If you’re looking for a cost-effective way to insure your business for a variety of scenarios, consider a Business Owner Policy (BOP). This hybrid policy type is meant to combine the benefits of commonly needed business insurance coverage without purchasing them separately.

In this Ultimate Guide, we’ll describe what a BOP is, what it covers and doesn’t cover, situations where BOP insurance is useful, how much a BOP costs, along with recommendations on where to look for competitively priced insurance.

What is Business Owner's Policy Insurance?

A Business Owner's Policy is a hybrid of General Liability Insurance and Commercial Property Insurance. A BOP is a cost-effective way for small- or medium-sized businesses to carry these common liability insurance types, along with their benefits, at a less expensive rate than purchasing them individually.

What Does a Business Owner's Policy Cover?

A BOP protects a business from certain liabilities and property damage like repairing or replacing damaged, destroyed, or stolen business property. It also helps cover the cost of lawsuits stemming from bodily injury, property damage, or copyright infringement.

Depending on the insurance provider, a BOP can be augmented to cover other business-related liability expenses including interruptions to business operations, damage to portable equipment, cyber liability, and others.

What Doesn't a Business Owner's Policy Cover?

A BOP will not cover any intentional destruction of property, damage to vehicles (yours or others), data breaches, or any other liability unless purchased as additional insurance policies. You’ll need Commercial Auto Insurance, Cyber Liability Insurance, or Workers’ Comp if you have employees to cover those liabilities.

What's a Situation I Would a Business Owner's Policy Cover?

If someone sues your business for an injury suffered on your property, a BOP would cover the damages (up to the policy limit).

If you are a freelancer and somebody steals or damages your business equipment, a BOP would cover the replacement cost.

If a weather event damages your office building, a BOP would cover the cost to repair it. If you’re sued for advertising injury, e.g. copyright infringement, a BOP covers that too.

How Much Does a Business Owner's Policy Cost?

The cost of a BOP will fluctuate greatly, due to the levels of customization allowed in the policy. The amount of coverage you select, the value of your property, your business location, business industry, number of employees, and the add-ons you choose will all affect the final price.

A basic BOP will cost between $30-$50 per month,  however, if you choose add-on liability insurance coverage, expect your cost to increase.

Who Needs a Business Owner's Policy?

Every small business could benefit from a Business Owner’s Policy by offering the best option for liability coverage at an affordable price. Your small business may pursue other types of coverage to augment what your BOP covers, so ask your insurance broker if they can bundle additional riders (add-ons) into your policy.

Where to Find Business Owner's Policy Insurance?

BOP insurance is available from numerous insurance providers — brick and mortar as well as online. We've partnered with Next Insurance and their rates start at just $25 per month. Use our partner link to get a free quote.

Learn more about 12 other types of insurance. Take a look at our Ultimate Guide to Selecting Business Insurance.

How Else Can Skip Help? Whether you need assistance navigating funding for your small business — like SBA loans, grants, or other financing options, or guidance with government-related services — like TSA PreCheck or DMV appointments, we’re ready to help. Become a member and skip the red tape.