Business Owner’s Policy

What Does a BOP Include?

Standard Business Owners Policy typically includes the following core coverages:

1. General Liability Insurance

This protects your business from third-party claims of bodily injury, property damage, and personal/advertising injury. For example:

• A customer slips and falls in your store
• A product you sell damages a customer’s property
• Your advertising inadvertently infringes on someone else’s copyright

It covers legal fees, settlements, and court-awarded damages.

2. Commercial Property Insurance

This covers the physical assets your business owns or leases—such as your building (if owned), equipment, furniture, inventory, and signage. Property insurance protects against events like:

• Fire
• Theft
• Vandalism
• Certain types of weather damage (depending on policy specifics)

Whether you own or rent your workspace, this coverage helps you repair or replace damaged business property.

3. Business Interruption Insurance (Loss of Income)

Many BOPs include or allow you to add business interruption coverage. If a covered event (like a fire or storm) forces you to temporarily shut down or relocate, this coverage helps replace lost income and cover ongoing expenses such as rent, payroll, and utilities.

Optional Add-Ons (Endorsements)

You can tailor a BOP to your specific industry and risks by adding optional coverages, such as:

• Cyber liability – protection against data breaches or hacking incidents
• Equipment breakdown – coverage for machinery or systems that fail
• Professional liability (E&O) – for businesses that give advice or provide professional services
• Employee dishonesty – protection against theft or fraud by employees
• Hired and non-owned auto liability – for businesses using vehicles they don’t own

These endorsements help make your BOP a more customized and complete protection plan.

Who Is Eligible for a BOP?

A Business Owners Policy is designed for small to medium-sized businesses that meet certain eligibility requirements, which vary by insurer but often include:

• Fewer than 100 employees
• Less than $5 million in annual revenue
• A low-risk industry (retail, restaurants, professional services, etc.)
• A physical business location, office, or storefront

Examples of businesses that commonly qualify include:

• Retail shops and boutiques
• Coffee shops and cafes
• Hair salons and barbershops
• Independent contractors
• Accountants, consultants, and real estate offices
• Medical or dental practices

Why Choose a BOP?

A BOP offers several benefits compared to buying coverages separately:

• Cost savings – Bundling policies is usually more affordable
• Simplicity – One policy, one premium, one renewal date
• Comprehensive protection – Covers both liability and property risks
• Customizable – Add coverage specific to your business needs

How Much Does a BOP Cost?

The cost of a Business Owners Policy depends on:

• Your industry and risk level
• Business location
• Value of your property and assets
• Coverage limits and deductibles
• Any additional coverages selected

For many small businesses, a basic BOP can start as low as $500 to $1,200 per year, depending on coverage and risk factors.

Final Thoughts

If you own a small business and want a streamlined, affordable way to protect both your assets and your liability, a Business Owners Policy is a smart solution. It helps safeguard your property, your income, and your reputation—all under one simple policy.

A licensed insurance agent can help you determine if your business qualifies for a BOP and tailor the coverage to your specific needs. In today’s unpredictable world, having the right protection isn’t a luxury—it’s a necessity.