Property & equipment

Business Owners Policy (BOP)

One package that combines property and general liability insurance for eligible small businesses, often with business income and other extensions built in.

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A business owners policy (BOP) bundles commercial property and general liability into a single package for small and mid-sized businesses. Many BOPs also include business income and a set of extensions that would be separate add-ons on standalone policies.

Not every business qualifies. Each insurance company sets its own BOP eligibility rules, usually based on:

your type of business and what you do day to day
the square footage you use and the size of any building you own
your annual revenue

Higher-hazard work, such as heavy contracting or manufacturing, often needs separate property and liability policies instead.

A BOP is a practical starting point for many offices, shops, restaurants and service businesses, but it doesn't include everything. Commercial auto, workers' compensation and professional liability usually need separate policies. We'll check your business against each insurance company's rules and tell you if separate policies would work better.

What's typically included

Exact coverage depends on the policy form, endorsements and insurance company.

Building and business personal property

Property insurance for a building you own and your contents, often on a special causes of loss form with replacement cost valuation.

General liability

Bodily injury, property damage, personal and advertising injury, and products-completed operations, similar in structure to a standalone general liability policy.

Business income and extra expense

Often included, paying the income you actually lose and extra costs to keep operating for a set period, such as 12 months, depending on the insurance company.

Built-in extensions

Accounts receivable, valuable papers, outdoor signs and property temporarily off premises, usually with smaller limits than standalone coverage.

Common add-ons

Equipment breakdown, employee dishonesty, data compromise, hired and non-owned auto liability (for rented vehicles and employees' own cars used for work), and limited EPLI or cyber endorsements, depending on the insurance company.

Contractor endorsements

Tools and equipment coverage, plus additional insured and waiver of subrogation endorsements, for contractors who qualify for a BOP.

What to watch for

Eligibility limits on square footage, revenue, building size or type of business. Growth can push you out of a BOP at renewal.
Professional services exclusions for businesses that give advice, design, or provide treatment or personal care.
Built-in sublimits (smaller limits for specific items) on spoilage, signs, data, money and securities that may be too low for your operation.
Hired and non-owned auto liability, if added, doesn't pay for damage to vehicles and doesn't replace a commercial auto policy for vehicles your business owns.
BOP liability limits that may not meet contract or lease requirements without an umbrella.

What affects price and eligibility

Business class and type of operations
Building construction, age, fire protection and location
Property values for the building, contents and business income
Annual revenue and square footage
Claims history
Add-ons and deductibles selected

Helpful information for a quote

Have what you can — we'll ask for anything else an insurance company needs. Starting a new business? You can begin without prior policies or loss runs.

Business description, years in business and annual revenue
Location address, square footage and whether you own or lease
Building details such as construction, year built and updates, if you own it
Estimated contents and equipment values
Current declarations page and loss runs (claims history reports) for the last 3–5 years, if you've been insured before
Lease requirements and any additional insured or certificate needs

Written by ALP Insurance

Who typically needs it

Offices and professional firms with a modest location and limited property
Retail stores, boutiques and personal service businesses
Restaurants, cafés and food businesses that meet the insurance company's eligibility rules
Light trade contractors, depending on the trade and revenue
Owners of small commercial or mixed-use buildings with eligible occupancies
Small wholesalers and distributors, depending on the insurance company

Talk it through with an agent

Not sure what you need? Start a request and choose "Not sure" — a licensed ALP agent will talk through the options with you.

Request a BOP quote

Industry guides

Business Owners Policy FAQs

Why choose a BOP instead of separate property and liability policies?

A BOP packages common coverages and extensions into one policy, which can simplify things and fill small gaps. Whether a BOP or separate policies work better depends on your operations, limits and contract requirements.

Does a BOP include workers' compensation or commercial auto?

No. Workers' compensation and auto liability for vehicles you own are written on separate policies. Many BOPs can add hired and non-owned auto liability for employees driving personal or rented vehicles on business.

Can contractors get a BOP?

Some can. Many insurance companies offer BOPs for lower-hazard trades with limited revenue and subcontracting, while roofing, excavation and larger general contractors usually need a standalone general liability policy.

Does a BOP include professional liability?

Generally not. Most BOPs exclude professional services, though some insurance companies offer limited professional liability endorsements for certain businesses, so advice-based firms typically need a separate errors and omissions (E&O) policy.

What happens if my business outgrows its BOP?

If revenue, square footage or operations exceed the insurance company's eligibility rules, the policy may be non-renewed or replaced with separate policies. Let us know about changes in revenue, space or operations so we can check eligibility before renewal.