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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Business Owners Policy (BOP) Frequently Asked Questions

A BOP is ideal for most small and mid-size businesses with a physical location, owned property or inventory, and client-facing operations. If your business has no physical location and no property, a standalone GL may be sufficient. If you have professional liability exposure or employees, you'll need additional policies beyond the BOP.