability exposure may qualify for a BOP. These policies are generally used by smaller businesses with relatively straightforward risk profiles, but eligibility varies by carrier and state. Some higher-risk operations may need a different package or additional specialized coverage. Auto repair businesses, for example, may use a BOP with some carriers, but they often still need garagekeepers and commercial auto coverage as part of a fuller insurance plan.
Get a Quote
Request a BOP quote from USA Business Insurance and review the core coverages, optional endorsements, and industry-specific risks before you bind coverage
