Business owner's policy (BOP): what it covers, who qualifies and what it costs
A business owner's policy (BOP) puts general liability and property insurance into one package, and adds business income cover that pays your bills while you are closed after a fire or other covered loss. If you rent or own a shop, office or studio and fit the insurer's size rules, a BOP is usually the cheapest way to buy that cover; the Texas Department of Insurance says package policies are usually cheaper than buying the coverages separately. Insureon's small-business customers pay a median of $83 a month for one (Insureon, page updated 17 April 2026). It is one of the core coverages on our business insurance guide.
The catch is eligibility. Each insurer decides which businesses can buy its BOP, and the rules are wider than many owners expect: under ISO's standard rules, small contractors and restaurants can qualify.
What does a BOP cover?
Many BOPs follow, or start from, the Insurance Services Office (ISO) businessowners coverage form, BP 00 03. Verisk's ISO overview (February 2025) describes it as a self-contained package for small and midsize "Main Street" businesses with two sections:
| Section | What it covers | Example |
|---|---|---|
| Section I: property | The building if you own it, and your business personal property: furniture, equipment, stock, and improvements you made to a rented space | A burst pipe ruins your stock and fittings |
| Section I: business income and extra expense | Lost income for up to 12 months after a covered loss, 60 more days of extended income while you rebuild trade, and extra costs to keep running | Your café closes for six weeks after a kitchen fire and you still owe rent and wages |
| Section I: additional coverages | Civil authority (when officials close access to your premises, from 72 hours), debris removal, pollutant clean-up up to $10,000, fire department charges up to $2,500, valuable papers and accounts receivable up to $10,000 each | The fire service bills you for attending a fire at your unit |
| Section II: liability | Bodily injury and property damage to others, personal and advertising injury, and medical payments up to $5,000 per person regardless of fault; defence costs are paid on top of the limits | A customer slips on your wet floor |
Those dollar amounts are ISO's standard figures. Insurers using their own forms can set different ones, so check your quote.
Three property terms decide how much a claim pays. ISO's BOP pays replacement cost (what it costs to replace the item new, not its depreciated value), subject to an 80% insurance-to-value condition: insure your property for less than 80% of its replacement cost and the insurer can cut your claim payment in proportion. The base deductible in ISO's form is $500. Learn more in our guide to commercial property insurance.
What a BOP does not cover
| Not in a standard BOP | The policy that covers it |
|---|---|
| Injuries to your employees | Workers' compensation |
| Vehicles you own | Commercial auto |
| Claims that your advice or professional work caused a client a financial loss | Professional liability (E&O) |
| Data breaches and cyber attacks | A cyber endorsement or cyber policy |
| Flood and earthquake | Separate flood or earthquake cover |
| Tools and equipment away from your premises | Inland marine (tools and equipment) cover |
| Wrongful termination, discrimination and harassment claims | Employment practices liability (EPLI) |
| Liability above the BOP's limits | Commercial umbrella |
The Hartford lists workers' comp, professional liability, commercial auto and data breach as outside its BOP unless added. Progressive Commercial says a BOP doesn't cover employees and often excludes earthquakes and floods.
Who is eligible for a BOP?
Eligibility depends on the insurer, and many insurers start from ISO's rules. Under ISO's current rules, a business is eligible if it is one of the listed risk types and stays within the size limits for that type. The listed types are apartments, auto service, cannabis retail and distribution, condominium commercial unit-owners, contractors, convenience and grocery stores, light manufacturing, hotels and motels, retail (including online retailers), offices (including healthcare offices), processing and service businesses, restaurants, self-storage, and wholesalers and distributors.
| Business type | ISO BOP size limits (Verisk overview, February 2025) |
|---|---|
| Most eligible risks | Up to 35,000 sq ft total floor area and $6 million annual gross sales per location |
| Offices | Up to 100,000 sq ft and six stories |
| Contractors | Annual payroll up to $300,000, exterior work no higher than three stories, subcontracted work no more than 10% of gross sales, no equipment rented to others |
| Restaurants | Up to 7,500 sq ft. Limited-cooking: up to 75 seats, beer and wine up to 25% of sales. Quick service: up to 150 seats, beer and wine up to 25%. Full service: up to 150 seats, alcohol up to 50% |
| Processing and service businesses | No more than 25% of sales from work done off your premises |
| Wholesalers | No more than 25% of sales at retail and no more than 25% of floor space open to the public |
Older ISO rules used lower limits, so older articles you find may quote smaller numbers.
Insurers then add their own headline rules. Three published examples, read on 10 October 2026:
| Insurer | Published BOP eligibility |
|---|---|
| Nationwide | Businesses located outside the home with fewer than 100 employees and less than $5 million in sales |
| Coterie | 50 or fewer employees and $10 million or less in revenue; for contractors, at most 15 employees and $5 million |
| Insureon (broker) | Typically a low-risk industry, fewer than 100 employees, under $1 million in revenue and a small commercial space |
These rules change, and one insurer's pages don't always agree with each other: Coterie's agent guide quotes different employee and revenue caps from its product page. Treat any published number as a starting point and ask the insurer.
Some businesses rarely fit. Coterie names heavy manufacturing, large-scale food production and businesses with a lot of commercial auto exposure as businesses that may not qualify. When you outgrow a BOP, the usual next step is a commercial package policy (CPP), which carries the same coverages with room for higher limits and specialist parts.
Do you qualify? If your business is one of the types above, stays under its size limits and works from a premises outside your home, there is a good chance a BOP is available. A broker can check which carriers will write one for your class: compare business insurance quotes.
Who should buy a BOP?
Owners with a physical space and things in it to protect: stock, equipment, furniture, or improvements to a rented unit. Typical buyers include:
- Restaurants, cafés and caterers, within the seat and alcohol limits above
- Retail stores, including shops that also sell online
- Hair salons and other personal-service studios
- Offices of consultants, accountants and agencies
- Small contractors and trades with a shop or yard, within ISO's payroll and height limits
If you work from home with a laptop and nothing else, general liability alone may be enough, and professional liability probably matters more.
BOP vs general liability: which do you need?
| Question | If yes | If no |
|---|---|---|
| Do you own or rent a space with property worth insuring? | Price a BOP | GL alone may do |
| Would a fire or flood at your premises stop your income? | BOP (business income is built in) | GL alone may do |
| Do you fit your insurer's BOP size and class rules? | BOP | GL plus separate property, or a CPP |
| Does a lease or contract require property cover or business income cover? | BOP | Either |
Both include the same kind of liability cover. A BOP adds property and business income on top, and because it is a package it is usually cheaper than buying GL and a property policy separately. The general liability guide explains what that liability half covers and excludes.
How much does a BOP cost?
Insureon's small-business customers pay a median of $83 a month for a BOP, about $996 a year, with annual premiums from around $400 to over $6,000 (Insureon, updated 17 April 2026). Insureon calls the figure an average in its headline; its method note says it is the median of policies its customers bought.
| Source | Monthly figure | What it measures |
|---|---|---|
| Insureon | $83 | Median premium, Insureon's small-business customers |
| Progressive Commercial | $80 | Median premium, new Progressive Commercial BOP customers, 2025 |
| Progressive Commercial | $127 | Average premium, the same customers |
The median is the better guide for a small business. Progressive's average is $47 higher than its median because a minority of large or high-risk policies pull it up.
Your industry moves the price far more than anything else. Median monthly BOP premiums for Insureon's customers, from Insureon's class cost pages (checked 10 October 2026):
| Business | BOP median per month | BOP median per year |
|---|---|---|
| Photographer | $47 | $570 |
| Consultant | $61 | $732 |
| Hair salon | $70 | $841 |
| Janitorial / cleaning business | $77 | $919 |
| Electrician | $100 | $1,198 |
| General contractor | $125 | $1,503 |
| Coffee shop / café | $126 | $1,507 |
| Auto repair shop | $149 | $1,787 |
| Plumber | $213 | $2,559 |
| Restaurant | $337 | $4,045 |
| Bar / tavern | $346 | $4,148 |
Costs by industry and state, the $2 million question and ways to pay less are in our guide to business owners policy cost.
What can you add to a BOP?
In ISO's form, several coverages are optional for an extra premium rather than built in: equipment breakdown, employee dishonesty, money and securities, and outdoor signs. Some insurers include equipment breakdown in their own BOPs, so compare what each quote actually contains. Other common add-ons:
- Hired and non-owned auto liability. Covers liability when staff drive their own or rented cars for work. In ISO's BOP endorsement it is excess cover, paying after the driver's own auto policy. See hired and non-owned auto insurance. It does not cover vehicles your business owns.
- Data breach or cyber. Several insurers, including The Hartford, let you add data breach cover. If you hold a lot of customer data, ask whether a standalone cyber policy is the better buy.
- Professional liability. Some insurers allow it on a BOP for certain service businesses; others only sell it as a separate policy.
- Employment practices liability (EPLI). Available as an endorsement from some insurers.
Is a BOP required by law?
No state requires a BOP itself. Leases and client contracts often require the coverages inside it, often general liability at $1 million per occurrence and $2 million aggregate, and sometimes property or business income cover. Insureon's BOP FAQ makes the same point.
Which insurers offer a BOP for your industry?
In QuoteSweep's appetite dataset we count a carrier only when we read its stance on the carrier's own product page for that industry. Of those pages, checked 4 to 9 March 2026, this many list a BOP:
| Industry | Carriers with a product page we checked | List a BOP |
|---|---|---|
| Professional services | 17 | 16 |
| Retail stores | 16 | 15 |
| Restaurants | 19 | 15 |
| Technology companies | 18 | 15 |
| Real estate | 12 | 11 |
| Healthcare offices | 10 | 8 |
| General contractors | 22 | 8 |
| Manufacturing | 19 | 4 |
| Trucking | 7 | 0 |
Office, retail and restaurant businesses have the widest choice. Contractors and manufacturers have far fewer carriers offering a BOP on their product pages, which matches ISO's tighter contractor rules. A missing listing is not a refusal, so ask. None of the trucking carrier pages we checked list a BOP. Our observed appetite research explains the method.
How to get a BOP quote
You'll need your business description, revenue, payroll and employee count, the address, square footage and construction of your premises, the replacement value of your equipment and stock, whether you own the building, and your claims history. Our checklist of what you need for a business insurance quote covers the rest. Then compare business insurance quotes and ask for a BOP and a GL-only price side by side.
Frequently Asked Questions
What is a business owner's policy (BOP)? A BOP is a package policy for small and midsize businesses that combines general liability, property cover for your building and contents, and business income cover. It is usually cheaper than buying those coverages separately.
What does a BOP not cover? A standard BOP does not cover employee injuries (workers' comp), vehicles you own (commercial auto), professional mistakes (professional liability), and usually flood, earthquake and large cyber losses. Each needs its own policy or endorsement.
Can contractors get a BOP? Often, if they are small. ISO's rules allow contractors with annual payroll up to $300,000, exterior work no higher than three stories and no more than 10% of sales subcontracted. Larger or higher-hazard contractors usually need a commercial package policy.
How much does a BOP cost? Insureon's small-business customers pay a median of $83 a month, and Progressive Commercial's new customers paid a median of $80 a month in 2025. Industry moves it most: Insureon's medians run from $47 a month for photographers to $337 for restaurants and $346 for bars.
What is the difference between a BOP and general liability? General liability covers injury and damage you cause to other people. A BOP includes that same liability cover and adds property insurance for your own building, equipment and stock, plus business income cover if a covered loss closes you.
What is the difference between a BOP and a commercial package policy? A BOP is a pre-built package with set eligibility rules for small businesses. A commercial package policy (CPP) combines similar coverages but is built to order, with higher limits and specialist parts, for businesses too large or complex for a BOP.
Does a BOP cover my employees' cars? Not on its own. You can add hired and non-owned auto liability, which in ISO's version pays after the employee's own auto insurance. Vehicles your business owns need commercial auto.
Do I need a BOP if I work from home? Often not. Home-based businesses with little equipment may only need general liability, and some insurers' BOPs require a premises outside the home. Check whether your homeowners policy excludes business property before you decide.
