Business Owner's Policy (BOP)
A Business Owner's Policy (BOP) packages general liability and commercial property coverage into a single policy, usually at a lower combined price than buying each separately. It's built for small and mid-sized businesses with a physical location — a storefront, office, or warehouse — that want broad protection without assembling several policies individually. Many BOPs can also add business interruption coverage, which replaces lost income if a covered event (like a fire) forces you to close temporarily.
Business Owner's Policy: what it costs, what it covers, who needs it
Rates vary by state, revenue, and claims history — always compare multiple quotes.
Not legally required, but commonly required by commercial landlords as a lease condition.
What's covered
- General liability (third-party injury and property damage)
- Commercial property (building, if owned, plus contents, inventory, and equipment)
- Business interruption / lost income if a covered event forces a shutdown
- Optional add-ons: equipment breakdown, data breach, professional liability riders
What's excluded
- Workers' compensation (always sold separately)
- Commercial auto
- Flood and earthquake damage (need separate policies)
- Professional errors & omissions unless added as a rider
Bundles general liability and commercial property into one policy, usually cheaper than buying each separately.
What drives the price
- Building value and contents/inventory value
- Location and its exposure to fire, weather, and crime
- Industry risk level and annual revenue
- Which optional endorsements are added
Real claim example
A kitchen fire damages a small restaurant's dining room and forces a two-week closure.
The BOP covers repair costs and the lost income during the closure — roughly $85,000 total.
Business Owner's Policy is commonly required for businesses in this situation. At $60–$200/mo, it is one of the most cost-effective ways to protect against a potentially six-figure claim.
Where to get a quote
We don't have partnerships with these providers yet — these are direct links to their public sites, not affiliate links.
Digital-first small-business insurer with instant online quotes across most trades.
Long-established commercial carrier with broad small-business coverage lines.
Well known for commercial auto, with bundled small-business coverage options.
Larger-limit carrier for businesses with higher-value property or liability needs.
Full-line commercial carrier with strong property and umbrella offerings.
Online broker offering side-by-side small-business insurance comparisons.
FAQs
Is a BOP cheaper than buying GL and property separately?
Usually yes — bundling is the main appeal of a BOP, though very high-risk or high-value businesses may still need separate, more specialized policies.
Does a BOP cover my employees?
No — workers' compensation is always a separate policy, even when everything else is bundled into a BOP.
Can I add cyber or professional liability to a BOP?
Many carriers offer these as endorsements on top of a BOP, though a standalone policy usually gives broader coverage for higher-risk businesses.