Market & Policy · Insurance Term
Businessowners Policy (BOP)
Definition
A businessowners policy (BOP) is a ready-made package for small and mid-sized businesses. It combines property, general liability and business income coverage in one policy. It is usually simpler, and can cost less, than buying each part separately. But not every business qualifies.
In Plain English
Insurers built the BOP for common, lower-hazard businesses. Examples include small offices, shops, small apartment buildings and some buildings leased to others. Each insurer sets its own rules on size, building value, use and revenue.
A BOP bundles property and commercial general liability coverage. It usually includes business income for a set time. You get fewer options than with a custom program, and some coverages may have lower sublimits.
Larger or more complex risks often use a commercial package policy instead. Examples include multi-property portfolios, hotels and gas stations. A package lets each coverage be tailored, with more control over limits and deductibles.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: an owner of a single small office building leased to two tenants qualifies for a BOP. One policy covers the building, liability and a year of lost rent. Later, after buying three more properties, the owner moves to a package policy with blanket limits.
What to Watch For
- Ask whether your property type and size qualify for a BOP.
- Compare included sublimits with a package policy before deciding.
- Check whether business income is limited by time, dollars or both.
- Confirm whether auto, workers' compensation and umbrella need separate policies.
Common Questions
Is a BOP enough for my commercial building?
It can be for smaller, simpler properties. Larger or higher-hazard properties often need a package policy or separate policies.
Does a BOP include flood or earthquake?
Usually not. These are commonly excluded and must be bought separately.
Last updated October 14, 2026 · Primesure editorial team · How We Write