Business Owner Policy – Best BOP Insurance for 2024

What is included in a business owner’s policy (BOP)?

A business owner’s policy, or BOP insurance, combines multiple types of insurance coverage into one wide-reaching policy for your small business.

A business owner’s policy typically includes two main types of insurance:

1. General liability insurance
2. Commercial property insurance

In some cases, you may also be covered for business income and extra expense insurance which can cover lost income and reimburse expenses due to property damage.

BOPs can be useful to small business owners because they are easier to manage versus having multiple policies and they can be slightly cheaper than buying each insurance type separately.

What does BOP insurance cover?

Some of the main things a BOP can cover include:

• Damage to buildings and property at your company’s premises
• Injuries to third parties on your premises
• Damage to property owned by third parties on your premises
• Damage or injury to third parties resulting from a product you sold
• Personal injury due to something your company said, advertised, or wrote
• Lost income due to business interruptions resulting from property damage

Here is a look at BOP coverage in greater detail:

What does a BOP not cover?

Despite being comprehensive, BOPs don’t include coverage offered by the following types of insurance:

Workers’ compensation: Almost all states require employers to purchase workers’ compensation coverage, which pays medical bills and other expenses associated with workplace illnesses and injuries. BOP insurance doesn’t include workers’ comp coverage, so you’ll need to purchase a separate policy.

Professional liability:
A BOP plan includes general liability insurance, but it doesn’t include professional liability coverage. Also known as errors and omissions (E&O) coverage, professional liability insurance protects you if a client sues you for errors, omissions, or negligent acts.

Commercial Auto insurance:
Your BOP insurance won’t cover any auto accidents involving your employees or your vehicles. You’ll need a separate business auto or commercial auto policy if you want this type of coverage.

Cyber liability insurance:
If your company’s or client’s sensitive data is lost or stolen due to a data breach, cyber liability can cover costs related to the fallout, clean-up, and resulting lawsuits.

Inland marine insurance:
Property insurance doesn’t cover your merchandise or equipment when it is stored off-site, used at a job site, or in transit. Inland marine insurance can cover your property in all of these scenarios.

Health insurance:
If you want to provide health insurance for your employees, you must purchase it separately. It doesn’t come with a BOP package.

Fidelity bonds:
Fidelity bonds protect against financial losses caused by the dishonest or fraudulent actions of your employees

If you are interested in getting these types of coverage with a BOP, you may have the option to add select coverages to your plan for an extra fee.

See plan options here using our quote generator.

Who needs a business owner’s policy?

Most business owners can benefit from having a BOP, although it is especially well-appointed for small businesses, such as an e-commerce business online and ones with physical locations. BOPs may not be a good fit for larger businesses, ones that have complex operations, or businesses that operate off-site, such as landscapers.

As a general rule of thumb, a BOP could be a good fit if your company:

• Has 100 employees or less
• Has a brick-and-mortar place of operations
• Makes under 1 million dollars a year in revenue
• Works in a low-risk industry

BOP coverage is ideal for companies in the following industries:

• Personal Care & Pet Care
• Food & beverage businesses
• Retail & Grocery
• Property rental / Commercial real estate
• Technology & IT Services
• Warehousing / Wholesaling / Manufacturing
• Religious & Cultural Organizations
• Printers & Publishers

Top reasons to get BOP

• It’s often cheaper than buying separate policies
• It includes 2 of the most important broad-reaching coverages
• It is easier to manage than having multiple policies
• You can often add other types of coverage to a BOP plans

Reasons not to get a BOP

• You may be able to get a more customizable commercial package insurance
• Your business may carry too much risk or not need physical property insurance
• Your company may be too large or growing quickly and require other types of coverage

What is the difference between a BOP and a commercial package policy (CPP)?

A business owner policy (BOP) and a commercial package policy (CPP) are similar as they combine multiple types of insurance into one plan. However, a CPP is more customizable and allows you to add several different types of insurance under one plan.

For example, you may be able to create a policy with professional liability insurance, commercial auto coverage, and inland marine insurance. BOPs generally only offer general liability and commercial property insurance. Therefore, CPPs offer more flexibility.

In general, Commercial Package Policies are a great fit for larger businesses or ones with higher risk, whereas a BOP may be a better fit for smaller businesses.

To find out what type of insurance is a better fit for you, consider speaking to an insurance advisor.

How much does a BOP cost?

Based on Insureon sales data BOP insurance costs an average of $684 per year. That said, BOPs can start as as low as $27 per month for some businesses.

Get a BOP for as low as $27/month*

*Applies to quotes made through Insureon only. Average monthly premium calculations are estimates and may vary by state, insurance provider, and the nature of your business. Where required or allowed by state law, insurance taxes, service fees, and other surcharges may be included and billed separately from the premium.

If this seems expensive, keep in mind that buying general liability and property insurance separately can be far more expensive than bundling them through a single BOP policy. Therefore, a BOP policy is well worth the investment.

Ultimately, what you pay for BOP insurance depends on several factors such as:

• Industry:
  Insurance companies base their premiums on the level of risk involved in writing a policy for your company. If you do high-risk work, you may pay more for your coverage.
• Claims history:
  The more insurance claims you file, the higher your rates are likely to be.
• Number of employees:
  When it comes to pricing BOP insurance, the number of employees you have makes a big difference.
• Coverage limits:
  If you choose the highest coverage limits, you’ll pay more for BOP insurance than someone who chooses the lowest coverage limits.

For more info, try our BOP calculator to see how much a BOP plan could cost your business