Business Owners Policy

What is Business Owners Policy

What is Business Owners

Business Owners Policy (BOP) is a form of commercial insurance policy that protects all majority themeassets, liability risks, and losses such as theft, fire, and other particular perils.

In addition, it helps business owners to cover claims that may occur from their business operations. This policy includes claims of bodily injury and property damage, as well as claims related to personal and advertising injury.

Business Owners Policy Coverage

Liability Coverage

Liability coverage under BOP insurance provides protection against customer injury, property damage, and business interruption. Liability coverage covers business legal responsibility for the damages it may cause to others. On the other hand, BOP does not cover employees' work-related injuries.

However, you can purchase a separate policy for Workers' Compensation to get the coverage you need for your employees. Talk to an experienced agent to get the right coverage for your business. Insure Hopper affiliated agents will help you find the best rate for your Workers' Compensation insurance. Get a Free Quote today to compare rates!

Property Coverage

Business Owners Policy provides coverage for commercial buildings and other movable property owned and used in operating business. The property coverage form of a BOP is often a named-peril basis, in which coverage is only provided for damages due to events that are indicated in the policy.

A Business Owners Policy also has exclusions like most other policies, like Earthquake damages. Earthquake damages a generally excluded ion BOP. If your business is located in a place prone to earthquakes, you might want to consider purchasing an endorsement or purchase a separate Earthquake insurance policy to extend coverage.

Business Owner’s Policy Optional Coverages Available

Business Owners' Policy is combined with two insurance coverage in one policy. It protects the business against losses such as liability claims and property damage. On the other hand, there are losses that your company is at risk that is not covered by your BOP Insurance. However, there are optional coverages that can add to your BOP coverage to provide the particular protection of your business.

Equipment Breakdown

Repairing and replacing damaged equipment can cost a considerable amount of money to cover using out-of-pocket money. This endorsement typically reimburses the amount to repair and replace the damaged equipment.

Business Income and Extra Expense

Most of the small businesses are at risk of structural damage due to perils. Peril can cause huge damage to a building that needs to be repaired. During construction, businesses will find a relocation site where the business operation continues. Business Income and Extra Expense will cover the income lost and additional expenses resulting from the unfortunate event.

What is Not Covered in Your Business Owners' Policy


Most businesses have their employees conducting business operations. Providing coverage for your employees is beyond Business Owners' Policy coverage. However, Workers' Compensation is the policy that provides protection for employees and is usually purchased as a separate policy from a Business Owners’ policy.

If your business has employees at least one, it is recommended to purchase Workers' Compensation to protect your employees against work-related accidents.
Get a Quote for Workers’ Compensation Insurance.


Vehicles that are used to conduct business operations are typically not covered under the Business Owners' Policy. Commercial Auto Insurance is a form of business insurance to consider to cover your vehicles used in business. This policy protects the business from financial losses in the event your employee is at fault for an auto accident.
Get a Quote for Commercial Auto Insurance.

Bussiness insurance policy
Business Owners' Policy for protect small businesses

Which Businesses are Eligible for BOP?

Business Owners' Policy is designed to protect small businesses like retail stores, small business offices, small restaurants, etc.

Insurance providers have criteria to base on the eligibility of a business.

Size of the business location

large business premises manufacturing plants is generally ineligible for the BOP.

Number of Employees

BOP is designed for small businesses, and businesses that have 100 employees are ineligible.

Annual Revenue

Businesses that earn more than $5 million annually is ineligible.

Every insurance policy has the criteria to base the eligibility of businesses to purchase a specific policy. Contact Us now and talk to an experienced insurance agent to find out which insurance policy is eligible for your business.

By comparing rates from different carriers on InsureHopper, you can get the right policy coverage for your business.
Get a Free BOP Quote!