A Business Owners Policy (BOP) is an insurance package designed for small and mid-size businesses that bundles general liability and commercial property coverage into a single, discounted policy. For businesses with both liability exposure and physical property to protect, a BOP costs 15–25% less than buying the two coverages separately.
What a BOP Covers
A standard BOP includes general liability insurance and commercial property insurance. GL covers third-party bodily injury, property damage, personal injury, and advertising injury. Commercial property covers your building, business personal property, and business income protection if a covered event forces you to close. Most BOPs include basic business interruption coverage — typically 12 months of lost income.
Who Should Buy a BOP?
Ideal BOP candidates include retail stores, restaurants, offices with client-facing operations, cleaning companies, small contractors with equipment, salons and spas, gyms, and most brick-and-mortar service businesses. Businesses that may NOT benefit include home-based businesses with minimal property and businesses primarily seeking E&O coverage.
BOP vs. Standalone GL: Cost Comparison
Standalone GL might run $100/month and commercial property $80/month — total $180/month separately. A BOP for the same store typically runs $130–$150/month, saving $360–$600 per year.
What a BOP Does NOT Cover
A BOP does NOT include workers' comp, commercial auto, professional liability (E&O), flood or earthquake coverage, or cyber liability (though many carriers offer cyber as an add-on).
How to Know If a BOP Is Right for Your Business
Ask yourself: Do I have liability exposure? Do I have business property worth $5,000+? Do I operate from a fixed location? If yes to all three, a BOP is almost certainly the right choice.