Business Owners Policy Insurance (BOP) is a bundled policy that includes general liability, commercial property, and business interruption coverage. It’s a cost-effective option for small to midsize businesses.
Business Owners Policy (BOP) Insurance
What Is a Business Owners Policy?
A Business Owners Policy (BOP) bundles several essential insurance coverages into a single, cost-effective package tailored for small and mid-sized businesses. It typically includes General Liability, Commercial Property, and Business Interruption Insurance.
BOPs simplify risk management by combining core protections under one policy—making them ideal for businesses that want broad coverage with streamlined administration and savings.
Who Needs Business Owners Policy?
BOPs are designed for small to medium-sized businesses that:
- Operate from a physical location (retail store, office, warehouse)
- Have customer foot traffic or client interactions
- Own business equipment or inventory
- Want affordable, bundled coverage
Common industries include:
- Retail and boutiques
- Offices and consultants
- Restaurants and food service
- Artisan contractors and service businesses
- Healthcare and wellness providers
What Does Business Owners Policy Cover?
A BOP typically includes:
- General Liability Insurance: Covers third-party bodily injury, property damage, and personal/advertising injury.
- Commercial Property Insurance: Covers damage to owned buildings, equipment, inventory, and furniture from events like fire, theft, or vandalism.
- Business Interruption Insurance: Helps cover lost income, payroll, and ongoing expenses if operations are suspended due to a covered property loss.
Optional endorsements may include:
- Cyber Liability
- Equipment Breakdown
- Hired & Non-Owned Auto Liability
- EPLI (Employment Practices Liability)
What Doesn't Business Owners Policy Cover?
BOPs are broad but still exclude:
- Professional liability claims (needs E&O Insurance)
- Workers’ Compensation
- Commercial Auto coverage
- Flood and earthquake damage (requires separate policies)
- High-risk or complex industries (which may need custom programs)
Optional endorsements may include:
- Cyber Liability
- Equipment Breakdown
- Hired & Non-Owned Auto Liability
- EPLI (Employment Practices Liability)
How Much Does Business Owners Policy (BOP) Cost?
Key Cost Factors:
BOP pricing is typically more affordable than buying
each policy separately. Costs are influenced by:
- Industry and business location
- Building size and value of contents
- Claims history
- Annual revenue and payroll
Typical Cost Range:
- Small business BOPs: $500 – $1,200/year
- Medium businesses: $1,200 – $2,500/year
- Optional coverages may add $100 – $500 per endorsement
Risk Management Tips
- Perform annual reviews of business assets and revenue
- Keep inventory and equipment records up to date
- Install fire suppression and security systems
- Maintain good housekeeping and safety practices on-site
- Consider adding extra endorsements to close potential gaps
Talk to An Expert
Our dedicated experts are ready to provide tailored insurance solutions to clients across a wide range of industries and specialized services.
Schedule a consultation to see how Alliance Risk can reduce your insurance risk.
– We look forward to partnering with you.