What a BOP includes
A business owner's policy packages general liability, commercial property (building, contents, equipment, tenant improvements), and business income/extra expense into one policy at a package discount. Most carriers add optional endorsements for equipment breakdown, cyber, employment practices, and hired & non-owned auto.
Typical BOP premiums
Property values and industry class drive BOP cost more than anything else.
| Business type | Property/contents value | Typical annual premium |
|---|---|---|
| Professional office | $25K–$75K | $700 – $1,600 |
| Retail store | $75K–$250K | $1,200 – $3,200 |
| Restaurant | $100K–$400K | $2,500 – $7,000 |
| Small contractor (shop) | $50K–$200K | $1,800 – $5,000 |
| Medical / therapy office | $50K–$150K | $1,100 – $2,800 |
Who qualifies
BOP eligibility is set by each carrier, but the common gates are revenue under roughly $5M–$10M, building square footage under a set limit, and an eligible class. Higher-hazard operations (heavy construction, trucking fleets, some healthcare) get written on separate GL and property policies instead.
Where owners get it wrong
Two mistakes dominate. The first is insuring property at market value instead of replacement cost, which triggers coinsurance penalties at claim time. The second is skipping business income coverage — for most small businesses, a 60-day shutdown is a far bigger financial event than the property damage itself.
Frequently asked questions
Is a BOP cheaper than separate policies?
Usually yes. Bundling GL and property on one form typically saves 10–20% versus monoline policies, and it removes gaps between the two.
Does a BOP include workers' compensation?
No. Workers' comp is always a separate policy, though it can be written with the same carrier and billed together.
Does a BOP cover my vehicles?
No. Owned vehicles need commercial auto. Employee-owned vehicles used for work need hired & non-owned auto, which can often be endorsed onto the BOP.