BOP insurance: liability and property protection for your business
A business owners policy (BOP) protects small to medium-sized businesses by combining liability and property coverage into one package. Also known as business owners insurance or BOP insurance, it's a popular choice for companies that want coverage that's easy to manage, such as restaurants, wholesalers, retail stores, and contractors.
Discover more about BOP coverage, cost, and how Progressive Commercial experts can connect you with the right insurance.
Protecting what you've worked hard to build
What is a business owners policy?
A BOP is a convenient way for businesses to get essential coverage in a single policy. The core protections include liability coverage, which helps pay for harm or damage your business causes others, and property coverage, which helps pay for damage to your business property caused by events like fire, theft, or certain weather events.
You can tailor a BOP by adding extra coverages that address risks unique to your business. Watch the video to learn more.
What is included in a business owners policy?
A business owners policy has two primary coverages:
Liability
The liability coverages on a BOP are the same as those on a general liability policy. They help with things like customer injury and property damage, advertising injury, and product-related claims. For example, if a customer slips and falls in your store, your liability coverage could help with medical expenses and legal costs.
Since a BOP doesn't cover your employees, you'll need a separate workers' compensation policy to protect your team.
Property
Property insurance covers commercial buildings and business personal property, such as office furniture, tools, and inventory. It can also pay for things like debris removal, loss of income, accounts receivable claims, and pollution cleanup.
If you need protection that goes beyond the basics, you might be able to add coverage for specific risks, like equipment breakdown, spoilage, and certain natural disasters.
For example, damage from earthquakes is typically excluded from a BOP. If you live in an area where they're common, you might consider adding an endorsement to your policy to increase coverage. Ask about these options when getting your quote.
Who needs a business owners policy?
Small to medium-sized businesses that own or rent workspace or other types of business property should consider a BOP, which includes liability and commercial property insurance. Together, this combination protects your business from accidents, lawsuits, theft, and more.
Contractors, wholesalers, offices, restaurants, and retailers are some examples of businesses that could benefit from a BOP.
What does a business owners policy cover?
A business owners policy covers liability and commercial property claims. Liability coverage includes customer injury, damage to other people's property, and advertising injury. Commercial property insurance protects your buildings, tools, equipment, and more.
A BOP also provides business interruption coverage to help you recover from financial losses that result from unexpected disruptions to your business operations. This coverage is also called business income insurance.
What is contingent business interruption coverage?
Contingent business interruption (CBI) extends your business income insurance to disruptions caused by others. If a supplier or other business you rely on has a covered loss that interrupts your operations, CBI can help replace your lost income. It can apply to events like fires or storm damage.
What are common scenarios where a BOP can protect your business?
BOPs cover common situations that businesses face, including:
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Slip and falls:
Covers medical expenses and legal fees related to slip and fall accidents for non-employees. Learn more about slip and fall insurance.
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Extreme weather and other environmental hazards:
Pays to repair and rebuild your commercial buildings and business property if fire, wind, or certain other hazards cause damage.
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Spoiled ingredients:
Protects you if food and other perishable goods spoil due to equipment breakdown, storm-related power outages, or other covered events.
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Data breaches:
A cyber endorsement on your BOP can pay for costs related to compromised customer data, such as restoring computer systems or paying legal fees.
What's the difference between a business owners policy and general liability coverage?
A BOP combines liability and property insurance into one easy-to-manage policy. General liability protects your business from third-party liability claims, including bodily injury, property damage, and personal injury. There's no need for an additional general liability insurance policy if you have a BOP.
Understand the difference between BOP and general liability insurance.
What is business personal property?
Business personal property is moveable property that your business owns and uses, such as furniture, machinery, inventory, and electronics. It's covered by a BOP.
Does a business owners policy cover rented business property?
Yes, BOPs typically provide coverage for leased or rented buildings. You can increase this coverage to include a variety of events. Read more about business renters insurance.
Is it possible to add coverage to a business owners policy?
Yes. You can add coverage to your BOP with amendments to your insurance policy called endorsements. These additions customize your policy to better fit your business's specific risks. Optional coverages include cyber liability, food contamination, equipment breakdown, and tools and equipment
Can a business owners policy help pay for damage from natural disasters?
In many cases, yes. Commercial property coverage through a BOP typically covers many natural disasters, including hail, lightning, wind, hurricanes, and tornadoes. However, a BOP often excludes other disasters, like earthquakes and floods.
Your coverage can vary based on specific policy terms, endorsements, or other modifications. Learn more about how property coverage on a BOP can protect you from various business hazards.
Can Progressive Commercial help me get a business owners policy in my state?
In most cases, yes. Progressive Commercial can help you get business insurance in all states except Hawaii, and we offer BOPs in most states. Browse by state to see what's available to you.
How do I file a Progressive Commercial BOP claim?
Before you file a BOP claim, you should confirm who underwrites your insurance policy. This information is in your policy documents.
Customers with a BOP underwritten by Progressive Commercial can submit a claim by calling 1-855-737-4257. If another carrier in our network underwrites your BOP insurance, contact them directly using the number listed on your policy.
