Business owners policy (BOP) explained

A business owners policy, or BOP, bundles several core coverages a small business needs into one package, usually at a lower cost than buying them separately. It is a common starting point for small and mid-sized businesses.

What a BOP includes

Most BOPs combine general liability, which covers third-party injury and property damage, with commercial property coverage for your building, equipment, and inventory. Many also include business interruption coverage for lost income after a covered event.

What it does not include

A BOP typically excludes workers' compensation, professional liability, and commercial auto, which are added separately. It is a foundation, not a complete program.

Who it fits

BOPs are designed for smaller, lower-risk businesses that meet the insurer's size and industry criteria. Larger or higher-risk operations may need standalone policies instead.

Frequently asked questions

＋ What does a BOP include?

Most bundle general liability and commercial property, and often business interruption coverage. It combines core coverages a small business needs into one package.

＋ What is not covered by a BOP?

A BOP usually excludes workers' compensation, professional liability, and commercial auto, which are purchased separately. It is a foundation rather than a complete program.

＋ Is a BOP cheaper than separate policies?

Bundling the core coverages in a BOP is often less expensive than buying them individually, which is part of its appeal for small businesses.

Educational content only — not legal, financial, or insurance advice. Requirements and pricing vary by state.

Bundling core coverages for a small business