Business Owners Policy (BOP) Insurance

What a BOP is — and is not

A BOP packages two coverage lines: general liability and commercial property. Most BOPs also include business income, equipment breakdown, and limited inland marine. The bundle is sold at a lower combined premium than the same coverage purchased separately. Carriers can offer this discount because they tightly control eligibility — operations with predictable risk profiles and modest exposure get the bundle, while higher-risk operations are routed to stand-alone policies.

BOP is not a substitute for workers compensation, commercial auto, or commercial umbrella. Those lines remain separate companion policies in a complete program.

Who qualifies — and who does not

Carriers cap BOP eligibility on:

• Revenue (often $5M to $10M maximum)
• Square footage (typically 25,000 sq ft or less)
• Operations type and NCCI/SIC class code
• Number of locations (some carriers cap at one)
• Owner-operator vs employee-heavy operations
• Industry-specific exclusions (most amusement, roofing, large restaurants)

Importantly for our specialty clients: inflatable rental operators, amusement device operators, mechanical bull, axe throwing, and roofing contractors usually do not qualify for a BOP. Those operations need stand-alone policies (which we write through specialty markets) or a Commercial Package Policy (CPP).

BPP vs commercial property

BPP (business personal property) is the inventory, equipment, and contents inside your premises — the furniture, the computers, the inventory on the shelves. Commercial property typically covers both the building (when you own it) and the BPP. BOPs commonly include BPP and may or may not include the building depending on the form you choose. We confirm the structure during the quote.

What a BOP does NOT include

• Workers compensation — required separately when you have employees
• Commercial auto — vehicles your business owns or hires
• Commercial umbrella — excess liability above primary lines
• Professional liability and E&O — separate policy
• Liquor liability — separate endorsement or stand-alone
• Cyber liability — separate policy
• Pollution liability — separate policy
• Specialty exposures excluded by the BOP form

When to graduate from a BOP

Operators outgrow BOPs when:

• Revenue or square footage exceeds carrier eligibility caps
• You add a class code (food service, liquor, specialty equipment) outside BOP scope
• You need higher limits than the BOP offers
• You add a second location and the carrier prefers a Commercial Package Policy (CPP)

At graduation we migrate to a CPP, which uses the same coverage forms but with independently structured limits, deductibles, and endorsements per line. We manage the transition so there is no coverage gap.

Frequently asked questions