How to Quote a BOP: A Step-by-Step Guide for Commercial Agents
A business owners policy (BOP) bundles general liability and commercial property insurance into a single policy — typically saving 15–25% compared to purchasing those coverages separately. For independent agents, BOPs are the bread and butter of small commercial: high volume, relatively simple to quote, and a natural cross-sell entry point. But quoting them well — getting the right class code, selecting the right carriers, and catching the endorsements your client actually needs — is what separates a competitive proposal from a generic one.
This guide covers the full BOP quoting workflow from intake to submission, including what to collect, how carrier eligibility limits work, and the endorsements we see agents miss most often. If you're also quoting workers comp alongside the BOP, our workers comp quoting guide covers that process in detail.
Quoting a BOP requires an ACORD 125, ACORD 140, the client's revenue and employee count, building details (owned or leased, square footage, construction type), and three years of claims history. The real work is matching the account to carriers with appetite for the specific class code and catching extension endorsements — cyber, inland marine, EPLI — that the base policy doesn't include.
What a BOP Covers (and What It Doesn't)
A BOP bundles three coverages into one policy: commercial property (building if owned, contents, equipment, inventory — written on ISO special form), general liability (standard limits: $1M per occurrence / $2M aggregate covering bodily injury, property damage, and personal/advertising injury), and business income / business interruption (lost revenue during a covered property loss). Most BOPs also include equipment breakdown and limited employee dishonesty.
What's not included — and needs separate policies:
- Workers compensation — required in all states except Texas for most private employers; see our workers comp quoting guide
- Commercial auto — business-owned vehicles need a separate policy
- Professional liability / E&O — claims from professional services or advice
- Full cyber liability — BOP cyber sublimits (often $25K–$100K) are rarely sufficient
- Employment practices liability (EPLI) — wrongful termination, discrimination, harassment
- Umbrella / excess liability — for limits above $1M/$2M
Every BOP conversation should include a brief coverage gap analysis. Even if the client only buys the BOP today, documenting the discussion protects the agency from E&O exposure.
What You Need From the Client
Before opening a single carrier portal, collect these items. An incomplete submission either stalls the quote or produces pricing that won't hold at binding.
| Item | Why It Matters | Where to Get It |
|---|---|---|
| ACORD 125 (Commercial Insurance Application) | Standard application — general section used for all commercial lines | Client completes; agent verifies |
| ACORD 140 (Property Section) | Captures building details, property values, and construction data | Client + building owner/landlord |
| Revenue (past 12 months and projected) | Primary GL exposure base; also affects carrier eligibility | Client's financials or accountant |
| Employee count and payroll | Some carriers use employee count as a rating factor | Client |
| NAICS or SIC code | Determines ISO class code and carrier appetite | Client's tax returns or Census NAICS lookup |
| Building details (if applicable) | Construction type, year built, square footage, sprinkler status, owned vs. leased | Client or landlord |
| Property values | Replacement cost of contents, equipment, inventory, and tenant improvements | Client's asset list or accountant |
| Three years of claims history / loss runs | Carriers evaluate prior losses for pricing and eligibility | Request from current carrier (allow 7–10 days) |
| Prior coverage declarations page | Shows current limits, deductibles, and premium — useful for benchmarking | Client |
A note on leased spaces. When the client leases, they insure only business personal property and tenant improvements — not the building. But most commercial leases require specific liability limits and name the landlord as additional insured. Ask for a copy of the lease before quoting.
Step-by-Step Quoting Process
Step 1: Verify the Class Code
The class code drives both pricing and carrier eligibility. BOP class codes are typically based on ISO classifications or carrier-proprietary codes mapped to NAICS codes. The distinction matters because not every carrier writes every class.
A "consulting firm" might fall into several different class codes depending on what they actually do. Management consulting, IT consulting, and engineering consulting carry different risk profiles and different rates. We've seen agents lose accounts because they used a generic "consulting" classification that mapped to a higher-rated code when a more specific — and cheaper — code was available.
Ask the client to describe what their employees physically do on a daily basis. What are the primary services? Do they visit client sites? Do they manufacture, install, or repair anything? The answers determine the correct code.
Step 2: Confirm BOP Eligibility
Not every account qualifies for a BOP. Carriers set eligibility limits that define what "small business" means to them, and those limits vary significantly.
| Eligibility Factor | Typical Range | Notes |
|---|---|---|
| Annual revenue | $1M–$10M (varies by carrier and class) | Some carriers cap at $3M; others allow up to $10M |
| Square footage | 25,000–100,000 sq ft | Retail and office typically lower limits than warehousing |
| Employee count | 25–100 | Less commonly used as a hard limit |
| Number of locations | 1–3 | Multi-location businesses may need a commercial package |
| Business age | 1+ year (some accept new ventures) | New ventures have fewer carrier options |
When we work with agents on borderline accounts — say, a retail business at $4.5 million in revenue — the answer often depends on which carriers you check. One carrier might cap BOP eligibility at $3 million for that class, while another allows $7 million. This is exactly the scenario where broad carrier access matters.
If the account exceeds BOP eligibility across your panel, the client needs a commercial package policy (CPP) with separate property and GL forms — different forms, but functionally similar coverage.
Step 3: Gather Building and Property Data
The property component requires more detail than most agents initially collect. Missing data means the carrier either declines to quote or returns an indication rather than a bindable quote.
For owned buildings, you need: year built, construction type (frame, joisted masonry, non-combustible, fire-resistive), square footage, stories, roof age and type, sprinkler status, fire and security alarms, and distance to nearest fire station.
For leased spaces, you need: business personal property replacement cost, tenant improvements and betterments value, and the lease's insurance requirements (liability limits, additional insured endorsements).
We've found that the property values clients provide on initial intake are wrong about 40% of the time — usually understated. A restaurant owner might list $50,000 in contents when the actual replacement cost of commercial kitchen equipment, furniture, POS systems, and inventory is $150,000. Undercoverage creates a coinsurance problem and an E&O exposure for the agency. Push back on low property values.
Step 4: Select Carriers Based on Appetite
This is where carrier appetite knowledge directly translates to competitive quotes and faster turnaround. Submitting to carriers that don't write the class code wastes time.
Carrier appetite factors for BOP:
- Class code — Some carriers won't write restaurants with liquor exposure. Others specialize in hospitality.
- State — A carrier competitive in Ohio may not write BOP in Florida at all.
- Revenue and size — Eligibility limits vary. A carrier's appetite for a $500K account differs from a $5M account.
- Building age — Carriers are increasingly selective about older buildings with outdated wiring or roofing.
- Loss history — Clean history (three years, no claims) opens doors. Frequent claims narrow the field.
For pricing ranges by business type and carrier competitiveness by class, see our BOP insurance cost guide.
Step 5: Submit to Multiple Carriers
The median BOP costs about $83 per month ($1,000 per year), with 42% of small businesses paying under $50 per month. But that's a median across all classes and carriers. The pricing spread on any given account across 10+ carriers can easily reach 40% or more between the highest and lowest quotes.
When we run a BOP account across a full carrier panel, we typically see meaningful variation — enough that the difference between quoting three carriers and quoting twelve is often hundreds of dollars in annual premium for the client. That's the difference between winning and losing the account.
Submit the ACORD 125 and ACORD 140 to each carrier. Most portals also require entering data directly into their proprietary system, which means re-keying the same information for each submission.
Step 6: Compare Quotes and Build the Proposal
When quotes return, compare more than the bottom-line premium:
- Property valuation basis — replacement cost vs. actual cash value. Replacement cost is almost always the right answer.
- Deductible options — $2,500 or $5,000 instead of $1,000 reduces premium meaningfully for clients who can absorb a small loss.
- Included endorsements — some carriers include equipment breakdown, basic cyber, and hired/non-owned auto in their standard form. Others charge extra.
- Coinsurance percentage — usually 80% or 90%. Ensure property values meet the requirement to avoid a penalty at claim time.
Present two or three options: a budget option (higher deductible, standard limits), a recommended option (appropriate endorsements included), and a comprehensive option (enhanced limits, all relevant endorsements). This framing avoids the "cheapest wins" dynamic and positions you as an advisor.
BOP Extensions and Endorsements Agents Miss
The base BOP covers the fundamentals, but most small businesses need at least one or two endorsements to close coverage gaps. These are the ones we see agents overlook most frequently.
Cyber liability. Many BOPs include a cyber sublimit of $25,000 to $100,000, but for businesses handling customer data or processing credit cards, that's insufficient. The average data breach costs $4.88 million globally, and even a small business breach can run $120,000 or more. A standalone cyber policy or meaningful cyber endorsement should be part of every BOP conversation.
Inland marine. Standard commercial property covers assets at the insured location. Equipment that travels — a contractor's tools on a job site, a photographer's gear at a shoot — needs inland marine coverage. This is the gap that generates the most "I thought I was covered" claims we hear about from agents.
Hired and non-owned auto. If employees drive personal vehicles for business purposes or the business rents vehicles, this endorsement fills the liability gap. Typically $150–$300 annually — inexpensive for the exposure it covers.
EPLI. With 88,531 EEOC charges filed in FY 2024, employment-related claims are a consistent exposure. Some carriers offer EPLI as a BOP endorsement rather than requiring a standalone policy — often more cost-effective for businesses with fewer than 25 employees.
Additional insured endorsements. Leases and vendor contracts frequently require the business to name another party as additional insured. Forgetting this at inception creates a compliance gap that surfaces at the worst time — when a claim is filed.
Common Pitfalls That Cost Agents Time and Accounts
Pitfall 1: Submitting to carriers that don't write the class. We've seen agents spend 30 minutes in a carrier portal only to get declined because the carrier doesn't write that class code in that state. Check appetite before submitting.
Pitfall 2: Wrong class code assignment. A bakery with catering has a different class code than a retail-only bakery. Misclassification affects premium at inception and creates audit exposure at policy end.
Pitfall 3: Understating property values. When the client reports $40,000 in business personal property but actual replacement cost is $120,000, the coinsurance clause reduces claim payments proportionally. Always verify with follow-up questions about specific equipment categories.
Pitfall 4: Ignoring the lease. The commercial lease specifies required limits, additional insured requirements, and sometimes specific coverage forms. Quoting without reviewing it means rework after binding — or the landlord rejecting the certificate.
Pitfall 5: Not discussing coverage gaps. A BOP is not a complete commercial program. Agents who skip the workers comp, cyber, professional liability, and umbrella conversation create E&O exposure for the agency. Even if the client declines, document the discussion.
When a BOP Is Not the Right Fit
Not every small business belongs in a BOP. Accounts that exceed eligibility limits (revenue, square footage, employee count) need a commercial package policy with separate GL and property forms. High-hazard operations — heavy manufacturing, explosive/flammable materials — are typically ineligible for BOP entirely. And businesses with complex property schedules (multiple locations, high-value specialized equipment, significant inventory fluctuations) often need standalone commercial property with scheduled coverage and agreed-upon values.
The honest conversation builds trust: "Your business has outgrown the BOP format, and that's a good thing — it means you're growing. Here's how we structure coverage for businesses at your stage."
Frequently Asked Questions
How much does a BOP cost for a small business?
The median BOP premium is approximately $83 per month ($1,000 per year) across all business types. Costs range from $300 per year for a home-based e-commerce business to $6,000+ for a restaurant with liquor exposure. For a full pricing breakdown by business type, see our BOP cost guide.
What ACORD forms do I need to quote a BOP?
ACORD 125 (Commercial Insurance Application) and ACORD 140 (Property Section). ACORD 125 captures business information and requested coverages. ACORD 140 captures building details, property values, and construction type. Some carriers use proprietary portals instead of paper forms, but the data requirements are the same.
Can a new business get a BOP?
Yes, though carrier options are more limited. Some carriers require at least one year of operations. Others — including several insurtech carriers — will write new ventures. Expect fewer carrier options and potentially higher pricing compared to established businesses with clean loss history.
How is a BOP different from a commercial package policy?
A BOP is a pre-packaged GL and commercial property bundle for small businesses meeting specific eligibility criteria. A commercial package policy (CPP) uses the same ISO coverage forms but allows more customization — manuscript endorsements, higher limits, scheduled property. The CPP is for businesses that exceed BOP eligibility limits or need tailored coverage. Both provide GL and property; the BOP is simpler and usually cheaper for qualifying businesses.
What endorsements should I always recommend with a BOP?
At minimum, discuss hired and non-owned auto (if employees drive for business), cyber liability (if the business handles customer data or processes payments), and additional insured endorsements (if required by leases or contracts). For businesses with employees, EPLI belongs in the conversation. For businesses with portable equipment, inland marine fills a critical gap.
