What it is
A Business Owner's Policy, often called a BOP, is a commercial lines product that bundles several common coverages into a single policy. Typically this includes general liability, commercial property, and business interruption (sometimes called business income) coverage.
General liability is generally designed to address certain claims of bodily injury or property damage to others arising from business operations. Property coverage generally relates to a business's buildings, equipment, inventory or other physical assets. Business interruption coverage generally relates to lost income when a covered event temporarily disrupts operations.
What is actually included, and what is excluded, varies by carrier, state and the type of business. A BOP is a commercial product, so it is separate from personal auto, home, life or health insurance. Your policy declarations and forms show what applies to you.
How it’s traditionally been approached
Traditionally, small and mid-sized businesses have used a BOP as a convenient way to gather core coverages under one policy and one renewal date, rather than managing several separate policies.
Eligibility has often depended on factors such as the type of business, its size and its operations. Some businesses find a BOP fits well, while others with more specialized or higher-risk operations use separate commercial policies instead. Neither approach is right for everyone.
Other commercial coverages, such as workers' compensation, commercial auto, professional liability, surety bonds or directors and officers (D&O) coverage, are commonly handled separately from a BOP. Some can be added by endorsement or purchased as stand-alone policies, depending on the carrier and state.
How the right agent may help
An independent agent licensed for the commercial lines you need, and in your state, may help you understand whether a BOP is a reasonable fit for your business. Agents are licensed for specific lines and states, so it is fair to ask about both.
A conversation is generally a chance to describe how your business operates: what you own, where you work, who visits, and what would happen if you had to pause operations. An agent may use that to explain options and point out questions worth asking. Nothing about this process guarantees any particular coverage outcome.
Helpful questions include: What does this policy include and exclude? How is business interruption defined and how long does it generally apply? What would a lender or landlord need to see, such as a certificate of insurance? What other policies might I need alongside it? Does this agent work with multiple carriers?
The bigger picture
Running a business carries a lot of weight, and uncertainty about what is protected can add to everyday stress. Understanding your coverage in plain terms may bring some peace of mind and let you focus more on the work and people you care about.
Insurance is one piece of a bigger picture that also includes cash flow, planning and your own wellbeing. If the strain of ownership is affecting your health, resources such as Providers.plus may help you explore support options. There is no single right way to approach protecting a business.
Keep in mind
- This page is education only and is not insurance, legal, tax or financial advice.
- Coverage, exclusions, eligibility and availability vary by carrier, line and state, so read your policy declarations carefully.
- Speak with an agent licensed for the specific commercial lines and states involved; one license does not cover every line or state.
- Bundling or switching policies does not guarantee savings or claim approval, and Policy Valet is an independent directory, not a professional advisor.
Agents
We’re welcoming founding agents for business owner's policy (bop) now. Get matched or list your practice.
Frequently asked questions
What is a Business Owner's Policy (BOP)?
A Business Owner's Policy is a commercial insurance package that generally combines general liability, property coverage and business interruption coverage in one policy. It is designed with small businesses in mind. Exact terms vary by carrier and state, so review the declarations and forms.
What does a BOP typically include?
A BOP typically includes general liability, commercial property and business interruption coverage. Some carriers allow optional endorsements for additional needs. What is covered and excluded depends on the specific policy.
What is not usually covered by a BOP?
Coverages such as workers' compensation, commercial auto and professional liability are commonly written separately from a BOP. Some may be available through endorsements or other policies, depending on the carrier and state. A licensed agent can explain how your policy treats them.
Who can get a Business Owner's Policy?
Eligibility generally depends on factors like the type of business, its size and its operations. Some businesses qualify and others are directed to different commercial policies. A licensed commercial agent can explain what carriers may consider.
Will a lender or landlord require a BOP?
Some lenders and landlords require proof of certain coverages, and a BOP is one way businesses meet those requirements. Requirements differ, so check your lease or loan documents. An agent may help you provide a certificate of insurance.
Does a BOP save money compared to separate policies?
Not necessarily. A BOP is often a convenient way to combine coverages, but bundling does not guarantee savings, and the right choice depends on your business. An independent agent may help you compare options without any promise of a particular result.
Educational resource. Policy Valet shares general information and connects people with independent agents. It is not professional advice. Talk with a qualified professional about your own situation.