·5 min read·
What Is a Business Owner’s Policy (BOP)? A Plain-English Guide
A BOP bundles the two policies every small business needs into one discounted package. Here is what is in it, what it costs, and who needs one.
A Business Owner’s Policy — usually called a BOP — is the most popular insurance product for small businesses in America. Here’s what it actually is.
What a BOP Includes
- General Liability — pays for slip-and-falls, property damage you cause, and lawsuits from third parties
- Commercial Property — covers your building, inventory, equipment, and furniture
- Business Interruption — replaces lost income if a covered event shuts you down
What a BOP Does NOT Include
- Workers Compensation (separate policy, required by law)
- Commercial Auto (separate policy)
- Professional Liability / E&O
- Cyber Liability
Who Should Buy a BOP
Most small businesses with fewer than 100 employees and under $5M in revenue qualify for a BOP. Retail, service, restaurants, professional offices, and contractors all use them.
How Much Does a BOP Cost?
Typical small business pricing: $500 – $1,500/year. The bundling discount is usually 10–15% versus buying GL and Property separately.