What is a business owner’s policy?
- Business owner’s policy
A business owner’s policy, or BOP, combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
When do small businesses need a BOP?
All small businesses that want protection from unexpected financial losses should consider a business owner’s policy. Many companies only purchase general liability insurance, which does not protect business property. A BOP bundles general liability insurance with commercial property insurance for more complete coverage.
A business owner's policy bundles these two insurance policies at a discount:
General liability insurance
General liability insurance protects against common business risks, such as customer injury or damage to client property. It’s often required when signing a commercial lease or a client contract.
Commercial property insurance
Commercial property insurance protects your building, equipment, and inventory from damage or loss.
A BOP is ideal for a small business that wants protection against common lawsuits and coverage for valuable business property, such as a building or specialized equipment. Read more about business owner’s policy coverage.
Business owner's policy eligibility requirements
Not all businesses are eligible for a business owner’s policy. Businesses that are eligible for a BOP typically have:
- Low industry risk
- Fewer than 100 employees
- Less than $1 million in annual revenue
- A small commercial space
Business owner's policy protections
Business owner’s policy costs
A business owner’s policy is an affordable option for small businesses that need liability and property insurance. Several factors affect policy costs, including:
- Industry and risk
- Value of business property
- Coverage limits
- Location
- Number of employees
Customize a BOP to fit your business
One of the best aspects of a business owner's policy is its flexibility. You can add endorsements to your business owner’s policy that cover specific risks, for example:
- Business interruption insurance
- Cyber liability insurance
- Hired and non-owned auto insurance
- Liquor liability insurance
Talk to an Insureon agent to discuss tailoring a BOP to match your business.
Learn more about a business owner’s policy
- How do I choose between general liability insurance and a business owner’s policy?
- What are the eligibility requirements for a business owner’s policy?
- How do I get a certificate of liability insurance?
Find more answers to frequently asked questions about business owner’s policy.