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A business owners policy, or BOP, bundles general liability and commercial property coverage into one policy for small businesses. Insurers sell it to lower-risk businesses such as retail shops, offices, and small restaurants, and the bundle usually costs less than buying the two coverages separately.
What a BOP includes
General liability covers third-party injury and property damage claims. Property coverage covers your building if you own it, plus equipment, inventory, and furniture against fire and theft. Many BOPs also include business interruption coverage, which pays ongoing expenses while you are shut down after a covered loss.
What sets the price
Your industry, location, payroll, revenue, and the value of your property all factor in. A shop with fryers prices differently from an accounting office. So do your claims history and the limits and deductible you choose. For a wider view of pricing across policy types, see how much small business insurance costs.
What a BOP does not cover
It does not replace workers compensation, commercial auto, or professional liability. Flood and earthquake are usually excluded or added separately. If clients rely on your advice or services, read business liability insurance types to see where professional liability fits.
New owners can use new business insurance checklist to sequence purchases. A BOP is often the first policy because landlords and lenders ask for a certificate of insurance, but it should not be the only one you review.
Getting an accurate quote
Bring your property values, revenue, and payroll numbers. Guessing low produces a cheap quote and a problem at claim time, when the insurer finds the business was underinsured.
