Business Insurance
What Is a BOP Policy? Business Owner's Policy Explained
BOPs bundle the two coverages every small business actually needs. Here's what's inside, what's excluded, and when to upgrade to a commercial package.
A Business Owner's Policy bundles general liability and commercial property into a single contract, usually at a discount versus standalone policies.
What's included
General liability up to $1M/$2M, commercial property for owned equipment and inventory, and business income coverage for up to 12 months of lost revenue after a covered event.
What's excluded
Professional services (need E&O), employee injuries (need workers comp), commercial auto, and cyber events. Each is available as an endorsement or standalone policy.
Who qualifies
Carriers typically limit BOPs to businesses under $5M in revenue, under 100 employees, and operating in low-to-moderate risk classes. High-hazard industries need a Commercial Package Policy instead.
Frequently asked questions
How is a BOP different from a CPP?
A Commercial Package Policy (CPP) is the customizable version: same modular structure, but no carrier caps on revenue or industry. CPPs are used by larger or higher-risk businesses.
Related reading
How Much Does Small Business Insurance Cost in 2025?
Real premium ranges for general liability, BOP, professional liability, and workers comp — by industry, revenue band, and state.