Business Owners Policy (BOP)

A BOP combines commercial property insurance and general liability into one policy. Many BOPs also include business interruption coverage, which helps replace lost income if your operations are disrupted by a covered event like a fire or severe weather.

BOPs are designed for small to mid-size businesses with lower-risk profiles. Eligibility depends on your industry, revenue, number of employees, and location. Retail shops, offices, and service businesses commonly qualify. High-risk industries like construction may not be eligible for a BOP.

Usually yes. Bundling property and liability in a BOP typically costs less than purchasing each policy separately, making it a cost-effective option for qualifying businesses. However, if you need coverage beyond what a BOP includes, you may need to add individual policies.

General liability is a single coverage type that protects against third-party bodily injury, property damage, and advertising claims. A BOP bundles general liability together with commercial property coverage (and often business interruption) into one policy at a combined price.

A BOP typically excludes workers compensation, commercial auto, professional liability, and health benefits, which are all separate policies. Flood and earthquake generally require additional coverage as well. Many businesses pair a BOP with one or two standalone policies to cover the gaps.

Often, yes. Many providers offer endorsements that add coverages like data breach response, equipment breakdown, hired and non-owned auto, or professional liability to a BOP. Endorsements vary by provider, so it helps to compare what each includes.

No law requires a BOP specifically, but the coverages inside it are often required in practice. Landlords commonly require liability and property coverage in leases, and client contracts may require proof of liability limits. A BOP is frequently the simplest way to meet those requirements in one policy.