Last Updated on October 16, 2026 by Syed Sarim Naqvi
A business owner’s policy (BOP) bundles general liability, commercial property and business interruption cover into one discounted policy for small, lower-risk businesses. It typically costs 10% to 15% less than buying the pieces separately, one summary puts median premiums at roughly $57 to $83 a month, and it still leaves out vehicles, employee injuries, professional mistakes and cyber risk.
Key Takeaways
- A BOP combines general liability, commercial property and business interruption in one policy
- Beancount’s summary of industry data says it costs 10% to 15% less than separate policies and reports a median of about $57 to $83 a month ($684 to $1,000 a year)
- Insureon says a typical BOP-eligible business has under $1 million in revenue, and eligibility also depends on risk and size
- Common defaults are $1 million per occurrence and $2 million aggregate liability limits, which many leases and client contracts require
- A BOP does not cover commercial auto, workers’ compensation, professional liability or, usually, cyber, and it excludes flood and earth movement
What Is a Business Owner’s Policy?
Acrisure describes a BOP as combining commercial property and commercial general liability into one policy, usually with business interruption included. Insurance.com quotes an Insureon sales director saying small business owners should consider a BOP because it bundles general liability with commercial property and typically costs less than buying them separately. Fortune notes the business interruption portion works with the property cover to help you recover after covered property damage.
What Does Each Part Cover?
| Part | What It Covers |
|---|---|
| General liability | Third-party bodily injury, property damage, product claims and advertising injury such as libel, slander or copyright infringement |
| Commercial property | Building, inventory, equipment and fixtures damaged by covered perils |
| Business interruption | Lost income and operating expenses such as payroll, rent and taxes when a covered property loss closes the business temporarily |
The table draws on Beancount’s guide and Simply Business, which explains that business interruption within a BOP helps replace lost income and pay operating expenses if you must close temporarily after a covered claim such as fire, storm or theft.
Who Qualifies?
TechInsurance says eligibility mainly depends on how risky the business is to insure, and that small businesses usually need less than one year of business interruption cover to be approved. Insurance.com says insurers consider employee count and annual revenue, and Insureon says a typical BOP-eligible business has less than $1 million in revenue. Beancount adds that contractors and manufacturers with heavy equipment or higher liability exposure often need a commercial package policy with more customizable limits instead.
How Much Does a BOP Cost?
Beancount reports a typical saving of 10% to 15% compared with buying general liability and commercial property separately, and a median BOP premium of roughly $57 to $83 a month ($684 to $1,000 a year), with about 42% of small businesses paying under $50 a month. A cost page for food trucks from Insureon reports a $1,260 annual median for a BOP in that industry, which shows how much industry matters. Chubb lists location, property values, weather risk and crime rates as factors in the property portion. As an illustration only, $57 to $83 a month works out to $684 to $996 over twelve months.
- Industry and size: riskier trades and larger revenue raise the premium
- Property value and location: weather and crime risk influence property pricing
- Limits: Beancount says most policies default to $1 million per occurrence and $2 million aggregate for general liability
What Does a BOP Leave Out?
Beancount’s eligibility guide lists the usual gaps. Business-owned vehicles need commercial auto, claims by employees such as discrimination or harassment are excluded from general liability and need their own policy, and BOP property cover excludes flood and earth movement. The same guide says cyberattacks and data breaches need a cyber endorsement or standalone policy, and a broker article lists workers’ compensation, cyber, professional liability and commercial auto as separate coverages to add.
How Long Should Business Interruption Last?
TechInsurance says small businesses usually need less than one year of business interruption cover to be approved for a BOP, so the policy’s income limit and restoration period are worth checking against how long a rebuild would really take. Our business interruption guide explains waiting periods and civil authority rules that sit inside this part of the bundle.
How Does This Connect to the Rest of Specialty Insurance?
A BOP is the core that other small-business policies attach to. See the income side in Business Interruption Insurance Explained, the missing vehicle piece in Commercial Auto Insurance Explained, and the employee pieces in Workers’ Compensation Insurance Explained and Employment Practices Liability Insurance (EPLI) Explained. For a real-world bundle, read Food Truck Insurance Explained, and for cyber gaps, Cyber Liability Insurance Explained.
FAQ
What is a business owner’s policy?
A bundle of general liability, commercial property and business interruption insurance for small businesses.
How much does a BOP cost?
One summary puts median premiums at roughly $57 to $83 a month, though industry and location change the price a lot.
Is a BOP cheaper than separate policies?
Usually, with savings of about 10% to 15% reported.
Who is eligible?
Small, lower-risk businesses, typically under $1 million in revenue, depending on the insurer.
Does a BOP cover cyber attacks?
Usually not, so a cyber endorsement or standalone policy is needed.
Does a BOP cover company vehicles?
No. Business-owned vehicles need a separate commercial auto policy.
Does a BOP cover flood?
No. Like homeowners cover, BOP property cover excludes flood and earth movement.
Glossary
- BOP: business owner’s policy, a bundled small-business package.
- Commercial Package Policy (CPP): a more customizable package for larger or higher-risk businesses.
- General Liability: cover for third-party injury and property damage claims.
- Commercial Property: cover for buildings, inventory and equipment.
- Business Interruption: cover for lost income when a covered loss halts operations.
- Aggregate Limit: the most an insurer pays over a policy period.
Sources
- Beancount: Business Owner’s Policy, What the Bundle Covers, What It Costs and What It Leaves Out (savings, premium range, default limits, exclusions)
- Beancount: The Business Owner’s Policy Explained, Bundles, Eligibility and Gaps (eligibility, excluded coverages)
- Insurance.com: Do Small Businesses Need a Business Owner’s Policy? (definition, Insureon revenue guideline)
- TechInsurance: Business Owner’s Policy Eligibility Requirements (eligibility, limits, business interruption)
- Acrisure: What Is BOP Insurance? (bundled coverage, eligibility)
- Simply Business: Business Owner’s Policy for Small Businesses (business interruption within a BOP)
- Chubb: Business Owner’s Policy Coverage and Eligibility (pricing factors)
- Fortune: Business Owner’s Policy Insurance Explained (how interruption cover works with property)
- Insureon: Food Truck Insurance Cost (industry BOP median)
Related reading: Professional Liability (E&O) Insurance Explained · Product Liability Insurance Explained · Tattoo Shop Insurance Explained
Published October 2026. Prices, eligibility and exclusions vary by insurer, industry and state and change often; always read what your BOP excludes, and refresh this article periodically.
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