- A business owner’s policy, better known as BOP insurance, is one of the most comprehensive types of business insurance policies.
- BOPs typically combine general liability & commercial property insurance into a single policy which can work out cheaper than buying two separate policies.
- Not all businesses can qualify for a BOP. These plans are specialized for small businesses operating in low-risk environments with less than 100 employees.
- On average, BOPs cost around $684 per year but can cost as low as $27 per month.
- We recommend calculating the cost of BOP insurance online using a quote tool. You’ll get quotes for plans from America’s top insurance providers.
When you buy something using links found on our site, we may earn a small affiliate commission. This content is reviewed & supervised by The Los Angeles Times.
Business Owner Policy – Best BOP Insurance for 2024
BOP insurance starts as low as $27/month*
*Applies to quotes made through Insureon only. Average monthly premium calculations are estimates and may vary by state, insurance provider, and the nature of your business. Where required or allowed by state law, insurance taxes, service fees, and other surcharges may be included and billed separately from the premium.
Quotes available through:
On This Page
- Key takeaways
- Our top recommended business owner policies
- What is included in a business owner’s policy (BOP)?
- What does BOP insurance cover?
- What does a BOP not cover?
- Who needs a business owner’s policy?
- Top reasons to get BOP
- What is the difference between a BOP and a commercial package policy (CPP)?
- How much does a BOP cost?
- Business owner’s policy FAQ
- Related topics
On This Page
- Key takeaways
- Our top recommended business owner policies
- What is included in a business owner’s policy (BOP)?
- What does BOP insurance cover?
- What does a BOP not cover?
- Who needs a business owner’s policy?
- Top reasons to get BOP
- What is the difference between a BOP and a commercial package policy (CPP)?
- How much does a BOP cost?
- Business owner’s policy FAQ
- Related topics
Leigh Morgan - Personal Finance
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Reviewed By
Blake Esken - Los Angeles Times
Whether you’re expanding an existing business or launching a company from scratch, it’s important that your insurance matches your business needs.
BOPs are a great way for small business owners to get broad-reaching coverage and save money.
BOP insurance, which bundles several types of coverage into one package, can make it easier to address your business insurance needs. Before you purchase coverage, learn more about how BOP insurance can help you protect and build your enterprise.
Our top picks for the best business owner policy insurance
- The Hartford: BOP - General Liability - Professional Liability - Workers’ Comp - Sole Proprietors - Commercial Auto - Fidelity Bond
- Chubb: BOP - General Liability - Professional Liability - Workers’ Comp - Sole Proprietors
- Acuity: BOP - General Liability - Workers’ Comp - Sole Properietors - Commercial Auto
- Nationwide: BOP - General Liability - Workers’ Comp - Sole Proprietors
- Travelers: BOP - Professional Liability - Workers’ Comp - Sole Proprietors
- Hiscox Insurance: BOP - General Liability - Professional Liability
Our top recommended business owner policies
Company Name
Types of Insurance Offered
AM Best Financial Strength Score
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BOP - General Liability - Professional Liability - Workers' Comp - Sole Proprietors - Commercial Auto - Fidelity Bond
BOP - General Liability - Professional Liability - Workers' Comp - Sole Proprietors
BOP - General Liability - Workers' Comp - Sole Properietors - Commercial Auto
BOP - Professional Liability - Workers' Comp - Sole Proprietors
What is included in a business owner’s policy (BOP)?
A business owner’s policy, or BOP insurance, combines multiple types of insurance coverage into one wide-reaching policy for your small business.
A business owner’s policy typically includes two main types of insurance:
In some cases, you may also be covered for business income and extra expense insurance which can cover lost income and reimburse expenses due to property damage.
BOPs can be useful to small business owners because they are easier to manage versus having multiple policies and they can be slightly cheaper than buying each insurance type separately.
What does BOP insurance cover?
Some of the main things a BOP can cover include:
- Damage to buildings and property at your company’s premises
- Injuries to third parties on your premises
- Damage to property owned by third parties on your premises
- Damage or injury to third parties resulting from a product you sold
- Personal injury due to something your company said, advertised, or wrote
- Lost income due to business interruptions resulting from property damage
Here is a look at BOP coverage in greater detail:
General liability, product liability, & advertising liability
General liability is the most important component of a business owner’s policy. This type of insurance protects you if someone is injured or has their possessions damaged or stolen while on your property, your BOP will cover the damage.
For example, if someone falls while walking up the ramp to your building’s entrance and injures themself, general liability in your BOP would pay for their medical bills and protect against a resulting lawsuit.
The same is true if someone is injured off-premises by a product you sold them. Lastly, if someone claims slander, defamation, libel, invasion of privacy, or IOP infringement due to something you have mentioned or written, then your BOP can cover you from a wrestling lawsuit.
Commercial property & business’ personal property
Business property insurance protects your company’s buildings and their contents, ensuring you don’t have to start over from scratch if your property is lost, damaged, stolen, or destroyed by an event covered in your policy. For example, if a natural disaster causes one of your buildings to collapse, you can use the funds from the insurance settlement to rebuild.
Business interruption & lost earnings
Business interruption insurance is another important part of a business owner’s policy which typically falls under the property portion of your BOP. Also known as business income and extra expense insurance (BIEE), this type of coverage replaces some of your lost income if you can’t operate your company due to a covered event. For example, if your property is severely damaged in a fire, the business interruption portion of your BOP policy would kick in, reimbursing you for some of your lost earnings.
Additional coverage options
A BOP policy already combines three types of business insurance into one, but there are additional options to consider. Many insurance companies allow small business owners to purchase extra coverage via an insurance endorsement to their policy or with umbrella insurance.
-
Crime insurance:
Small business owners may want to consider purchasing crime insurance, also known as a fidelity bond, which gives you extra protection against employee theft, employee dishonesty, and other criminal matters. -
Flood insurance:
Just like home insurance, floods are not covered under commercial property insurance. Therefore, you may want to have flood insurance in place for extra protection. Even if you’re nowhere near the ocean, the water from a broken pipe can do a lot of damage to your company’s building and equipment. -
Spoiled merchandise:
If your company handles refrigerated or frozen items, consider adding merchandise spoilage coverage to your standard business insurance package. This type of coverage reimburses you for items spoiled due to power outages and equipment failures.
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What does a BOP not cover?
Despite being comprehensive, BOPs don’t include coverage offered by the following types of insurance:
Workers’ compensation: Almost all states require employers to purchase workers’ compensation coverage, which pays medical bills and other expenses associated with workplace illnesses and injuries. BOP insurance doesn’t include workers’ comp coverage, so you’ll need to purchase a separate policy.
Professional liability:
A BOP plan includes general liability insurance, but it doesn’t include professional liability coverage. Also known as errors and omissions (E&O) coverage, professional liability insurance protects you if a client sues you for errors, omissions, or negligent acts.
Commercial Auto insurance:
Your BOP insurance won’t cover any auto accidents involving your employees or your vehicles. You’ll need a separate business auto or commercial auto policy if you want this type of coverage.
Cyber liability insurance:
If your company’s or client’s sensitive data is lost or stolen due to a data breach, cyber liability can cover costs related to the fallout, clean-up, and resulting lawsuits.
Inland marine insurance:
Property insurance doesn’t cover your merchandise or equipment when it is stored off-site, used at a job site, or in transit. Inland marine insurance can cover your property in all of these scenarios.
Health insurance:
If you want to provide health insurance for your employees, you must purchase it separately. It doesn’t come with a BOP package.
Fidelity bonds:
Fidelity bonds protect against financial losses caused by the dishonest or fraudulent actions of your employees
If you are interested in getting these types of coverage with a BOP, you may have the option to add select coverages to your plan for an extra fee.
See plan options here using our quote generator.
Who needs a business owner’s policy?
Most business owners can benefit from having a BOP, although it is especially well-appointed for small businesses, such as an e-commerce business online and ones with physical locations. BOPs may not be a good fit for larger businesses, ones that have complex operations, or businesses that operate off-site, such as landscapers.
As a general rule of thumb, a BOP could be a good fit if your company:
- Has 100 employees or less
- Has a brick-and-mortar place of operations
- Makes under 1 million dollars a year in revenue
- Works in a low-risk industry
BOP coverage is ideal for companies in the following industries:
- Personal Care & Pet Care
- Food & beverage businesses
- Retail & Grocery
- Property rental / Commercial real estate
- Technology & IT Services
- Warehousing / Wholesaling / Manufacturing
- Religious & Cultural Organizations
- Printers & Publishers
Top reasons to get BOP
- It’s often cheaper than buying separate policies
- It includes 2 of the most important broad-reaching coverages
- It is easier to manage than having multiple policies
- You can often add other types of coverage to a BOP plans
Reasons not to get a BOP
- You may be able to get a more customizable commercial package insurance
- Your business may carry too much risk or not need physical property insurance
- Your company may be too large or growing quickly and require other types of coverage
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What is the difference between a BOP and a commercial package policy (CPP)?
A business owner policy (BOP) and a commercial package policy (CPP) are similar as they combine multiple types of insurance into one plan. However, a CPP is more customizable and allows you to add several different types of insurance under one plan.
For example, you may be able to create a policy with professional liability insurance, commercial auto coverage, and inland marine insurance. BOPs generally only offer general liability and commercial property insurance. Therefore, CPPs offer more flexibility.
In general, Commercial Package Policies are a great fit for larger businesses or ones with higher risk, whereas a BOP may be a better fit for smaller businesses.
To find out what type of insurance is a better fit for you, consider speaking to an insurance advisor.
How much does a BOP cost?
Based on Insureon sales data BOP insurance costs an average of $684 per year. That said, BOPs can start as as low as $27 per month for some businesses.
Get a BOP for as low as $27/month*
*Applies to quotes made through Insureon only. Average monthly premium calculations are estimates and may vary by state, insurance provider, and the nature of your business. Where required or allowed by state law, insurance taxes, service fees, and other surcharges may be included and billed separately from the premium.
If this seems expensive, keep in mind that buying general liability and property insurance separately can be far more expensive than bundling them through a single BOP policy. Therefore, a BOP policy is well worth the investment.
Ultimately, what you pay for BOP insurance depends on several factors such as:
-
Industry:
Insurance companies base their premiums on the level of risk involved in writing a policy for your company. If you do high-risk work, you may pay more for your coverage. -
Claims history:
The more insurance claims you file, the higher your rates are likely to be. -
Number of employees:
When it comes to pricing BOP insurance, the number of employees you have makes a big difference. -
Coverage limits:
If you choose the highest coverage limits, you’ll pay more for BOP insurance than someone who chooses the lowest coverage limits.
For more info, try our BOP calculator to see how much a BOP plan could cost your business
Business owner’s policy FAQ
Differences between a business owner’s policy and general liability insurance
Business owner’s policies can cover the same things as a general liability policy but are more comprehensive. In fact, BOPs have general liability included in the policy. With a standard BOP package, you usually get general liability coverage and commercial property insurance coverage bundled together for a lower price than buying each separately.
Does a business owner's policy cover rented business property?
Yes, in most cases a BOP will cover a rented building as well as other property under your control. This can also include rented machinery or equipment at your business’ main premises or other property that was in your care that is damaged, lost, or stolen.
What is the difference between a BOP and a package policy?
A package policy is customizable and includes several types of coverage bundled together, but it doesn’t have standardized components. For example, your package policy could include commercial auto insurance, cyber insurance, and worker’s comp. Conversely, BOP includes two standard types of coverage: general liability & commercial property insurance.
Leigh Morgan is a seasoned personal finance contributor with over 15 years of experience writing on a diverse range of professional legal and financial topics. She specializes in subjects like navigating the complexities of insurance, savings, zero-based budgeting and emergency fund development.
In the last 5 years, she’s authored over 300 articles for credit unions, digital banks, and financial professionals. Morgan is also the author of “77 Tips for Preventing Elder Financial Abuse,” a book focused on helping caregivers protect the elderly from financial scams.
In addition to her writing skills, she brings real-world financial acumen thanks to her previous experience managing rental properties as part of a $34 million real estate portfolio.
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