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