Most businesses start here · BOP
Business owner's policy
A package for small businesses that combines property, general liability and business income insurance in one policy, usually for less than buying them separately.
- Who it's for
- Small, lower-risk businesses such as shops, offices, cafés and consultancies. Insurers set limits on size and revenue, and some trades don't qualify.
- Is it required?
- Not by law, but landlords, lenders and clients often require the liability part.
Covered and not covered
Usually covered
- Your building if you own it, and your equipment, furniture and stock
- Claims that your business injured someone or damaged their property
- Lost income and ongoing bills while you're closed after covered damage
- Advertising injury, like accidentally using someone's photo in an ad
Usually not covered
- Employee injuries, which need workers' comp
- Mistakes in professional advice, which need professional liability
- Vehicles, which need commercial auto
- Data breaches, which need cyber insurance
- Flood and earthquake
- Employment claims like wrongful firing, which need EPLI
Real-life examples
A customer slips on a wet floor in your shop.
Usually coveredThe general liability part pays their medical bills and any claim, plus your defense.
A fire closes your café for six weeks.
Usually coveredThe property part pays for repairs and equipment; business income pays the profit you lose and ongoing bills like rent and payroll.
Your employee cuts a hand badly in the kitchen.
Usually not coveredInjuries to employees aren't covered by a BOP. That's workers' comp, which most states require once you have employees.
Check your own policy
Find these on your policy or declarations page, or ask your agent:
- Property limits for equipment and stock
- Business income: how many months and how much
- Liability limits your lease or contracts require
- Add-ons you may need, like equipment breakdown or spoilage
Not sure where to look? See how to read your policy.