Business Owner's Policy (BOP)
One policy that covers the two things most small businesses need
General liability plus commercial property, packaged at a lower price than buying them separately — with business income built in.
A business owner's policy combines general liability and commercial property into a single package designed for small and mid-size businesses with predictable risk. Carriers bundle them because it is more efficient to underwrite one account than two, and they pass a meaningful part of that efficiency back in price. For a typical office, shop, restaurant, or contractor, a BOP is usually 10% to 25% cheaper than assembling the same coverage piece by piece.
The BOP is not a stripped-down product. Most forms include business income and extra expense coverage automatically — the same coverage that keeps you solvent while a damaged location is repaired — plus useful extensions like debris removal, signage, and limited off-premises property. From there you add what your operation actually needs: equipment breakdown, cyber liability, hired and non-owned auto, employment practices liability, or liquor liability for a restaurant.
Not every business qualifies. Carriers set eligibility by industry, revenue, square footage, and building characteristics, and higher-hazard operations are steered to a standalone package instead. That is a question of appetite, not quality, and it moves between carriers — one insurer's decline is another's target class. Because we are independent, we shop it rather than accepting the first answer.
What's covered
- General liability. Third-party bodily injury, property damage, and personal and advertising injury with defense costs.
- Property and contents. Your building or tenant improvements plus equipment, inventory, and furniture at replacement cost.
- Business income. Lost profit and continuing expenses while you are shut down by a covered property loss.
- Extra expense. The cost of temporary space, rented equipment, and expedited shipping that shortens the shutdown.
- Products and completed operations. Claims from products you sold or work you already finished.
- Common add-ons. Cyber, equipment breakdown, EPLI, hired and non-owned auto, and liquor liability endorsements.
What it doesn't cover
- Employee injuries. Workers' compensation is always a separate policy.
- Owned vehicles. Company autos and trucks require commercial auto coverage.
- Professional services. Errors in advice or professional work need E&O, which is not included in a BOP.
- Flood and earthquake. Both remain excluded and require separate placement.
- High-hazard operations. Large habitational, heavy manufacturing, and certain contracting classes fall outside BOP eligibility.
How claims actually play out
The kitchen fire on a Tuesday
A grease fire spread into the hood system and ductwork at a 40-seat restaurant. Structural damage was moderate; the smoke damage was not, and the health department kept the doors closed.
Outcome: Property paid $142,000 for equipment and repairs, and business income covered ten weeks of lost profit and continuing rent at $58,000 — the piece that kept the owner from closing permanently.
The break-in before the holidays
A boutique was burglarized overnight in early December. Thieves took inventory and the point-of-sale hardware and damaged the storefront glass and door frame.
Outcome: The BOP paid $37,400 for stolen stock and equipment plus the glass and frame, and the store reopened in four days with expedited replacements funded by extra expense coverage.
The customer and the display shelf
A freestanding display tipped when a shopper leaned on it, striking her shoulder and knocking a heavy fixture onto the floor.
Outcome: The liability side paid $22,000 in medical costs and settlement and $7,500 in defense — a claim that would not have touched a property-only policy.
What drives your price
- Industry class
- Eligibility and rate both start with your classification; food service and contracting price differently than an office.
- Property values
- Building, contents, and tenant improvement limits are the largest single driver of the property portion.
- Revenue and square footage
- Both scale the liability portion and determine whether you qualify at all.
- Building characteristics
- Construction type, roof age, sprinklers, and alarms move the rate substantially.
- Endorsements selected
- Cyber, EPLI, and equipment breakdown each add premium but are far cheaper bundled than standalone.
Business Owner's Policy questions
Ready to price business owner's policy?
One application, shopped to up to 10 A-rated carriers. A licensed agent presents the options side by side — usually within one business day.