Business Owner’s Policy (BOP Insurance)
General Liability plus Commercial Property insurance in one convenient package
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What is Business Owner’s Policy insurance?
What can a BOP insurance policy cover?
- Theft of business gear from your business location
- Property and inventory damage
- Business income interruption
- Medical fees for non-employee injuries
- Legal fees and defense costs
- Equipment failure (optional add-on)
How much does BOP insurance cost?
Starts at just $25/month†
Buy online in about 10 minutes, and cancel anytime.
Who needs a Business Owner’s Policy most?
- Stores, shops and offices that own or lease
- Businesses visited by customers or vendors
- Retailers who stock products or inventory
- Workers on other people’s property
- Businesses who rely on special equipment
- Any business exposed to extreme weather
BOP insurance can help protect from both liability and common business accidents, including
Theft of business gear
You turn your back and someone steals your business laptop from your shop. You’ll need a replacement.**
Property and inventory damage
A pipe bursts and ruins furniture, flooring and all inventory in your stockroom. You’ll need help to cover the costs.
Business income interruption
A storm damages your business and you need to close for weeks. You’ll need help with bills and other expenses while you recover.
Medical fees for non-employee injuries
Someone gets hurt in a slip-and-fall on your premises. You’ll need help to cover the medical bills.
Legal fees and defense costs
Your business is sued for an accident and you need to cover the costs of legal defense — even if you did nothing wrong.
Equipment failure
Your HVAC unit suffers a sudden mechanical breakdown putting your inventory at risk. BOP insurance coverage with add-ons could help cover the costs.
How much is a Business Owner’s Insurance policy?
BOP insurance coverage can cost as little as $25/month† for some low-risk businesses.
Several factors influence the price you’ll pay for insurance, including:
- Your industry and your business operations.
- The size and payroll of your business.
- The state or city where you do business.
- Your business needs and how much coverage you choose.
- Your history of past insurance claims.
How to get a BOP insurance quote
Start a free online quote
In about 10 minutes you’ll see the exact price you’ll pay for Business Owner’s Policy insurance online.
Customize your coverage
Adjust your policy limits and deductibles to pick the right coverage at the right price.
Buy 100% online
Your coverage is effective immediately after payment. And your certificate of insurance is ready at no extra cost.
Who needs Business Owner’s Policy insurance most?
Construction and contractors
If you work in construction or as a contractor, you are often required to have liability insurance for licensing or to meet some contractual requirements. And your tools, gear and equipment are your livelihood that need protection as well. A Business Owner’s Policy could help cover costs for both. If your workspace, workshop or storage facility and the contents inside are damaged by things like a fire, theft, vandalism or harsh weather event, you could be covered. And you can add optional tools and equipment insurance to help with the cost of stolen or damaged tools when you’re working on-site. In addition, if you’re forced to temporarily close down after a covered event, BOP coverage could help with business income replacement while you recover.
Landlords and lessors
BOP insurance (also called a Business Owner’s Policy) combines business property insurance with general liability insurance for landlords. If you lease out property you own to a business, you could be covered if there are damages to your rental property after an event like a broken water pipe, theft or fire. You may also be able to receive lost rental income while your property is repaired after a covered loss. Your business insurance could also help protect you from the costs of an injury to a tenant or visitor in a common area, or if there’s damage to tenant or visitor property or personal belongings.
Retail shops and online stores
Business owner’s insurance could help protect physical business essentials, such as store furniture, built-in shelving or displays, flooring, paint, doors, windows and signage you need to run your retail or online business, as well as products and inventory. The general liability coverage included in a BOP could provide for customer injury costs in your store, and product liability insurance, when added to your policy, could mean help if the products you make or sell cause customer injury or damages. A BOP could also help replace lost income if you suddenly have to close your business for repairs after a covered event like a fire, burglary, or storm damage.
Offices and professional services
Though your work may be at a desk and computer, if you see clients, you’re vulnerable to injury claims and property damage risks. Professionals such as accountants, real estate agents, consultants, architects and engineers — even if you work alone — may need liability coverage. The building protection of a BOP could also help protect your business equipment, including your computers, office furniture, and furnishings like flooring and lighting. If your business property is damaged due to a covered event, like a burst water pipe or a rock through your window, business owner’s insurance could help cover the costs. And cyber liability insurance, an optional add-on, could help cover the costs of data leaks, phishing scams, wire fraud, ransomware attacks and more.
Restaurants, caterers, coffee shops and food vendors
Restaurants and other food service businesses could get help with medical payments and lawsuit expenses if, say, there’s a customer slip-and-fall at your business. A BOP insurance policy could also help cover damage to kitchen gear like stovetops, freezers, refrigerators and mixers, pantry staples and freezer stock, as well as front-of-house furnishings like tables, chairs, POS systems, laptops and flooring. Whether it’s a burst water pipe in the storage room, a fire in the kitchen or a break-in overnight, BOP insurance could help you recover and reopen quickly and assist with lost business income. Liquor liability insurance, an optional add-on, could also help protect your business from some liability if you serve alcohol.
Janitorial and cleaning businesses
Commercial cleaners and house cleaners could be protected from financial losses if they accidentally break or damage someone else’s property while on the job, or if a non-employee slips on a wet floor, suffers an injury, and asks your business to pay for their medical costs. BOP insurance coverage could also help your business cover costs surrounding scratched floors or broken vases.
Business Owner’s Policy insurance FAQ
Find answers to some of the most frequently asked questions about BOP insurance.
Is BOP insurance legally required?
BOP insurance coverage can be mandatory to unlock some business opportunities. Commercial landlords may require you to have business insurance for a commercial rental property when you sign a lease. Financial lenders could also require you to have coverage to buy business property with a bank loan. And some clients may want to see your proof of insurance before they’ll let you bid on a project, sign a contract or begin work.
What could happen if a business does not have BOP insurance?
If a business owner does not carry a Business Owner’s Policy when it's required, there are many risks involved. For one, the business could be financially liable for the costs of property damage, medical bills, legal fees and court costs themselves. They could also open themselves up to contract violations that could result in loss of work or legal action. This type of exposure could mean closures for many small businesses who are often tight on cash flow.
Even if a BOP insurance policy isn’t required, it’s a good idea for businesses that have a physical space to protect and who frequently interact with the public. It can be a layer of precaution that lets business owners focus on their core business rather than accidents, injuries, or damages.
What’s typically not covered by a Business Owner's Policy?
BOP insurance offers small business owners a lot of protection, but it’s just one type of business insurance out of many. Here’s what Business Owner’s Policy insurance probably won’t cover:
Injury costs for you or your employees
If a non-employee gets hurt at your place of business or job site, your BOP insurance policy could help cover the medical costs. But to cover your employees or yourself in the event of a work-related illness or injury, you’ll need workers’ compensation insurance. Note that workers’ comp is required coverage for businesses that have employees in most states.
Legal costs for professional mistakes
If you’re a professional who sells your services — such as a consultant, financial advisor, engineer or real estate professional — professional liability insurance (also called errors and omissions insurance, or E&O) could help. This coverage could help cover costs if a professional error, miscalculation or missed deadline costs a client money.
Cars, trucks, trailers, or other vehicles you use for business driving
Commercial auto insurance could help protect your business from the unexpected cost of vehicle repair, replacement or rental if you or your employees are involved in a covered accident or incident.
Computer system hacks and cyber attacks
Cyber protection coverage could help cover financial losses to your business from cyber attacks, phishing schemes, data breaches or ransomware. At ERGO NEXT Insurance, cyber liability insurance is an optional add-on to your BOP insurance, general liability coverage or professional liability insurance.
Do I need a BOP if I already have Commercial Property insurance?
Commercial property coverage can provide protection over goods, gear, inventory and structures that you own for your business, and is included in a BOP.
A Business Owner's Policy can cover all of this, plus general liability risks such as damage to other people’s property, injuries to customers or vendors and some legal fees.
If you know your business needs both commercial property insurance coverage and general liability, you can typically save money by combining them in a BOP policy.
Compare Business Owner's Policy coverage with commercial property insurance.
Do I need a BOP if I already have General Liability insurance?
The liability coverage you get through a BOP is the same protection you get from a general liability insurance policy.
When you buy Business Owner's Policy insurance instead of general liability coverage, you get the added benefit of commercial property insurance. This extended protection could help cover equipment breakdowns, inventory and the physical building you use for your business.
Can BOP insurance tailor coverage to a specific industry?
A Business Owner’s Policy can be customized to the specific needs of your business. It can easily be combined with other relevant coverage and protection for your industry.
For example, if you own a restaurant, a food spoilage endorsement could help if a power outage causes your walk-in freezer to fail and ruin your inventory.
Can home-based businesses get a Business Owner's Policy?
Yes, if you run a home-based business, you can have all the same protections of a BOP insurance policy of any other small business.
If you run your business from your home, your homeowners insurance probably won’t protect your business. BOP insurance coverage could help protect your business equipment, product inventory, furniture and fixtures, business income and liability costs if your business faces a legal claim. It could help protect you if there’s a fire, theft, power outage, equipment breakdown or something else that goes wrong.
Does BOP insurance cover theft?
Your BOP insurance coverage could include protection against theft of your business property at your business location.
If you’re in construction or cleaning and you often carry gear between job sites, tool and equipment insurance could help if someone steals your tools (which is not standard in BOP policies).
Can I add an additional insured to my Business Owner’s Policy?
Yes. ERGO NEXT customers can easily add an additional insured and share their certificate of insurance at no extra cost through their customer account.
When will I get my policy and proof of insurance?
It takes about 10 minutes to get a quote, buy coverage and get access to policy documents and your certificate of insurance (COI).
You can access your documents and COI 24/7 online or in the NEXT app for iPhone or Android.
How do I make a BOP insurance claim?
You can file a claim anytime online or in the ERGO NEXT app.
You’ll be asked to share the details of what happened and to provide relevant photos and documentation. We strive to make claims decisions as quickly as possible so that you can get back to work.
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