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.