What Business Owners Should Know About a Business Owners Policy (BOP)

A Business Owners Policy, commonly known as a BOP, combines essential insurance coverages into a single, convenient package. This type of policy is designed to help small and mid-sized businesses protect their assets while simplifying insurance management.

What Is a Business Owners Policy?

A Business Owners Policy bundles multiple core coverages into one policy. It is typically more cost-effective than purchasing each coverage separately.

A BOP usually includes:

• General liability insurance
• Commercial property insurance
• Business interruption coverage.

This combination provides broad protection for common business risks.

Who Is a Business Owners Policy Designed For?

BOPs are designed for small to mid-sized businesses with relatively predictable risks. Eligibility depends on business size, industry, and location.

Common businesses that benefit from a BOP include:

• Retail stores
• Offices and professional services
• Restaurants and small hospitality businesses
• Light manufacturing and service companies

Businesses with higher risk profiles may need standalone policies instead.

What a BOP Typically Covers

A Business Owners Policy offers protection against many everyday risks.

Coverage often includes:

• Property damage from covered events such as fire or theft
• Liability claims involving bodily injury or property damage
• Lost income due to covered business interruptions

Coverage limits and exclusions vary by policy.

What Is Not Covered by a BOP?

While a BOP provides broad protection, it does not cover every risk. Certain exposures usually require additional policies or endorsements.

Common exclusions include:

• Professional liability claims
• Workers’ compensation coverage
• Commercial auto insurance
• Cyber liability and data breaches

Understanding exclusions helps businesses identify coverage gaps.

Customizing a Business Owners Policy

Many BOPs can be tailored with endorsements to better match business needs.

Optional additions may include:

• Equipment breakdown coverage
• Cyber liability insurance
• Employment practices liability
• Crime insurance.

Customization helps create more comprehensive protection.