A businessowners policy, or BOP, packages the main coverages a small business needs into one policy: property for the building and contents, general liability, and business income. Carriers price it as a bundle, so it usually costs less than buying those coverages separately.
The Insurance Information Institute describes BOPs as aimed at small businesses, and notes that some classes, such as many restaurants, may not qualify. Each carrier sets its own eligibility by class, size, square footage and revenue.
How it shows up in an agency
A new prospect runs a 3,000-square-foot retail store. The account manager checks which carriers’ BOP appetites include that class in that state, then quotes several of them. Many small commercial carriers now return BOP quotes in minutes through an API or a commercial quoting platform. Carrier appetites by line are on our BOP page.
What a BOP doesn’t cover
The Triple-I lists the usual gaps: professional liability, commercial auto, workers compensation, and health or disability coverage. A contractor with trucks and employees still needs a commercial auto policy and a workers comp policy alongside the BOP. Many BOPs offer optional endorsements such as hired and non-owned auto, employment practices or cyber, but limits are often modest.
Common confusion
- BOP vs. CPP. A commercial package policy also combines property and liability, but each part is written and rated separately with more flexibility. Larger or harder-to-place accounts that don’t fit BOP eligibility usually go to a CPP.
- One limit, two meanings. Liability on a BOP has its own aggregate limit. Property has separate limits per location. Read both on the declarations.
- Business income is included, but limited. Check the period of restoration and whether it’s “actual loss sustained” or a dollar limit. See business income.