What this coverage is
A Business Owners Policy, or BOP, packages two foundational coverages — general liability and commercial property — into a single policy. Many BOPs also include business income (business interruption) coverage to help replace lost income after a covered event.
BOPs are typically built for small to mid-sized businesses with relatively predictable risk profiles. Bundling these coverages often simplifies administration and can be more cost-effective than buying each policy separately.
Who commonly needs it
A BOP commonly fits established small businesses that have both a physical location or business property and customer-facing liability exposure, but do not require the complexity of a larger commercial package program.
Where this coverage commonly fits
Foundational — a starting point in many commercial insurance programs, regardless of industry. A BOP bundles general liability and property coverage, and commonly serves as the base of a small-business program.
- Retail shops and boutiques
- Professional offices and small agencies
- Restaurants and cafes that meet eligibility guidelines
- Personal-service businesses with a storefront
- Small property owners and landlords
What it may cover
- Third-party bodily injury and property damage (the general liability portion)
- Your building, equipment, inventory, and fixtures against covered perils (the property portion)
- Lost business income and certain extra expenses after a covered interruption
- Products-completed operations liability
- Legal defense costs for covered liability claims, subject to policy terms
What it typically excludes
- Employee injuries, which workers compensation generally addresses
- Professional errors or negligent advice
- Commercial auto exposures
- Flood and earthquake, which usually require separate coverage
- Larger or higher-hazard operations that exceed BOP eligibility
Hypothetical claim scenarios
These illustrative examples are for general understanding only. Coverage depends on the specific policy terms, conditions, and exclusions.
Fire damages a storefront
A covered fire damages a retailer's inventory and forces a temporary closure. The property portion may help repair or replace property, while business income coverage may help with lost revenue during the closure, subject to policy terms.
Customer injury in the shop
A customer trips over a display and is injured. The liability portion of the BOP may help respond to the resulting claim and defense costs.
Theft of equipment
Equipment is stolen after a break-in. The property coverage may help replace the items, up to limits and subject to deductibles.
What commonly affects cost
- Building value, contents, and replacement cost
- Business type and liability exposure
- Location, construction, and protective features
- Selected limits and deductibles
- Claims history and years in operation
How much does it cost?
On average, many businesses pay roughly $1,000–$3,000 per year for many small businesses for business owners policy. That figure is a general national average only — your actual premium is set during underwriting.
- Business Owners Policy$1,000–$3,000 per year for many small businesses
These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.
Industries where this coverage is common
Coverage needs vary business to business — most companies consider this protection regardless of industry. These are simply the industries where we see it most often.
See how this coverage works in your industry
A few examples from the business types we cover — this coverage applies well beyond the industries shown here.
Don't see your business type? Browse all industries we cover — coverage recommendations are tailored to every operation.
Frequently asked questions
What does a BOP include?
A standard BOP combines general liability and commercial property coverage, and frequently includes business income coverage. Optional endorsements can tailor it further.
Is a BOP cheaper than buying coverages separately?
Bundling is often more cost-effective than purchasing general liability and property as standalone policies, though pricing depends on your specific business.
Does a BOP cover employee injuries?
No. Workers compensation is generally needed to address employee work-related injuries; it is not part of a standard BOP.
Can any business get a BOP?
BOPs typically have eligibility guidelines based on size, industry, and risk. Larger or higher-hazard operations may need a Commercial Package Policy instead.
Does a BOP include flood coverage?
Flood and earthquake are generally excluded from a standard BOP and usually require separate policies or endorsements.
How do I get a quote for this coverage?
Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help tailor coverage to your business.
Related coverages
- General Liability Insurance Foundational protection for third-party bodily injury, property damage, and advertising injury claims.
- Business Auto Insurance Liability and physical damage protection for vehicles used in business operations.
- Workers Compensation Insurance Coverage for employee work-related injuries and illnesses, often required by state law.
- Commercial Package Policy A flexible policy combining multiple commercial coverages for larger or more complex businesses.