Business Owners Policy (BOP)

A BOP tends to be a strong fit if any of the following describe your business:

• You are a small to mid-sized business looking for straightforward, foundational coverage
• You already know you need both general liability and commercial property insurance
• You want to simplify insurance management to a single policy and renewal date
• Your business operates in a lower-to-moderate risk industry that typically qualifies for BOP coverage
• You want essential protection without the complexity of assembling several separate policies

A BOP is designed as a starting foundation - many businesses build on top of it with additional coverage like workers' compensation, commercial auto, or professional liability as their specific needs require.

• General Liability - Covers bodily injury, property damage, and advertising injury claims arising from your business operations - the same coverage available as a standalone policy.
• Commercial Property - Covers your building (if owned), business personal property, and equipment against covered perils like fire, theft, and storm damage.
• Business Income & Extra Expense - Replaces lost income and covers extra operating costs if a covered property loss forces a temporary shutdown.
• Optional Add-On Coverages - Many insurers allow you to add coverages like cyber liability or equipment breakdown directly onto your BOP, rather than purchasing them separately.

A BOP is a strong foundation, but it does not replace every policy a business may need:

• Employee injuries - this requires workers' compensation insurance, which is not included in a standard BOP
• Professional errors or negligence claims - this requires a separate professional liability (E&O) policy
• Commercial vehicle accidents - this requires a separate commercial auto policy
• Data breaches or cyberattacks - this requires cyber liability coverage, sometimes available as a BOP add-on
• Flood or earthquake damage - these require separate policies, just as they do outside a BOP

This is exactly why a BOP is often described as a foundation rather than a complete solution - most businesses layer additional policies on top of it based on their specific operations.

• Cyber Liability Add-On - Adds data breach and cyber incident coverage directly to your BOP, often at a lower cost than a standalone policy.
• Equipment Breakdown - Adds coverage for mechanical or electrical equipment failure, which standard property coverage typically excludes.
• Employment Practices Liability - Adds protection against claims like wrongful termination, discrimination, or harassment brought by employees.
• Data Compromise Coverage - A more limited alternative to full cyber liability, covering basic notification and response costs after a data incident.

Premiums are calculated based on several specific factors:

• Your business name, industry classification, and years in operation
• Annual revenue and number of employees
• Building square footage, construction type, and estimated property value (if applicable)
• A description of your business operations and any subcontractor use
• Your claims history for the past three to five years

• Commercial landlords, as a condition of signing a lease
• Lenders, as a condition of financing a commercial property or business loan
• Client contracts, particularly those requiring both liability and property coverage proof
• Franchise agreements, which often specify minimum combined coverage requirements

• Typically more affordable than purchasing general liability and property coverage separately
• Simplified management with a single policy, renewal date, and insurer
• Coverage for both liability and property claims from a single, coordinated policy
• Optional add-ons available to expand protection as your business grows

A BOP is an efficient starting point for many businesses, but a few details are worth understanding clearly:

• A BOP does not include workers' compensation, commercial auto, or professional liability - these require separate policies.
• Eligibility is typically limited to small and mid-sized businesses in lower-to-moderate risk industries.
• As your business grows, you may need to transition from a BOP to separately underwritten policies with higher limits.
• It is worth confirming exactly which add-ons are included versus available only as optional endorsements.

If your business needs both general liability and commercial property coverage - which describes most small and mid-sized businesses - a BOP is very likely the most efficient way to get both.

Our team can review your business and determine whether you qualify for a BOP, and which add-ons make sense for your specific operations.