Business Owner's Policy (BOP)
Three essential coverages, one convenient package, one lower price.
A Business Owner's Policy bundles general liability, commercial property, and business interruption coverage into a single, cost-effective package. It's the most popular choice for small businesses because it provides comprehensive protection at a significant discount compared to buying each policy separately.
Get a BOP Quote
See how much you can save with bundled coverage
What a BOP Bundles Together
Every BOP includes these three core coverages working together:
General Liability Insurance
Covers third-party claims of bodily injury, property damage, and personal/advertising injury. If a customer slips in your store or you accidentally damage a client's property, this coverage responds.
Commercial Property Insurance
Protects your building (if owned), equipment, inventory, furniture, and business personal property against fire, theft, vandalism, and other covered perils. Covers both real and personal property.
Business Interruption Insurance
Replaces lost income and covers ongoing expenses (rent, payroll, utilities) if a covered event forces you to temporarily close. This coverage can be the difference between surviving a disaster and going out of business.
Common Add-On Coverages
Many BOPs include or can add these valuable coverages:
Equipment Breakdown
Covers repair or replacement when essential equipment fails—HVAC systems, refrigeration units, computers, and more.
Spoilage Coverage
For restaurants and food businesses: covers inventory loss due to power outages or equipment failure.
Hired & Non-Owned Auto
Liability coverage when employees use personal vehicles or rental cars for business purposes.
Employee Dishonesty
Protection against theft or fraud committed by employees—an unfortunately common occurrence.
Outdoor Signs
Covers damage to your business signage from vandalism, weather, or accidents.
Valuable Papers
Covers the cost to reconstruct or replace important business documents that are lost or destroyed.
What's NOT Covered
A BOP is comprehensive, but it doesn't cover everything. You may need separate policies for:
Who Qualifies for a BOP?
BOPs are designed for small to medium-sized businesses with relatively low to moderate risk. Insurers have specific eligibility criteria based on business type, size, and revenue.
Typically Eligible
Retail Stores
Clothing boutiques, gift shops, convenience stores, specialty retailers
Office-Based Businesses
Accountants, consultants, real estate agencies, insurance agencies
Restaurants & Cafes
Small restaurants, coffee shops, bakeries, delis (some exclusions may apply)
Service Businesses
Salons, dry cleaners, repair shops, pet groomers
Wholesale Distributors
Small-scale distribution operations with limited inventory
Apartment Buildings
Smaller apartment complexes typically under 6 units
Usually Don't Qualify
Large manufacturing operations
Bars and nightclubs
Auto dealers and repair shops
Contractors and construction companies
Businesses with annual revenue over $5-10 million (varies by insurer)
High-hazard operations
Don't see your business type listed? Contact us—many businesses that seem ineligible can still qualify for a BOP.
Cost Savings: BOP vs. Separate Policies
The financial advantage of bundling is significant for most small businesses:
Typical Separate Policy Costs
Bundled BOP Cost
Typical savings: 15-30%
Note: Actual costs vary based on your business type, location, revenue, property values, and coverage limits. These ranges are illustrative—get a quote for accurate pricing.
Real Claims Examples
See how the BOP's multiple coverages work together in real scenarios:
Fire Damages Your Store
Scenario: An electrical fire destroys inventory, damages the building, and forces you to close for 3 months while repairs are made.
How the BOP Responds: Property coverage pays for building repairs ($45,000) and inventory replacement ($30,000). Business interruption covers your lost income ($25,000) and ongoing expenses like rent and employee wages during closure. A single policy handles the entire claim.
Customer Injury + Property Damage
Scenario: A customer trips over merchandise, falls into a display case, and is injured. The display is destroyed and inventory is damaged.
How the BOP Responds: General liability covers the customer's medical bills and any lawsuit. Property coverage replaces the display case and damaged inventory. Without a BOP, you'd file two separate claims with two different policies.
Break-In and Theft
Scenario: Burglars break through your front door overnight, stealing equipment and cash, and vandalizing your office.
How the BOP Responds: Property coverage pays for the stolen equipment ($8,000), broken door repair ($2,000), and vandalism damage ($3,000). If the damage forces temporary closure, business interruption kicks in.
Pipe Burst Closes Your Restaurant
Scenario: A pipe bursts over the weekend, flooding your restaurant and destroying the kitchen.
How the BOP Responds: Property coverage handles water damage repairs and equipment replacement. Business interruption covers 6 weeks of lost income while you rebuild. The BOP responds as one coordinated coverage.
Why Small Businesses Love the BOP
The Business Owner's Policy has been the go-to choice for small businesses for decades. Here's why:
Cost Savings
Bundling typically saves 15-30% compared to purchasing policies separately. For a small business, that can mean hundreds of dollars annually.
Simplified Management
One policy, one renewal date, one bill, one agent to call. No gaps in coverage from mismatched policy dates or forgotten renewals.
Coordinated Coverage
When a single event triggers multiple coverage types, the BOP responds seamlessly. No disputes between carriers about who pays what.
Business Interruption Included
Many businesses don't realize they need business interruption coverage until it's too late. The BOP includes it automatically.
Customizable Add-Ons
Start with the core bundle and add coverages like equipment breakdown, cyber liability, or professional liability as needed.
Is a BOP Right for Your Business?
For most small businesses, the answer is yes. If you have a physical location, own equipment or inventory, and interact with customers or clients, a BOP provides essential protection at a competitive price.
The key question isn't whether you need this coverage—you almost certainly do. The question is whether a bundled BOP or separate policies makes more sense for your specific situation.
Factors like your industry, property values, liability exposure, and desired limits all affect this decision. That's why we recommend getting quotes both ways and comparing them side by side.
Get Your BOP Quote
See how much you can save with bundled coverage. We'll help you compare a BOP to separate policies and find the best fit for your business.
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Ryan Parrack Insurance
Serving Elkins, Buckhannon & Northern/Central WV
Elkins, WV