Business

Business Owner's Policy explained

General liability, property, workers' comp and the industry-specific coverages owners miss.

3 minute readBusiness

Quick answer

A Business Owner's Policy (BOP) bundles general liability, commercial property, and business interruption into one package at a lower price than buying them separately. It is designed for small, low-hazard businesses — offices, retail shops, small service firms — and can be extended with endorsements.

What you need to know

What is inside a BOP

Liability, property, and loss of income, typically with a shared set of limits and deductibles.

What is not

Workers' compensation, commercial auto, professional liability, and cyber are separate policies.

Eligibility rules

Carriers set size, revenue, and hazard-class limits. Larger or riskier operations move to a commercial package.

Common mistakes

  • Setting property and income limits from rounded-down guesses instead of real numbers.
  • Skipping hired and non-owned auto because the business owns no vehicles.
  • Signing contracts that require limits or wording the policy does not provide.
  • Letting subcontractor certificates lapse, which shows up at audit.
  • Treating insurance as a one-time purchase while the business keeps changing.

When to talk to an agent

Talk to an agent before signing a lease or a major contract, when you hire your first employee, when revenue or payroll changes materially, and any time you add a service, location or vehicle.

Frequently asked

This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.

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