Business Owner's Policy
A Business Owner’s Policy (BOP) combines general liability and commercial property insurance into one package. It’s a cost-effective option compared to buying each policy separately.
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Who Should Consider a Business Owner's Policy?
If you own or rent a workspace, having a BOP is a wise choice to protect your business from unexpected risks. This policy is designed for small businesses that operate in a commercial space, whether it’s an office or another type of business property.
A BOP combines general liability insurance with commercial property coverage, offering essential protection against customer accidents, financial losses, and unexpected incidents like fires or burglaries. Many client contracts also require coverage, making it even more important.
If you work directly with the public and have valuable assets, this policy is a must-have. It ensures your business stays secure while meeting legal and contractual obligations.
Is your business eligible for a business owner’s policy?
To qualify for BOP savings, businesses typically must have:
- A low-risk industry
- A small commercial space
- Fewer than 100 employees
- Less than $1 million in annual revenue
Additional Coverages to Consider
Protect your business from unexpected risks with these essential coverages:
General Liability Insurance
fCovers customer injuries, property damage, and advertising claims. Helps with legal costs and is often required for leases and contracts.
Under this plan
Customer injuries
Business interruption incidents
Accidental damage to customer property
Workers’ compensation insurance
Covers medical expenses and lost wages for work-related injuries or illnesses. Required in most states for businesses with employees.
Under this plan
Employee medical expenses
Disability benefits
Workplace injury lawsuits
Commercial auto insurance
Protects business vehicles by covering accident-related legal costs, medical bills, and property damage.
Under this plan
Car accidents
Vandalism and theft
Weather damage
Cyber Liability Insurance
Covers expenses from cyberattacks, data breaches, and legal fees, ensuring your business stays secure online.
Under this plan
Data breach investigations
Customer notification expenses
Fraud monitoring services
What Does a Business Owner's Policy Cover?
A business owner’s policy (BOP) includes both general liability insurance and commercial property insurance, often called business hazard insurance. This combined coverage helps protect small businesses from different risks, covering both liability and property damage.
Specifically, a BOP covers:
Third-party bodily injury
if a customer gets injured at your business, the general liability insurance part of a BOP can help cover medical expenses or legal costs if they file a lawsuit.
Third-party property damage
If a customer’s property gets damaged at your business, this policy can help with repairs, replacements, or legal fees if they sue.
Product liability
If your business manufactures, sells, or distributes products that cause harm, a BOP can protect against related lawsuits.
Advertising injuries
If someone sues for libel, slander, or copyright infringement, the liability portion of a BOP helps cover lawsuit expenses.
Business property damage
The commercial property insurance part helps repair or replace business property damaged by fire, theft, or certain weather events.
Cost of a Business Owner's Policy
A business owner’s policy (BOP) typically costs around $57 per month, though 42% of Eagle Nation small business owners pay less than $50 per month. The actual cost depends on several factors, including:
- Amount of coverage needed
- Value of business property
- Industry and type of business operations
- Business Location
- Number of employees
- Claims history
What a Business Owner’s Policy Does Not Cover?
A business owner’s policy (BOP) helps cover many business risks, but it does not provide complete protection for every situation. Specifically, a BOP does not include coverage for:
Employee injuries
Businesses need workers’ compensation insurance to cover medical expenses, physical therapy, and lost income for injured employees. This coverage is required in most states.
Employee discrimination lawsuits
Employment practices liability insurance (EPLI) helps with lawsuit expenses for claims like harassment, discrimination, and wrongful termination.
Business vehicles
Commercial auto insurance is necessary for vehicles owned or used primarily for work and is required in most states.
Destroyed payment records
If customer records are lost in a fire or other incidents, it could affect outstanding payments. This is not covered unless a commercial property insurance policy includes an accounts receivable endorsement.
Two ways to start your coverage
Quotes online
Talk to an agent
Verified BOP coverage reviews
Hear from customers like you who purchased insurance.
FAQs about a Business Owner's Policy
Yes! A business owner's policy (BOP) is flexible, allowing businesses to add extra coverages, known as endorsements, to meet their specific needs. Many businesses bundle their BOP with additional business insurance options, such as:
Business Interruption Insurance
Also called business income insurance, this coverage helps replace lost income and covers extra expenses when a business is temporarily disrupted.
Business Renter’s Insurance
This insurance bundle protects a rented business space from fire, vandalism, or weather damage, similar to the renter’s insurance used for apartments.
Contractor’s Tools and Equipment Insurance
A type of inland marine insurance, this covers business property in transit and protects general contractors and handymen who transport tools and equipment to different job sites.
Data Breach Insurance
Also known as cyber insurance, it helps retail stores and other businesses recover losses when a data breach exposes customer data, such as credit card numbers.
Electronic Data Processing (EDP) Insurance
This coverage protects computers, backup systems, and electronic data processing equipment against data loss due to a power surge, fire, or natural disaster.
Electronic Data Liability Coverage
Expands property damage coverage to include accidental data loss, such as physical damage to a customer’s computer, hard drive, or storage device.
Employee Dishonesty Insurance
Protects businesses from employee theft, including cash register theft or forged checks.
Employment Practices Liability Insurance (EPLI)
Covers legal costs if an employee sues for wrongful termination, harassment, or other employee rights violations.
Hired and Non-Owned Auto Insurance (HNOA)
Provides coverage for leased or personal vehicles occasionally used for business purposes, like visiting clients.
Liquor Liability Insurance
Essential for bars and restaurants, this covers legal claims if they serve alcohol to an intoxicated customer who then causes harm or property damage.
Professional Liability Insurance
Also known as errors and omissions (E&O) insurance, this protects businesses from client disputes over professional services.
Commercial Umbrella Insurance
For businesses that serve large clients or operate in high-risk industries, this extends general liability limits, ensuring more coverage for expensive lawsuits.
Adding these coverages to a BOP helps business owners create a customized insurance plan that protects their company from unexpected risks.
General Liability Insurance
Businesses that interact with the public rely on general liability insurance to cover third-party lawsuits related to:
- Bodily injuries
- Property damage
However, general liability does not cover fire, theft, or other incidents that damage your business property.
Business Owner’s Policy (BOP)
A BOP includes general liability coverage but also protects your business property, covering:
- Fire, theft, and weather-related damage
- Loss or damage to buildings, equipment, and inventory
A business owner’s policy (BOP) combines general liability and commercial property insurance in one package, making it an affordable option for small businesses and startups. It provides essential protection without the higher costs of separate policies.
On the other hand, a commercial package policy (CPP) is designed for larger businesses or those with higher risks, offering more flexibility by allowing multiple liability coverages to be bundled together. A CPP also includes the option to add endorsements (riders) to customize coverage for specific needs.
While a BOP is budget-friendly, a CPP comes at a higher average cost of $90 per month, depending on industry risks.
Home businesses, freelancers, and small businesses can easily obtain proof of insurance when purchasing a business owner’s policy (BOP). With Eagle Nation, business owners can get proof of insurance instantly online on the same day they start their policy.
Traditional insurance agencies may take weeks to issue a certificate of commercial liability insurance, which can delay important contracts. Eagle Nation allows you to quickly provide proof for leases or agreements. If additional documentation is required by a bank or lessor, an agent can assist you.
A business owner’s policy (BOP) has certain exclusions. It typically does not cover property damage from natural disasters like earthquakes, hurricanes, tornadoes, and floods. To protect against these risks, you’ll need a special endorsement.
BOPs also exclude legal defense costs for lawsuits involving intentional copyright infringement, willful negligence, or deliberate harm to customers or property. Additionally, alcohol-related incidents are not covered unless you add a liquor liability endorsement.
To ensure your policy meets your needs, consult a licensed insurance agent.
For more details on a business owner’s policy (BOP), check out our frequently asked questions.
If you need guidance on coverage options, endorsements, or other business insurance policies, consult an Eagle Nation agent for expert advice.
I recently purchased a Business Owner’s Policy (BOP), and it has given me peace of mind knowing my business is protected from unexpected risks. It combines general liability and property insurance, making it an affordable, all-in-one solution. Highly recommend for small business owners!