Business Owners Policy | B.O.P.

A business owners policy may include commercial property and general liability coverage. Having to obtain multiple different policies becomes complicated and costly so business owners may opt to purchase a bundled business owner's policy.

Are you looking for free insurance quotes?

secured lock Secured with SHA-256 Encryption

Eric Stauffer is a former insurance agent and banker turned consumer advocate. His priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.

Full Bio →

Written by Eric Stauffer
Founder & Former Insurance Agent Eric Stauffer

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

Full Bio →

Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Oct 31, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

Business StorefrontBusiness owners may find themselves needing a variety of insurance products, including commercial property and general liability coverage.  Purchasing so many separate types of policies can become complicated and costly, which is why some business owners prefer to purchase a bundled “business owner’s policy” instead.  Although these policies are not the right choice for everyone, they can be a perfect solution for many small businesses.

What Does a Business Owners Policy Cover?

Business owner policies, or BOPs, are generalized insurance policies offered to small business owners.  In general, your company must employ fewer than 100 people to qualify, as larger companies will require more extensive coverage.

A BOP covers many of the things a specialized policy would cover:

  • Structure damage for the company building
  • General liability claims
  • Equipment breakdown protection
  • Professional liability, including protection for libel and slander
  • Rented vehicle coverage

You may be able to pick and choose among these coverage types to craft a policy that will suit your company’s needs.  For example, if you operate a storefront, you will need different coverage than if you operate out of your home.  Understanding these coverages enables you to tailor the policy to fit the needs of your business, and an insurance representative can help you create the right bundle.

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

secured lock Secured with SHA-256 Encryption

Who Needs a BOP?

Small business owners who do not plan to purchase separate commercial insurance policies should consider buying a BOP.  Although the protection offered by a BOP is not as thorough as that offered by more specialized policies, it does provide coverage against many common perils at a reasonable cost.

In order to qualify for a BOP, your business will need to fit within certain size parameters.  In addition to having less than 100 employees, the organization must make less than $5 million in annual profits.  Businesses larger than this will require more protection than a BOP will provide.  If you run a very small business as a sole proprietor or partnership, the BOP may be overkill. You’ll need to speak with your insurance company to confirm how much coverage you really need.

How Much Do They Cost?

In general, a BPO will be more affordable than holding multiple separate types of insurance.  For example, a business owner might need to buy a commercial property policy, a general liability policy and a professional liability policy.  If you purchase a BPO, you can have all three in one.  This can help keep costs down.

The exact price of your BPO will depend on your risk level, the amount of coverage you purchase, and other factors.  To determine the actual cost of the policy, you’ll need to obtain a personalized quote that will take all of these factors into account.  That way, you can be assured that you’re getting the coverage you need at a price that will fit within your organization’s budget.

Are you looking for free insurance quotes?

Your one-stop online insurance guide. Get free quotes now!

secured lock Secured with SHA-256 Encryption