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07 Aug 2025
Running a business especially a small one is no small feat. You're juggling day-to-day operations, managing employees (or wearing all the hats yourself), and trying to stay ahead of competition. One thing you shouldn’t have to stress about? Having the right insurance coverage to protect all that hard work.
So that's when you'd want to look into a Business Owners Policy - or BOP for short. Basically, it's like getting a combo deal that puts together the main types of insurance most small businesses actually need, all rolled into one policy that won't break the bank. We're going to walk through what exactly a BOP is, what kinds of things it'll cover (plus what it won't), and help you figure out if it makes sense for your particular business.
What is a Business Owners Policy (BOP)?
A Business Owners Policy (BOP) is a bundled business insurance package designed specifically for small to mid-sized businesses. It combines general liability insurance and commercial property insurance, and often includes business interruption insurance as well.
Instead of purchasing these policies separately, a BOP lets you group them together—usually at a lower cost than buying each one individually. It’s designed to offer broad protection against the most common risks small business owners face, such as property damage, customer injury claims, and temporary shutdowns due to covered events.
Who Needs a Business Owners Policy?
The whole point is to give you solid coverage for the stuff that actually happens to small businesses all the time - like when your property gets damaged, a customer gets hurt and decides to sue, or you have to close up shop temporarily because of something that's covered.
A BOP works really well if you've got:
A brick-and-mortar business (doesn't matter if it's an office, store, or restaurant)
A home business where you've invested in pricey equipment or have customers coming by regularly
Businesses that want simple, bundled coverage at a lower price
Retailers, contractors, consultants, bakeries, and other service-based providers
If your business owns property, interacts with the public, or could suffer income loss due to unforeseen events, a BOP might be exactly what you need.
What Does a BOP Insurance Cover?
A BOP basically bundles a bunch of important protections into one package deal. Here's what you're actually getting for your money:
Property Coverage
This part takes care of your physical stuff, like:
The building itself (assuming you own it and aren't just renting)
All your business gear - computers, tools, restaurant equipment, whatever you use
Your inventory and any supplies you keep on hand
Office furniture, fixtures, that kind of thing
Your business signs and any outdoor structures
When something bad happens to your property - we're talking fire, someone breaks in and steals stuff, vandalism, things like that - your BOP helps cover the costs to fix or replace everything. It'll even help if you need to temporarily move somewhere else while you get back on your feet.
General Liability Insurance
This is the part that saves you when other people claim you screwed something up. It covers:
Someone gets hurt at your place (like when a customer takes a tumble in your store)
You or your people accidentally mess up someone else's stuff (say your contractor puts a scratch in a client's expensive hardwood floor)
All those lawyer fees when you get sued (even when it turns out you didn't do anything wrong)
Having business liability insurance bundled into your BOP provides peace of mind—one major lawsuit could otherwise cripple a small business.
Business Interruption Insurance
Some people call this business income insurance - basically it kicks in when you have to shut down temporarily because of something that's covered. Here's what it helps with:
The money you're losing while you can't operate
Bills that keep coming even when you're closed (like paying your staff, rent, electric bill)
Costs to set up shop somewhere else temporarily
This is huge for businesses that need customers walking through the door every day to survive.
What’s Not Covered by a BOP?
A Business Owners Policy is pretty solid for the basics, but it's definitely not going to cover everything under the sun. Here's some stuff you'll need to get separately:
Workers' Compensation
If you've got employees, almost every state makes you carry workers' comp insurance. This pays for their medical bills and covers their lost wages if they get hurt while working. You can't get this through your BOP - it's a separate thing you have to buy.
Professional Liability
Also known as errors and omissions insurance, this protects against claims of negligence, missed deadlines, or substandard work. It’s a must-have for consultants, accountants, tech professionals, and anyone offering specialized advice or services.
Commercial Auto
If your business owns or operates vehicles, you’ll need commercial auto insurance. A BOP doesn’t cover accidents or damages related to work vehicles.
Cyber Coverage
With hackers going after businesses left and right these days, cyber insurance is pretty much essential if you handle customer data, take credit card payments online, or do most of your business digitally. Most BOPs don't automatically include this - you'd have to specifically ask for it to be added on.
The Good and Bad of Getting a BOP
Let's be real about what you're getting into with a Business Owners Policy:
The Good Stuff
Everything in One Place - Just one policy to deal with, one bill to pay, one renewal date to remember
Saves You Money - Way cheaper than buying all these coverages separately
Covers the Big Stuff - Takes care of the main things that actually happen to small businesses
Less Headache - You don't have to become an insurance expert to figure out what you need
The Not-So-Great Parts
Pretty Cookie-Cutter - Hard to tweak it for whatever weird risks your specific business might have
Leaves Some Holes - Still need separate policies for things like cyber protection, company vehicles, or workers' comp
Not for Everyone - If you're running a big operation or doing something risky, you'll probably need more heavy-duty coverage
How Much Does a Business Owners Policy Cost?
BOP pricing varies based on a number of factors, but here are some national averages to give you a ballpark:
According to the U.S. Small Business Administration, insurance costs can range widely depending on your industry, risk profile, and the specific coverage selected. Bundled options like a BOP can offer savings of up to 20% compared to purchasing separate policies.
Factors That Affect BOP Pricing
Business Location – Businesses in high-risk areas (for crime, weather, etc.) often pay more.
Industry Type – Riskier professions (like food service or construction) have higher premiums.
Business Size – More employees or larger buildings usually mean higher costs.
Claims History – A clean history can help lower your rate.
Should You Bundle BOP With Other Business Insurance?
Absolutely, especially if your business has specialized risks that a standard BOP doesn’t address.
When to Add More Coverage:
You have employees → Add workers' comp.
You drive for work → Get commercial auto.
You offer professional advice → Consider errors & omissions.
You store customer data → Add cyber liability.
Customizing Your BOP
Most insurance companies will let you tack on extra stuff to your BOP if you need more protection. Some things you can add:
Coverage for when your equipment just breaks down on its own
Protection for your tools and gear when you're hauling them around to job sites
Coverage in case one of your employees decides to steal from you
Extra protection for your outdoor signs and landscaping
Your best bet is to work with a local insurance agent who actually knows your area. They can help you figure out exactly what makes sense for your specific situation and put together a package that actually fits what you're doing.
How to Find Local Business Insurance Agents
Why Go Local?
Personalized Service – Local agents take time to understand your unique business risks.
Regional Expertise – They’re familiar with local laws, weather patterns, and market conditions.
Long-Term Relationships – A trustworthy agent is an asset as your business grows.
Find the Right Agent on IA Near Me
At IA Near Me, we’ve reimagined how business owners connect with insurance agents. Our platform matches you with verified local agents who specialize in small business insurance—including BOP insurance.
All it takes is a quick form, and we’ll link you with nearby professionals who can walk you through the coverage you need, offer competitive quotes, and help you compare plans side-by-side.
Getting a Business Owners Policy isn't just about protecting your wallet - it's actually a pretty smart business decision. When you're running a small business, it gives you that peace of mind knowing you're covered for the stuff that's most likely to go wrong, and you won't go broke paying for it.
Doesn't matter if you're just starting out with a new idea, keeping the family business going, or turning your side hustle into something bigger - a BOP is like having a safety net so you can stop worrying about "what if" and actually focus on growing your business.
Get BOP insurance quotes with local agents on IA Near Me today!
FAQs
I run a small bakery from home—do I still need a Business Owners Policy?
Yes, even home-based businesses can benefit from a BOP. If customers visit your home or you store expensive equipment or inventory there, a BOP helps protect your assets and shields you from liability risks. However, check with your agent—some insurers require a separate endorsement for home-based operations.
Can I include cyber liability or commercial auto in my BOP, or do I need a separate policy?
Most BOPs don’t include cyber liability or commercial auto by default. That said, some insurers allow you to add cyber coverage as an endorsement. Commercial auto, however, almost always requires a separate policy. An agent can help you identify and close any coverage gaps.
I’m opening a small retail store. Would a BOP be enough to protect me from lawsuits and property damage?
A BOP is a great starting point. It typically includes general liability (to handle lawsuits from customer injuries) and property coverage (to protect your store, inventory, and fixtures). But depending on your risk exposure, you might also want to add equipment breakdown, spoiled goods coverage, or employee dishonesty insurance.