Business Owners Policy (BOP) Explained in Plain English

A Business Owners Policy bundles three coverages small businesses almost always need, at a price lower than buying them separately.

What is inside

General liability covers third-party bodily injury and property damage — the customer who slips in your shop. Commercial property covers your building, inventory, equipment and furniture. Business interruption replaces lost income while you are shut down after a covered loss, which is the part owners underestimate most.

Who qualifies

Carriers write BOPs for lower-hazard businesses under a revenue and square-footage threshold: offices, retail, restaurants, light service. Manufacturing, contracting and anything with heavy fleet exposure usually needs a package policy instead.

What it does not cover

Professional liability, cyber, auto, workers’ compensation and employment practices are all separate. A BOP is a foundation, not a complete program.

Getting the limits right

Insure property at replacement cost, and set the business interruption period long enough to survive a rebuild — twelve months is common, and short periods are where claims disappoint.