General liability and business property coverage bundled into one policy, often at a better price than buying them separately.
A business owner’s policy, or BOP, packages general liability, business property and business income coverage. It’s designed for businesses with lower-risk operations.
Not every business qualifies. Some contractors and higher-risk trades need separate policies instead. We’ll tell you which approach fits your business.
Injuries and property damage you cause to others.
Your building, equipment, inventory and furniture.
Lost income if a covered loss forces you to close temporarily.
Options such as equipment breakdown, data breach or hired and non-owned auto.
Businesses with a storefront, office or small warehouse.
Businesses with a modest payroll and revenue.
Work with fewer hazards than heavy construction.
Certain contractors qualify, depending on the carrier and type of work.
A business owner’s policy is built for small, lower-risk businesses. The California Department of Insurance describes it as a combined policy often purchased by small to mid-size businesses. Each carrier sets its own eligibility rules, but they usually look at:
If you don’t qualify, the same protection is available through separate general liability and commercial property policies.
A BOP is convenient, but it’s not everything a business needs. These are usually not included, or only available as limited add-ons:
Some of these can be added by endorsement, depending on the carrier. Others need their own policy.
Because the liability and property parts are written together, a BOP often uses one deductible for property claims and shares common definitions across coverages. Business income coverage is frequently included, which pays lost income and some continuing expenses after a covered property loss forces a temporary closure.
The trade-off is less flexibility. Limits and options are set by the carrier’s program, so a business with unusual property, high values or specialized liability needs may be better served by separate policies.
A business owner’s policy and separate general liability and property policies can protect many of the same things. The difference is in how they’re packaged:
Price matters, but so does fit. We’ll show you what each approach covers so you can compare them side by side.
The property part of a business owner’s policy usually covers the building if you own it, plus your business personal property: furniture, fixtures, equipment, supplies and inventory. Improvements you made to a rented space may also be covered, depending on the policy and your lease.
Coverage is usually limited to property at your described premises, with smaller limits for property temporarily elsewhere. If your tools spend most of their time in a truck or on job sites, a BOP alone usually isn’t enough. Contractor’s equipment coverage fills that gap.
The liability part works much like a standalone general liability policy. It usually covers bodily injury and property damage to others, personal and advertising injury and, for many businesses, products and completed operations.
Because BOP liability limits are often set by the carrier’s program, some businesses need an umbrella to meet contract or lease requirements. Additional insured endorsements for landlords and customers are commonly available, but the exact forms vary.
Many BOP programs offer add-ons that fill common gaps. Availability and limits depend on the carrier:
Add-ons often carry lower limits than a standalone policy. If one of these risks is significant for your business, a separate policy may be the better choice.
A business owner’s policy can be a good fit for many California businesses. We compare it with separate policies so you can see the difference in coverage, not just price.
If you’d like a second look at a BOP you already have, send us the declarations page and the list of endorsements. Those two documents show most of what the policy does and doesn’t include. When you’re ready, you can request a quote. A quote request doesn’t bind coverage.
Send us the requirements from your contract, lease or credentialing packet, including the certificate holder, additional insured and waiver of subrogation, so we can review your request.
No. Workers’ compensation is always a separate policy.
No. Business-owned vehicles need a commercial auto policy. Some BOPs can add hired and non-owned auto coverage.
Some can, depending on the trade, the work performed and the carrier. Others need separate general liability and property policies.
Sometimes. It depends on the carrier and the type of business. A homeowners policy usually has limited coverage for business property and business liability, so it’s worth reviewing.
Usually not. Flood is commonly excluded from commercial property and BOP forms and generally needs separate coverage.
Generally no. Claims about errors in professional advice or services usually need a separate professional liability policy or a specific endorsement.
Yes, in many cases. An umbrella can sit above the BOP’s liability coverage, along with your commercial auto and employer’s liability.
The carrier may non-renew the BOP or move you to a different program. We’d then look at separate general liability and property policies that fit your new size.
Tell us what your business does and we’ll compare a BOP with separate policies.
Tell us a little about your business. A licensed broker will follow up.
