What Is a Business Owner's Policy (BOP)?

A Business Owner's Policy (BOP) bundles three essential coverages into a single, discounted package:

General Liability — third-party injury and property damage
Commercial Property — your building, equipment, and inventory
Business Income — lost revenue if you're forced to close temporarily

Buying a BOP is typically 20-30% cheaper than purchasing these coverages as separate policies.

Who Should Get a BOP?

BOPs are designed for small to mid-sized businesses with:

A physical location (office, retail store, warehouse)
Equipment, inventory, or furnishings to protect
Revenue under $5-10M (varies by carrier)
Fewer than 100 employees

Common BOP buyers include retail stores, restaurants, professional offices, service businesses, and small contractors.

What Does a BOP Cover?

Coverage	What It Protects
General liability	Customer injuries, property damage claims
Building coverage	Your owned or leased building
Business personal property	Equipment, inventory, furniture
Business income	Lost revenue during covered closures
Extra expense	Additional costs to stay operational

BOP vs. Separate Policies

A BOP simplifies your insurance by combining coverages into one policy with one premium and one renewal date. Most small businesses save significantly compared to buying GL + property + business income separately.

How Much Does a BOP Cost?

Most small businesses pay $500–$3,500 per year for a BOP, depending on location, industry, property value, and revenue.