A business owner’s policy, also known as a BOP, is a package that suits small to mid-size businesses. It typically includes three main types of coverage: property insurance, business income (aka business interruption insurance), and liability insurance.

Businesses who face only a certain limited amount of risk may qualify for a BOP. Two factors that determine a business’ eligibility are: type of business, and square footage. Businesses with specific risks, like a jewelry store, a shipping company, or a manufacturing factory, would not likely qualify for a BOP. However, home-based businesses, or businesses with a relatively small amount of employees are likely candidates.

Some examples of the particular s businesses that use BOPs are:

  • Office buildings
  • Buildings used primarily for retail or services like clothing stores or coffee shops
  • Dentists, attorneys, and accountants
  • Counselors
  • Small strip malls with low risk tenants such as advertising and insurance agencies, specialty retail such as frame or fabric stores, and foods such as yogurt shops, deli’s and bakeries.

Overall, the BOP is a lower cost option for covering property and liability versus purchasing individual policies. It does not include worker’s compensation, health or disability insurance, commercial auto insurance, or professional liability.

Other solutions then a BOP include Commercial Package Policy (CPP)