Coverage guide

Business owner’s policy (BOP)

For small businesses with a shop, office or storefront: how a BOP combines general liability, property and business income cover, who qualifies and what it costs.

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What similar businesses pay

BOP, all industries: About $83 a month
Consultants: About $55 a month
Retail, restaurants and auto repair: $131–$190 a month

Published benchmarks, not quotes. Your price depends on underwriting.

Cost

What business owner’s policy (BOP) costs

About $83 a month

BOP, all industries

Insureon median for its small-business customers, updated April 17, 2026

About $55 a month

Consultants

Insureon customer average, updated April 17, 2026

$131–$190 a month

Retail, restaurants and auto repair

Insureon customer averages for higher-risk businesses, updated April 17, 2026

About $413 a month

Restaurants

The Hartford customer average by industry, updated May 20, 2026

A BOP costs more than general liability alone because it also insures your property, but usually less than buying the parts separately. Insureon’s customers pay a median of $83 a month: 25% pay under $50 and 33% pay $50–$100, with annual premiums from about $400 to over $6,000. Most (79%) choose $1 million per occurrence and $2 million aggregate liability limits, with an average $500 deductible. Customer traffic and property values drive the spread: Insureon puts consultants at $55 a month and storefront retailers, dine-in restaurants and auto repair shops at $131–$190, while The Hartford’s industry averages run from $72 for photographers to $413 for restaurants.

What moves your price

Value of the building, equipment, furnishings and inventory you insure.
Type of business and how many customers come through the door.
Location: Insureon’s state medians range from $70 a month in Virginia to $105 in Florida.
Building construction, security features and fire hazards.
Number of employees and how much work happens off site.
Liability limits, deductible and claims history.

Who it’s for

Who needs business owner’s policy (BOP)

You rent or own a shop, office or storefront

Most businesses with their own space need both liability and property cover, and a landlord will usually ask for proof of liability insurance before you sign the lease. A BOP handles both in one policy.

Fire, theft or vandalism hits your premises

The property part pays to repair or replace your building, if you own it, and the furniture, computers, machinery and inventory inside after a covered fire, burglary, vandalism or weather event.

A covered loss forces you to close

Business income cover replaces lost income while you repair, and extra expense cover helps pay to operate from a temporary location.

A customer is hurt or their property is damaged

The liability part responds when someone slips in your store, a product you sell injures a buyer or your work damages a customer’s property, and pays legal defense for covered claims.

When a BOP is not available

BOPs are for smaller, lower-risk businesses. Insurers weigh premises size, required limits, type of business and offsite work; Insureon lists typical cutoffs such as fewer than 100 employees and under $1 million in sales. Larger or riskier firms use a commercial package policy instead.

Coverage

What business owner’s policy (BOP) covers

Building

Repair or rebuilding of a building you own after a covered loss such as fire or theft damage.

Business personal property

Furniture, inventory, raw materials, machinery, computers and other equipment used in the business, whether you own or rent your space.

Business income and extra expense

Lost income after a covered loss interrupts operations, plus the extra cost of operating from a temporary location.

General liability

Third-party bodily injury, property damage, product liability and personal and advertising injury such as libel, slander or copyright infringement, including defense costs.

Medical payments

No-fault payment of a visitor’s minor medical bills, which Insureon says is often limited to around $5,000.

Optional endorsements

Coverage added for extra premium, such as outdoor signs, lost e-commerce income after a computer virus or hack, data breach response, off-premises utility interruption or professional liability with some insurers.

Umbrella above the BOP

A commercial umbrella sits above the BOP’s liability limits and other liability policies for a larger claim or a contract that requires higher limits.

What it doesn’t cover

Injuries to your employees, which workers’ compensation covers.
Vehicles your business owns or uses for work, which need commercial auto.
Harassment, discrimination and wrongful termination claims, which need employment practices liability.
Professional errors and advice, unless your insurer offers a professional liability endorsement.
Flood, which commercial property insurance typically does not cover.
Lost customer payment records, unless you add an accounts receivable endorsement.
Outdoor signs, unless coverage is specifically added.

Rules

Requirements and filings

No law requires a BOP itself, but leases, loans, client contracts and licenses often require the liability and property coverage inside it, and state laws require coverage a BOP does not include.

Requirement	Applies to	What it means
Commercial lease	Businesses renting an office, shop or storefront	Landlords often require general liability and proof of coverage before you sign; the lease sets the limits and whether the landlord must be named on the policy.
Business loans and mortgages	Businesses taking a loan or mortgage	Insureon notes lenders and mortgage companies often require general liability; read the loan agreement for any property coverage it requires on collateral.
Florida contractor license	Florida general and building contractors	$300,000 public liability and $50,000 property damage, kept continuously (Fla. Admin. Code R. 61G4-15.003). Confirm your BOP’s liability limits meet the license minimum.
State workers’ compensation laws	Employers, such as every California employer with even one employee	A BOP does not include workers’ comp, so a separate policy is needed wherever state law requires it (California Division of Workers’ Compensation).
State auto liability laws	Businesses that own vehicles or use them primarily for work	A BOP excludes vehicles; Insureon notes commercial auto is required in most states when the business owns the vehicle or uses it mainly for work.

Compare business owner’s policy (BOP) options.

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Pay less

How to lower the cost

Check whether you qualify for a BOP before buying general liability and property separately; the bundle usually costs less.
Raise the deductible if you can absorb it; Insureon customers average $500.
Tell the insurer about alarms, sprinklers, deadbolts and building updates, since security and fire hazards affect the price.
Insure property at a realistic value: overstating it costs premium and understating it leaves you short after a loss.
Add only the endorsements your business needs, and review them at each renewal.
Keep claims down with basic premises safety, such as clear walkways and maintained wiring.

Before you start

What underwriters ask for

Business address, whether you own or rent and the square footage you occupy.
Building construction type, year built and any roof, wiring or plumbing updates, if you own it.
Value of equipment, furniture, inventory and other contents.
Annual revenue, number of employees and how much work happens off site.
Fire and security protection such as alarms and sprinklers.
Lease, loan or contract insurance requirements.
Five years of loss runs and your current policy details.

Common questions

Business owner’s policy (BOP): questions

Who qualifies for a business owner’s policy?

Generally smaller, lower-risk businesses. Insureon lists typical criteria such as a low-risk industry, a location outside the owner’s home, fewer than 100 employees, sales under $1 million and a relatively small space.

Does a BOP include business interruption coverage?

Usually yes. The Insurance Information Institute says the standard BOP includes business income insurance, which replaces lost income and pays extra expense after a covered loss.

Does a BOP cover flood damage?

No. FEMA notes commercial property insurance doesn’t typically cover flood. The National Flood Insurance Program offers separate commercial cover of up to $500,000 for the building and $500,000 for contents.

Does a BOP include workers’ comp or commercial auto?

No. Both are separate policies. Workers’ comp covers employee injuries and commercial auto covers business vehicles.

Can I add professional liability to a BOP?

With some insurers. The Insurance Information Institute notes professional liability is not included in a standard BOP, and The Hartford offers it as an add-on; otherwise buy a standalone policy.

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

A BOP is a preset bundle of liability and property cover for small businesses. A commercial package policy, typically bought by larger or higher-risk businesses, offers more flexibility in risks covered and limits; Insureon puts its average at $117 a month.

Does my homeowners policy cover a home business?

Usually not for business claims. The SBA describes home-based business coverage added to a homeowners policy as a rider for a small amount of equipment and liability; Insureon says BOP eligibility typically requires doing business outside the owner’s home.

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Sources (11)

Figures are published third-party estimates, not quotes. Coverage depends on policy terms and underwriting, and rules vary by state. Updated October 2026.