Business Owner's Policy

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What is a 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 businesses need a BOP?

All small businesses that want to gain protection from unexpected financial losses should consider a business owner’s policy. Many businesses only purchase general liability insurance, which does not protect your own business property. A BOP covers your customers’ property as well as your own business property.

A business owner’s policy combines two policies at a lower rate than if purchased separately:

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 and your business property from damage or loss.

A BOP is ideal for a small business that wants protection against common lawsuits and coverage for business property such as a building or valuable equipment. Read more about business owner’s policy coverage.


Business owner’s policy eligibility

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

  Home business Freelancer Small business
Third-party liability A customer visiting your home slips on your front step and files a lawsuit. A client requests proof of coverage in case you damage his equipment. Your commercial lease requires general liability insurance.
Advertising injuries You use social media and want protection against accusations of libel. You design logos and want protection from copyright infringement. A competitor accuses you of defamation in an advertising campaign.
Property damage You want to protect inventory kept at your home. You want protection for a valuable computer system. You invest in state-of-the-art equipment and want to protect it.


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

View business owner’s policy costs.

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Business owner's policy: Further reading