Business Insurance
Business Owner's Policy (BOP)
A BOP packages general liability and commercial property insurance into one affordable policy, designed specifically for small to mid-sized businesses.
Last reviewed: May 2026 · Editorial methodology
Definition
A Business Owner's Policy (BOP) combines general liability insurance and commercial property insurance into a single bundled policy, typically at a lower combined premium than buying each separately. Small retail shops, restaurants, and offices commonly pay $500–$3,500/year for a BOP depending on location, revenue, and building value. BOPs often include business interruption coverage as a standard component, which pays lost income if a covered peril forces a temporary closure. Not every business qualifies — insurers generally restrict BOPs to companies with under $5–10 million in annual revenue and relatively low-risk operations; contractors with heavy equipment or manufacturers usually must buy standalone commercial policies. A common pitfall is assuming the property coverage extends to equipment or tools taken off-premises — most BOPs have limited or no off-premises coverage, requiring an inland marine endorsement. Reviewing BOP limits annually is critical as businesses grow and acquire more property.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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