What Is a Business Owner’s Policy (BOP) and Do I Need One?
But what exactly is a BOP, and do you need one?
Let’s break it down!
Running a small business in California comes with risk—from accidents and lawsuits to theft or property damage. If you’re looking for simple, affordable coverage that protects your business from multiple angles, a Business Owner’s Policy (BOP) might be the perfect fit.
A Business Owner’s Policy offers convenient, customizable protection for small and mid-sized businesses. It’s a simple way to cover both your liability risks and your business property—without overpaying or overcomplicating your coverage.
What Is a Business Owner’s Policy (BOP)?
A Business Owner’s Policy combines two essential types of insurance into one easy-to-manage package:
1. General Liability Insurance
Protects your business against:
Bodily injury (e.g., a customer trips at your location)
Property damage (e.g., you accidentally damage a client’s space)
Personal and advertising injury (e.g., claims of slander or copyright infringement)
2. Commercial Property Insurance
Covers damage to your:
Building or office space
Furniture, equipment, inventory, signage
Loss due to fire, theft, or certain weather events
So instead of buying these two coverages separately, a BOP bundles them into one cost-effective policy.
Optional Add-Ons
Most carriers allow you to customize your BOP with add-ons like:
Business Interruption Coverage (if your operations are temporarily shut down)
Cyber Liability
Equipment Breakdown
Crime or Employee Dishonesty Coverage
Who Should Consider a BOP?
You might be a great fit for a BOP if:
You own or lease office/retail space
You have valuable equipment or inventory
You interact with customers, vendors, or the public
You want broad coverage in one simplified policy
Common Questions
Is a BOP cheaper than buying coverage separately?
Yes—bundling general liability and property coverage into a BOP is often more affordable than purchasing each policy individually.
What if I work from home?
You may still benefit from a BOP, especially if you keep inventory, equipment, or meet with clients at home.
Is a BOP required by law?
Not usually, but many landlords or client contracts will require proof of liability coverage—which is included in a BOP.
