What is a Businessowners Policy (BOP)?

What is a Businessowners Policy (BOP)?

Aug 01 2023

What is a Businessowners Policy (BOP)?

Whether you’ve been running a small business for a while or are finally ready to take the plunge and be your own boss, of course you would like peace of mind that your company and all you have and will put into it is properly protected. A businessowners policy (BOP) is typically the most cost-effective way for a small business owner to secure the insurance coverage that will safeguard their valuable investment against many of the most common liability and property risks they face.

What is a BOP?

A BOP is a type of package policy that combines two or more business insurance coverages. This insurance solution is generally less expensive for smaller businesses than purchasing individual policies for all of their coverage needs.

The standard small business BOP usually includes three critical coverages: general liability insurance, commercial property insurance, and business interruption insurance. Regardless of the industry, most companies should have at least these coverages in place to protect against and help pay for costs related to:

  • Third-party claims that their services, products, or employees have caused an injury, illness, or property damage
  • Repairs or replacement of business property that is damaged or destroyed by a fire, windstorm, lightning, theft, or other covered disasters
  • Lost income if a fire or other similar covered catastrophe temporarily shuts down operations and the extra expenses of doing business out of a temporary location

While general liability, commercial property, and business interruption are the coverages typically included in a BOP, most top insurance carriers offer a flexible businessowners policy. So, whether you’re an artisan contractor, restauranteur, or retail shop owner, you may be able to get a BOP tailored to your business’ and industry’s distinct risks and requirements. Some of the options you may want to consider adding to your BOP include:

  • Crime
  • Cyber Liability
  • Equipment Breakdown
  • Hired/Non-Owned Auto
  • Inland Marine
  • Food/Merchandise Spoilage
  • Errors and Omissions
  • Employment Practices Liability
  • Accounts Receivable
  • Money and Securities
  • Valuable Papers

Is your business eligible for a BOP?

BOPs are specifically designed for smaller businesses, which generally means companies with 100 employees or fewer and revenues of $5 million or less may qualify for this package policy. However, the type of business you have and the associated risks of your industry can also affect eligibility, so it’s important to consult with a local Bearingstar insurance professional to see if a BOP is right for you. If not, then our knowledgeable and experienced agents will be able to help you explore other economical coverage solutions.

Would you like assistance securing the small business insurance you need at competitive rates from highly respected carriers? The Bearingstar team is happy to provide more information about the potential benefits of combining your insurance policies and taking advantage of a BOP. We can also help you identify additional coverages you may require to fully protect your unique operation, but that are not typically included in a standard businessowners policy, such as commercial umbrella and flood insurance.

Please contact a member of our Massachusetts team by calling 877-801-7424 or reach out to a Connecticut Bearingstar professional by calling 888-519-9996. We look forward to hearing from you and helping you find the best insurance coverages to protect your small business.


  1. What does a business owners policy (BOP) cover? Insurance Information Institute.
  2. Business Owner Policy (BOP). Investopedia.
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