Complete Guide — Updated August 2026
Complete Guide to Business Owners Policy (BOP): Coverage, Costs & Who Needs It — 2026
A Business Owners Policy (BOP) bundles General Liability and Commercial Property insurance into a single, discounted policy designed for small to mid-size businesses. BOPs are typically 15–25% cheaper than buying GL and property separately and are the most cost-effective coverage solution for most small businesses.
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A Business Owners Policy (BOP) bundles General Liability and Commercial Property insurance into a single, discounted policy designed for small to mid-size businesses. BOPs are typically 15–25% cheaper than buying GL and property separately and are the most cost-effective coverage solution for most small businesses.
What It Covers ✓
- ✓General Liability — third-party injury and property damage
- ✓Commercial Property — your building, equipment, furniture, and inventory
- ✓Business Interruption — lost income if forced to close due to a covered loss
- ✓Equipment Breakdown (as an endorsement on most policies)
- ✓Hired and Non-Owned Auto (endorsement available)
- ✓Electronic Data Liability (endorsement available)
What It Does NOT Cover ✗
- ✗Workers' Compensation (separate policy required)
- ✗Commercial Auto (separate policy required)
- ✗Professional Liability / E&O (separate policy required)
- ✗Flood and earthquake (separate policies required)
- ✗Cyber liability (usually requires separate policy or endorsement)
- ✗Losses from businesses with more than 100 employees or $5M+ revenue (use CPP instead)
Who Needs Business Owners Policy (BOP)?
- →Small retail shops and boutiques
- →Restaurants and cafes (under 100 employees)
- →Professional offices (accountants, consultants, agencies)
- →Service businesses with a physical location
- →Small contractors with a shop or warehouse
- →Any small business with property to protect
How Much Does It Cost?
Small retail / office (solo)
$500–$1,200/year
Restaurant / food service
$1,500–$4,000/year
Contractor with shop
$1,200–$3,500/year
Professional services office
$600–$2,000/year
Key Terms to Know
BOP Eligibility
Not every business qualifies. Most insurers require: revenue under $5M, fewer than 100 employees, limited operations on a single premises, and industries that are not high-hazard.
Business Interruption
Covers lost net income and continuing expenses (like rent and payroll) while you cannot operate due to a covered loss. Usually kicks in after a 72-hour waiting period.
Replacement Cost
Pays to replace damaged property at current prices. Actual Cash Value (ACV) pays replacement cost minus depreciation. RCV coverage costs more but protects against underinsurance.
Endorsements
Add-ons to a BOP that extend coverage — equipment breakdown, data breach, hired auto, employee dishonesty. Common and affordable additions.
How to Get Business Owners Policy (BOP)
Inventory your physical assets — equipment, inventory, improvements — to set property limits
Confirm BOP eligibility with your carrier (revenue, size, industry)
Add key endorsements: equipment breakdown, data breach, hired auto
Get Business Owners Policy (BOP) Today
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