BOP Insurance (Business Owner's Policy)

A business owner's policy, or BOP, is an insurance package designed to combine several common types of business coverage into one policy. It is often used by small and midsized businesses that have relatively straightforward insurance needs.

A typical BOP includes commercial property insurance, general liability insurance, and business income coverage. Property insurance can help protect buildings, equipment, inventory, and other business property. Liability coverage can help with certain claims involving bodily injury or property damage, while business income coverage can help replace lost income and cover certain extra expenses if a covered event temporarily interrupts operations.

Bundling these coverages into one policy can make business insurance easier to manage and may cost less than purchasing comparable policies separately. The exact coverage, limits, deductibles, exclusions, and eligibility requirements depend on the insurer and the business.

A BOP doesn't cover every risk a business may face. Coverage such as workers' compensation, commercial auto insurance, professional liability, and employee health or disability insurance generally requires separate policies or additional coverage. Businesses with specialized or higher-risk operations may also need a more customized insurance package.

Frequently asked questions

What does BOP insurance cover?

A BOP typically combines business property, general liability, and business income coverage. The exact protections depend on the policy and insurer, so businesses should review their coverage limits, exclusions, and optional endorsements carefully.

Who needs a business owner's policy?

A BOP is commonly designed for small and midsized businesses with relatively standard property and liability risks. Eligibility can depend on factors such as the type of business, size, location, revenue, and claims history.

Does a BOP include workers' compensation?

Generally, no. Workers' compensation is typically purchased separately and may be required by state law depending on the business and its employees.

Does a BOP include professional liability insurance?

Generally, no. Businesses that provide professional advice or services may need separate professional liability coverage, sometimes called errors and omissions insurance.

What is the benefit of a BOP?

A BOP puts several common business coverages into one policy, which can make insurance simpler to manage and may be more cost-effective than buying each coverage separately.