Business Owners Policy (BOP)
Liability + property + lost income, bundled at a better price than buying separately.
What is bop insurance?
A Business Owners Policy bundles the coverages most small businesses need — general liability, commercial property, and business interruption — into a single policy that typically costs 10–30% less than buying each coverage separately. It's the workhorse policy for retail shops, offices, restaurants, contractors, and professional practices.
The often-overlooked gem inside a BOP is business interruption coverage: if a fire or covered disaster shuts you down, it replaces your lost income and pays ongoing expenses — rent, payroll, loan payments — while you rebuild. For many small businesses, the income loss from downtime is more dangerous than the property damage itself.
What it covers
- Everything general liability covers: third-party injury, property damage, advertising injury
- Your building (if owned) and business personal property — equipment, inventory, furniture, tenant improvements
- Lost income and ongoing expenses while you're shut down by a covered loss (business interruption)
- Extra expenses to keep operating — temporary location, equipment rental, expediting costs
- Common add-ons: hired/non-owned auto, employee dishonesty, equipment breakdown, spoilage, and basic cyber
What it doesn't cover
- Workers' compensation (required separately in nearly every state)
- Professional liability / E&O
- Owned business vehicles (commercial auto)
- Flood and earthquake without separate policies
- Larger or higher-risk businesses may exceed BOP eligibility and need a commercial package policy instead
Coverage components explained
1General Liability
The same third-party injury and property-damage protection as a standalone GL policy, typically at $1M/$2M limits, with certificates and additional-insured endorsements available.
2Commercial Property
Covers your building (if owned), leasehold improvements, equipment, inventory, and furniture against fire, theft, vandalism, and wind. Insure at replacement cost and update limits as you grow.
3Business Interruption
Replaces net income and pays continuing expenses during a covered shutdown. Pay attention to the restoration period and whether the limit reflects your actual monthly revenue — we model this with you.
4Equipment Breakdown
Covers sudden mechanical or electrical failure of HVAC, refrigeration, computers, and production equipment — losses standard property coverage excludes.
5Optional Endorsements
Hired and non-owned auto (employees running errands in personal cars), employee dishonesty, outdoor signs, spoilage for food businesses, and entry-level cyber liability.
When you need bop coverage
- You run a small-to-mid-size business with a physical location, equipment, or inventory
- You lease commercial space — your lease requires liability and often property coverage
- Your business couldn't survive 3–6 months of lost income after a fire or disaster
- You currently carry GL only — you're likely one covered property loss away from a major gap
- You want one policy, one renewal, and one premium instead of three
Frequently asked questions
What's the difference between a BOP and general liability?
GL covers harm to third parties only. A BOP includes GL and adds coverage for your own property and your lost income if a covered event shuts you down. If you have any equipment, inventory, or premises — or revenue you can't afford to lose — a BOP almost always makes more sense, often for only a few hundred dollars more per year.
How much does a BOP cost?
Most small businesses pay $600–$3,500 per year depending on industry, revenue, location, and property values. Bundling typically saves 10–30% versus separate policies, and we compare BOP quotes across multiple carriers to find the right structure at the best price.
Does a BOP cover my business if I work from home?
Home-based businesses often assume homeowners insurance covers them — it generally doesn't beyond trivial limits, and business activity can even jeopardize homeowners claims. A BOP (or an in-home business endorsement, depending on scale) closes that gap.
Is my business eligible for a BOP?
BOPs are designed for low-to-moderate risk businesses, generally under carrier thresholds for revenue, square footage, and class of business. If you've outgrown BOP eligibility, we'll build a commercial package policy with the same coverages tailored to your operation — that's a sign of growth, not a problem.
Let's find the right bop coverage for you
Answer a few questions and a licensed advisor will compare quotes across our carrier lineup — usually back to you within one business day.