10 min read
What Insurance Do You Need for a Small Business?
The insurance a small business actually needs depends on what the business does, where it operates, how many employees...
Business Owners Policy (BOP) Insurance
Property, liability, and business income protection bundled into one policy.
- Business Insurance Products
- Business Owners Policy (BOP)
Quick answer: A business owners policy (BOP) bundles commercial property insurance, general liability insurance, and usually business income coverage into one package policy designed for small and midsize businesses. It costs less than buying each coverage separately and simplifies your insurance program into a single policy, premium, and renewal date.
Most small businesses need the same core protections: coverage for the building and equipment they rely on, liability protection if a customer is injured or property is damaged, and income replacement if a covered loss forces a shutdown. A business owners policy packages all three, which is why it is the most common starting point for small business insurance in the United States.
At Pro Insurance Group, we quote business owners policies across more than 40 states and help you decide whether a BOP or standalone coverage is the better fit for your operation.
What a business owners policy includes
A standard BOP combines three coverages into one policy:
- Commercial property coverage for your building (if you own it), tenant improvements, equipment, inventory, furniture, and fixtures against fire, theft, vandalism, and many weather events. See our commercial property insurance page for a full breakdown of how this coverage works.
- General liability coverage for third party bodily injury, property damage, and personal and advertising injury claims, including the legal costs to defend them. Learn more about general liability insurance.
- Business income coverage that replaces lost revenue and pays continuing expenses if a covered property loss shuts you down. Many BOPs include this automatically; see our business income insurance page for details.
Carriers also offer optional endorsements that can be added to a BOP, including equipment breakdown, spoilage, employee dishonesty, and hired and non owned auto liability.
What a BOP does not cover
A business owners policy is a strong foundation, but it is not a complete insurance program. A BOP does not include:
- Workers compensation, which is required by law in most states once you have employees. See workers compensation insurance.
- Commercial auto, which covers vehicles owned and operated by the business.
- Professional liability (E&O), which covers claims arising from professional advice or services. See errors and omissions insurance.
- Cyber liability, which responds to data breaches and ransomware events. See cyber liability insurance.
We build complete programs around a BOP so the coverages work together without gaps or overlaps.
BOP vs. commercial property insurance
The most common question we hear is whether to buy a BOP or a standalone commercial property policy. The short version:
- Choose a BOP if you are a small to midsize business in an eligible class. You get property, liability, and usually business income in one policy at a lower combined premium, with one renewal to manage.
- Choose standalone commercial property if your business is larger, has high property values, operates in a higher risk industry, or needs customized limits and forms a packaged policy cannot provide. Standalone property pairs with a separate general liability policy and gives your broker more flexibility to structure each coverage independently.
If you are weighing the two, our commercial property insurance page covers the standalone option in depth, and we are happy to quote both routes so you can compare real numbers.
Who qualifies for a BOP
Carriers limit BOP eligibility to lower risk operations, generally based on:
- Business size, often under 100 employees and under a revenue threshold that varies by carrier
- Building size, typically smaller offices, retail spaces, and service locations
- Industry class, with offices, retail stores, restaurants with limited cooking exposure, contractors, and professional services commonly eligible
Higher risk operations such as manufacturing with heavy machinery, bars with high liquor sales, and large habitational schedules usually need standalone policies instead. We place both, so you get the right structure either way.
How much does a business owners policy cost
Most small businesses pay between $500 and $3,500 per year for a BOP, with many low risk operations such as offices and consultants landing between $700 and $1,200 per year. Premium is driven by your industry, property values and construction, location, claims history, and the limits and deductibles you choose. Because a BOP bundles coverages, it almost always costs less than buying property and liability separately at the same limits.
Get property, liability, and income protection in one policy built for your business.
Request a Quote Explore Business Insurance
Frequently asked questions
What does a business owners policy cover?
A BOP covers commercial property (your building, equipment, inventory, and fixtures), general liability (third party bodily injury and property damage claims), and in most cases business income (lost revenue during a covered shutdown). Optional endorsements such as equipment breakdown, spoilage, and employee dishonesty can be added.
What is the difference between a BOP and commercial property insurance?
Commercial property insurance is a standalone policy that covers only physical assets. A BOP bundles commercial property with general liability and usually business income into one package for small to midsize businesses. A BOP is simpler and typically costs less, while standalone property offers more flexibility for larger or specialized operations.
What is the difference between a BOP and general liability insurance?
General liability covers third party injury and property damage claims but provides no coverage for your own property. A BOP includes general liability and adds commercial property and usually business income coverage. If you have a location, equipment, or inventory worth protecting, a BOP covers more than general liability alone, often for a modest premium difference.
Who qualifies for a business owners policy?
Carriers generally limit BOPs to small and midsize businesses in lower risk classes, commonly offices, retail stores, restaurants with limited cooking exposure, service businesses, and many contractors. Eligibility rules vary by carrier and usually consider employee count, revenue, building size, and industry class.
How much does a business owners policy cost?
Most small businesses pay between $500 and $3,500 per year, with many low risk operations paying $700 to $1,200. Premium depends on industry, property values, location, claims history, and selected limits and deductibles. A BOP almost always costs less than buying the same coverages separately.
Does a BOP include workers compensation or commercial auto?
No. Workers compensation and commercial auto are always separate policies. A BOP also excludes professional liability and cyber liability, which are written separately. A complete small business program typically pairs a BOP with workers compensation and any specialty coverages your operation needs.
Related commercial coverage
Compare a BOP with standalone commercial property insurance, round out your program with workers compensation, or explore our full range of business insurance solutions.