What is a BOP (Business Owner’s Policy)?
A Business Owner’s Policy (BOP) is a package policy that bundles Commercial Property Insurance and General Liability Insurance into one. It is ideal for small to medium-sized businesses such as restaurants, wholesalers, retail stores, and contractors.
Three Core Protections of a BOP:
1. Commercial Property Insurance:
Protects the commercial buildings, tools, equipment, and inventory that you own or lease. This coverage includes property damage caused by fire, theft, windstorms, etc.
2. General Liability Insurance:
If a customer or visitor is injured on your premises, or if your business operations cause property damage or advertising injury to others, this coverage helps pay for compensation costs.
3. Business Interruption Insurance:Also known as "Business Income Insurance." When your business is unable to operate due to a covered disaster (such as fire or windstorms), it helps compensate for lost income and continues to cover operating costs like rent and wages.
Other Customizable Coverage Options:
Workers’ Compensation
Covers medical expenses, lost wages, and rehabilitation for employees injured in work-related accidents.
Commercial Umbrella Insurance
Provides higher liability limits to help pay for large-scale claims.
Commercial Auto Insurance
Protects you or your employees against accidents that occur while driving for business purposes.
Professional Liability
Protects against claims arising from negligence, errors, omissions, or failure to deliver promised results while providing professional services.
How Much Does a BOP Cost?
Based on experience, the average annual premium for a BOP ranges between $1,200 and $1,800 (approximately $100–$150/month). Actual costs vary based on:
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Industry and Location
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Number of employees
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Square footage and equipment value
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Claims history
Can I get a BOP if I work from home?
Yes! A BOP covers your home-based business equipment and liability for all professional operations.
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