Business Owners Policy (BOP)
A Business Owners Policy packages general liability, commercial property, and business income into one form for businesses that fit an insurance carrier's small business eligibility.
How this coverage works
What a BOP actually packages
A Business Owners Policy is a pre-assembled program. Instead of buying general liability and commercial property separately, both are issued on one policy with shared declarations, one bill, and one renewal date.
Most BOP forms also build in business income and extra expense coverage, which responds when a covered property loss interrupts your operations. The included limits are set by the form, so they should still be reviewed against your actual revenue.
Where eligibility ends
Every insurance carrier files its own BOP eligibility rules. Common limits involve square footage, annual revenue, number of locations, building age, and the hazard level of the work performed.
When a business grows past those thresholds, or performs work an insurance carrier keeps off the BOP, coverage generally moves to a Commercial Package Policy where each line is underwritten individually.
Details to review
- Liability and property written on one coordinated form
- Business income and extra expense usually included
- Simpler renewals and one set of policy dates
- Eligibility depends on class of business, size, and location
- Optional endorsements add equipment, tools, and scheduled property
- Pricing commonly based on payroll, sales, or square footage
- Certificates of insurance issued for landlords and clients
What the coverage includes
Coverage names, terms, and availability vary by insurance carrier and state. These descriptions are educational and are not a policy contract.
Common optional add-ons
Endorsements change what a policy covers. Availability differs by insurance carrier and state.
Additional insured
Extends certain liability protection to a party you contract with, as required by the written agreement.
Waiver of subrogation
Gives up the insurance carrier's right to recover from a party named in your contract. Availability varies.
Blanket certificate handling
Sets up recurring certificate issuance for landlords, clients, and general contractors.
Primary and non-contributory wording
Commonly requested in commercial contracts to establish how policies respond to a shared claim.
Who this is generally written for
Eligibility is set by each insurance carrier and can differ by state. Nothing here is a guarantee of eligibility or coverage.
Commonly a good fit
- Businesses with an active operation, revenue history, and a described scope of work
- Owners who can describe payroll, locations, and subcontractor use
- Operations that meet the insurance carrier's underwriting appetite for the class of business
Worth a conversation first
- Recent claims activity, lapses in coverage, or a change of ownership
- Work performed at heights, below grade, or on critical infrastructure
- Contracts with insurance requirements above standard limits
Availability varies by state
State regulation notice
- Monopolistic workers compensation states
- A small number of states require workers compensation through a state fund rather than a private insurance carrier.
- Catastrophe-exposed regions
- Coastal wind, wildfire, and earthquake exposures often require separate deductibles, sublimits, or specialty markets.
- Licensed trades and permits
- Some states and municipalities require specific bond forms or minimum liability limits before a permit is issued.
Frequently asked questions
Coverage that often comes up next
Related coverage worth reviewing at the same time. Nothing is added without your direction.
- Workers CompensationStatutory benefits for work-related injury and illness.
- Medical care and lost wages for work-related injuries
- Employers liability protection for injury lawsuits
- Rated on payroll, so accurate class codes matter at audit
Program review: liability, property, and workers compensation
Most businesses are better served by a coordinated program than by separate unrelated policies. A licensed insurance professional can review how your liability, property, auto, and workers compensation coverage fit together, and where a package or umbrella changes the outcome. Availability and pricing vary by insurance carrier and state.
- Business Owners Policy or Commercial Package Policy
- Workers Compensation
- Commercial Auto
- Commercial Umbrella
- Commercial UmbrellaAdditional limits above general liability, auto, and employers liability.
- Adds limits above liability, auto, and employers liability
- Responds when an underlying policy's limits are used up
- Often required by contracts asking for higher limits
Ready to compare your options?
Start online in a few minutes or speak with a licensed insurance professional. There is no obligation, and quoting does not bind coverage.
Insurance coverage is not bound or effective unless and until it has been confirmed in writing by TruvaLink Insurance Agency or an authorized representative of the applicable insurance carrier. Submission of a quote request, application, payment, or other information does not guarantee coverage or constitute proof of insurance.