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Business Owners Policy
Embroker's Business Owners Policy (BOP) includes market-leading commercial property, general liability, and business interruption insurance — multiple coverages you can get in minutes, not days.
Why it's essential
- Safeguard your business from financial loss
- Protect your hard-earned reputation
- Maintain business continuity in case of legal challenges
Why choose Embroker
- Deep industry expertise
- Tailored insurance solutions
- Efficient digital platform
- Exceptional customer service
What is a Business Owners Policy?
A Business Owners Policy (BOP) is a package of insurance policies that the majority of business owners need to have — which is why insurance carriers bundle these coverages and sell them as one product.
More often than not, a BOP is sold to small and medium-sized businesses, since large corporations tend to have more complex risks that require customized policies.
In a typical BOP, businesses buy the following policies as one bundle or insurance package:
A BOP will cover the liability losses that a general liability policy will cover, but it will also cover property losses and business interruption costs.
A commercial general liability policy typically covers third-party property damage, bodily injury, and advertising injury, along with defense costs if you are being sued for a covered loss.
A BOP covers all this as well since commercial general liability is an integral part of the policy package, but it also covers your business property. That means that it can cover everything a commercial property policy covers, including property damage, loss and restoration of paperwork and records, equipment breakdown, and more.
A BOP can be customized to fit your business needs, which means that additional coverages can be added to it, even commercial auto insurance. General liability covers what it covers and you can’t add different types of coverages to this policy like you can to a BOP.
However, sometimes it is better to buy your general liability and property insurance as separate policies if you need them to be very robust and specific since the coverage you get with a BOP can sometimes be limited.
A BOP is a perfect solution for a small business with a low-risk profile and basic coverage needs.
What's covered
- Commercial property: Protection if your business property is damaged, or if equipment/office contents are damaged or stolen.
- General liability: Covers claims related to third-party bodily injury or third-party property damage.
- Business interruption: Covers loss of income if your business is forced to close down for a period of time.
What's not included
- Cyberattacks and breaches
- Professional liabilities, such as errors and omissions
- Employment-related claims
- Criminal activity or illegal acts
Your BOP insurance partner
Embroker simplifies the process of securing a Business Owners Policy with quick quotes, tailored policies, and competitive pricing to protect your business.
Speed and efficiency
Quickly obtain quotes and purchase coverage through our digital platform.
Custom packaging options
Embroker can package a BOP with other essential coverages, such as cyber liability.
Expert guidance
Benefit from our team's in-depth knowledge of common industry risks and insurance needs.
Business Owners Policy illustrated
Explore real world scenarios of how this coverage has supported businesses
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Frequently Asked Questions (FAQ)
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Embroker has published a bunch of great resources to help you on your insurance buying journey. Check out the Embroker Resource Hub for articles on coverage, guidance on insurance costs, and what you’ll need to get a quote.
You can also connect with a broker at any time to get help identifying your coverage gaps.
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There are policies that most small businesses need that simply cannot be attached to a BOP in any way. Workers compensation insurance and commercial auto insurance are good examples of popular coverage options that usually need to be purchased alongside a BOP.
However, BOPs are still fairly customizable, meaning that there are plenty of endorsements that can be attached to your BOP in order to provide you with more comprehensive coverage, including policies such as professional liability, EPLI, and common commercial property endorsements such as spoiled merchandise and mechanical breakdown coverage.
Naturally, the more endorsements you add to your BOP and the broader the scope of your coverage becomes, the more expensive your BOP will be.
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A Business Owners Policy is a policy package that was created with small businesses in mind. It was designed to cover many of the business risks that a majority of small businesses share, regardless of industry.
Large companies with more complex insurance needs usually don’t qualify for a BOP, meaning that the coverage they need can’t be provided by a Business Owners Policy. These large businesses would most likely be better off purchasing a variety of individual insurance policies that are all tailored to cover their specific needs based on their more complex risk profile.
If you fit into the following profile, a Business Owners Policy could probably be the right solution for covering your basic business insurance needs:
- You have less than 100 employees
- You make less than $10 million in annual sales
- You have a physical location (could be your home) where most of your business is conducted
If these statements describe your business, you can get a risk-free, instant business owners policy quote with Embroker in just a few minutes.
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A common misconception is that big companies need insurance more than small businesses. That simply isn’t true. While large companies might have more complex risks, one unforeseen event or misstep can be financially crippling to a small business if it is not insured.
A large business will probably have the money to pay for a lawsuit without insurance or repair their office if a hurricane destroys it. But with less cash flow, a small business most likely wouldn’t have the funds to cover the additional costs from such events. Insurance is there to provide financial support and relief for such unexpected circumstances.
Business Owners Policy Insurance can offer business owners peace of mind. This policy package makes it easy for business owners to maintain all of the most common insurance policies they need without having to manage several policies or sign contracts with different insurers. When you buy a BOP you have one policy that you’ve purchased from one insurer, making any eventual claims much simpler to handle.
The Advantages of Having a BOP
The most obvious advantage of having a BOP is that it casts a wide net of protection and provides you with a broad range of coverage while having to only purchase one bundled policy.
The other most obvious benefit is the fact that you end up saving money. Every cent counts when you’re running a small business, which is why BOPs are an attractive option for smaller companies that need basic insurance coverage and would like to spend as little as possible on it.
Another great thing about a BOP is that it can be modified and customized to fit your business’s specific needs. You buy what you need and you don’t buy what you don’t need. It’s very easy to add various endorsements to your BOP that will cover common risks such as equipment breakdown or personal and advertising injury.
Finally, another key advantage of a BOP is that it’s an incredibly popular insurance option that is offered by all the top insurers and even smaller insurance carriers, meaning that you can really shop around to find the best BOP for your business in terms of coverage and cost.
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There are several general factors that will determine the cost of your BOP, including the following:
- Size: Larger companies with more employees typically pay higher premiums.
- Industry and risk: The greater the workplace-related risks associated with your industry, the more you’ll pay. That means that a restaurant will almost always pay more for a BOP than a software company, for example.
- Location: If your business is located in a region that is known for flooding or earthquakes, then your BOP will be more expensive compared to what a business located in a lower-risk geographic location would have to pay.
- Value or property: The greater the value of your property and the harder and more expensive it is to replace your business contents and equipment, the higher your BOP premium will be.
- Claims history: Previous claims can increase your premium.
- Policy limits and deductible: Higher coverage limits generally result in higher premiums, while a higher deductible can lower your premium.
Just like every other business insurance policy or package of policies that your company can purchase, the price of a BOP depends greatly on a multitude of factors that are taken into consideration during the underwriting process. And naturally, the more optional coverages you add to your BOP, the more it will cost.
However, the average price that small businesses with a lower risk profile can expect to pay for a BOP is about $1,000 per year. Some small companies can pay as little as $500 while others may pay up to $3,500 for a year of BOP coverage, depending on their risk profiles.
Most insurers will set the minimum premium for a BOP purchased by a low-risk business at about $250-$500.
Business Owners Policy insights
Stay informed about the latest trends and developments in BOP insurance through our curated resources.
A Guide to Property Damage Assessment and Recovery for Business Owners
For those that have experienced property damage recently, we’ve put together this quick review of the path to property damage recovery and preparing for the claims process.
How Much Does a Business Owners Policy (BOP) Cost?
Let’s take a look at the factors that go into determining the price of a BOP to help business owners to get a rough idea of what they can expect to pay for this coverage.
Business Owners Policy vs. Commercial Package Policy: Which One Better Suits Your Business’s Insurance Needs?
Business owners policy vs. commercial package policy—what are the main difference between the two and which one of these bundles makes the most sense for your business?