Business Owners Policy Coverage Guide: Everything You Need to Know

A Business Owners Policy (BOP) is a comprehensive insurance package designed for small and medium-sized businesses, combining general liability, commercial property insurance, and business interruption coverage into a single, cost-effective policy. This guide will walk you through everything you need to know about BOP coverage, its benefits, and how to choose the right policy for your business.

What Is a Business Owners Policy (BOP)?

A Business Owners Policy (BOP) is an insurance bundle that provides essential protection for businesses against common risks such as:
✅ Lawsuits and liability claims
✅ Property damage and theft
✅ Loss of income due to business interruptions

By bundling these coverages together, businesses can save money compared to purchasing separate policies while ensuring comprehensive protection.

What Does a Business Owners Policy Cover?

A BOP typically includes three primary types of coverage:

1. General Liability Insurance

Protects your business from third-party claims, including:

• Bodily injury (e.g., a customer slips and falls in your store)
• Property damage (e.g., accidental damage to a client’s property)
• Personal and advertising injury (e.g., copyright infringement, libel, or slander claims)

2. Commercial Property Insurance

Covers business-owned physical assets, including:

• Office buildings, warehouses, and retail spaces
• Business equipment, furniture, and inventory
• Damage caused by fire, theft, vandalism, or natural disasters

3. Business Interruption Insurance

Provides financial support when your business is forced to temporarily close due to a covered peril, covering:

• Lost revenue
• Employee wages
• Ongoing business expenses (e.g., rent, utilities, loan payments)

What’s Not Covered by a BOP?

While a BOP provides broad coverage, it does not include:

🚫 Workers’ Compensation Insurance – Required for employee injuries.
🚫 Professional Liability Insurance – Covers errors and omissions in professional services.
🚫 Commercial Auto Insurance – Needed for business-owned vehicles.
🚫 Cyber Liability Insurance – Protects against cyberattacks and data breaches.

If your business requires any of these coverages, you will need to purchase additional policies.

Who Needs a Business Owners Policy?

A BOP is ideal for small and medium-sized businesses that:
✅ Operate from a physical location (office, store, or warehouse)
✅ Have valuable property (equipment, inventory, or furniture)
✅ Interact with customers or clients (in-person or online)

Common businesses that benefit from BOP coverage include:
🏪 Retail stores
☕ Cafes and restaurants
🏢 Professional offices (law firms, consulting agencies, accounting firms)
🛠 Contractors and service providers
💻 Tech startups and e-commerce businesses

How Much Does a Business Owners Policy Cost?

The cost of a BOP policy depends on several factors, including:
✔ Business size and industry – Higher-risk industries may pay more.
✔ Location – Urban areas tend to have higher insurance costs.
✔ Coverage limits and deductibles – Higher limits mean higher premiums.

Average BOP Costs:

Getting a custom quote is the best way to determine the exact cost for your business.

How to Get the Best Business Owners Policy

To ensure you get the right BOP coverage at the best price, follow these steps:

✅ 1. Assess Your Risks

Identify the risks your business faces. A retail store may need theft coverage, while a restaurant may need additional liability for foodborne illnesses.

✅ 2. Compare Coverage Options

Not all BOP policies are the same. Look at:

• Coverage limits (Does it cover all your business assets?)
• Deductibles (How much will you pay out of pocket?)
• Optional add-ons (Cyber liability, professional liability, etc.)

✅ 3. Work with an Experienced Insurance Agency

At Toby Hansen Agency, we compare nearly 100 carriers to find you the best coverage at the lowest price. Whether you’re starting a new business or looking to switch insurers, we make the process easy.

Get a Business Owners Policy Quote Today

Protect your business with the right coverage! Fill out the form below for a free, no-obligation BOP insurance quote and get customized coverage in seconds.