Coverage Guide — Updated August 2026
Business Owners Policy (BOP) — Bundled Small Business Insurance
A Business Owners Policy (BOP) bundles general liability and commercial property into a single, discounted package — typically saving 15–25% vs. buying each policy separately. BOPs are designed for small and mid-size businesses and are the most cost-effective way to build a commercial insurance foundation.
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A BOP bundles general liability and commercial property into a single, discounted package — typically saving 15–25% vs. buying each separately. It's the most cost-effective baseline for most small and mid-size businesses.
What It Covers ✓
- ✓Third-party bodily injury and property damage (GL component)
- ✓Personal and advertising injury (GL component)
- ✓Business property — equipment, inventory, furniture (property component)
- ✓Tenant improvements and betterments (property component)
- ✓Business income and extra expense after a covered loss
- ✓Products and completed operations liability
- ✓Optional add-ons: cyber, EPLI, professional liability endorsements
- ✓Equipment breakdown (often bundled or available as an endorsement)
What It Does NOT Cover ✗
- ✗Workers compensation (always a separate policy)
- ✗Commercial auto (separate policy required)
- ✗Professional liability / E&O (available as add-on or separate policy)
- ✗Flood and earthquake (separate policies required)
- ✗Employee dishonesty / crime (crime endorsement required)
- ✗Employee health insurance (separate benefit)
Who Needs a Business Owners Policy?
- →Small and mid-size businesses with a physical location
- →Retail stores and restaurants
- →Service businesses with both liability exposure and business property
- →Contractors who rent office or storage space
- →Healthcare and professional services practices
- →E-commerce businesses with inventory
- →Businesses looking for the most cost-efficient baseline commercial coverage
How Much Does It Cost?
Home-based service business
$400–$1,000/yr
Small retail or office tenant
$700–$2,000/yr
Restaurant or food service
$1,500–$5,000/yr
Contractor with shop and equipment
$1,200–$4,000/yr
Key Terms to Know
GL Component
The general liability portion of the BOP — covers third-party bodily injury, property damage, and personal/advertising injury claims from your business operations.
Property Component
Covers your business personal property, tenant improvements, and the building if you own it — against fire, theft, vandalism, and other covered perils.
Business Income Coverage
Pays lost revenue while your business is closed due to a covered property loss — often called business interruption insurance. Critical for businesses that can't operate during repairs.
Extra Expense Coverage
Pays costs above normal operating expenses required to minimize income loss during a covered loss — like renting temporary space or equipment to keep operating.
Endorsement / Rider
An add-on to a BOP that expands coverage. Common endorsements include cyber liability, EPLI, professional liability, equipment breakdown, and data compromise coverage — allowing you to customize the BOP to your specific risk profile.
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