A business owner's policy, or BOP, combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
When do businesses need a BOP?
All small businesses that want to gain protection from unexpected financial losses should consider a business owner's policy. Many businesses only purchase general liability insurance, which does not protect your own business property. A BOP covers your customers' property as well as your own business property.
A business owner's policy combines two policies at a lower rate than if purchased separately:
General liability insurance General liability insurance protects against common business risks, such as customer injury or damage to client property. It's often required when signing a commercial lease or a client contract.
Commercial property insurance Commercial property insurance protects your building and your business property from damage or loss.
A BOP is ideal for a small business that wants protection against common lawsuits and coverage for business property such as a building or valuable equipment.
Business owner's policy eligibility Not all businesses are eligible for a business owner's policy. Businesses that are eligible for a BOP typically have:
Low industry risk
Fewer than 100 employees
Less than $1 million in annual revenue
A small commercial space
Business owner's policy costs A business owner's policy is an affordable option for small businesses that need liability and property insurance. Several factors affect policy costs, including: