A Business Owner's Policy (BOP) combines business property and business liability insurance into one business insurance policy. BOP insurance helps cover your business from claims resulting from things like fire, theft or other covered causes of loss. Business owner's insurance also helps cover claims that could arise from your business operations, including claims of bodily injury, property damage, and advertising injury.

A Policy Customized to Your Business

Businesses can tailor their Business Owner's Policy (BOP) to meet their unique needs by adding coverage options, such as:

A BOP can also be custom-made to fit industry-specific businesses, which makes it a strong fit for protecting companies of any size — especially small businesses. Because a BOP is designed to cover the risks most businesses share, it does not extend coverage for professional services (professional liability is typically covered under a separate errors and omissions policy).

Customizing your BOP is an important first step in insuring your business. Small business owners should do this from the start to help protect against losses and damages early on.

What Is Included in a Business Owner's Policy?

A Business Owner's Policy (BOP) bundles business property and liability insurance into one policy, helping cover claims of bodily injury and property damage to your building, equipment or inventory. Coverages typically included in a BOP are:

  • Commercial Property Insurance — Also called business property insurance, this helps protect your owned or rented building, tools and the equipment you use to run your business.
  • General Liability Insurance — This helps protect your business and its assets in the event of a lawsuit for things like negligence, bodily injury, property damage, libel and slander.
  • Business Interruption Coverage — Also known as business income insurance, this helps replace your lost income if you're unable to operate because of covered property damage. It can also help cover ongoing operating expenses, such as rent and payroll, while your business recovers.
  • Workers' Compensation Insurance — Most state laws require you to carry this coverage to help compensate employees for expenses associated with work-related injuries or illnesses, such as medical bills, rehabilitation and lost wages.

Who Needs a Business Owner's Policy?

If you rent or own workspace, or have client contracts that require general liability insurance, you'll likely need a Business Owner's Policy (BOP). A BOP can help your business if:

  • You have a physical location
  • There's a possibility of you getting sued
  • You have assets that could get stolen or damaged