Business Owner’s Policy (BOP) bundles the coverages most small businesses need — general liability plus commercial property, and usually business interruption — into one convenient package that’s often cheaper than buying them separately. It’s a great fit for many small and mid-sized businesses, but it isn’t one-size-fits-all.
What a BOP actually includes
- General Liability — covers third-party bodily injury and property damage your business causes.
- Commercial Property — covers your building, equipment, inventory, and furnishings against fire, theft, and more.
- Business Interruption — helps replace lost income if a covered event forces you to pause operations.
Bundling these into a BOP is convenient and typically costs less than buying each policy on its own — which is why it’s one of the most popular products for small businesses.
Who a BOP is a good fit for
BOPs are designed for small to mid-sized businesses with relatively standard risk — think retail shops, offices, service providers, and many contractors. If you have a physical location, equipment, and customers coming and going, a BOP covers a lot of ground in one policy.
What a BOP does NOT cover
A BOP is a foundation, not everything. It typically does not include:
- Workers’ compensation (required separately if you have employees)
- Commercial auto (for business vehicles)
- Professional liability / E&O (for advice or professional services)
- Tools/equipment away from your premises (inland marine)
Most businesses build a BOP as their core, then add the specific coverages their operation needs.
BOP vs. buying policies separately
For a standard small business, a BOP is usually simpler and cheaper. For businesses with unusual or higher risk, a custom package of separate policies may fit better. The right answer depends on your industry, size, and exposures — which is exactly what an independent agent helps you sort out.
Frequently asked questions
What does a BOP cover?
Typically general liability, commercial property, and business interruption bundled into one policy – often at a lower cost than buying them separately.
Does a BOP include workers’ comp?
No – workers’ compensation is separate and is required in Utah if you have employees.
Is a BOP cheaper than separate policies?
Usually, for standard small businesses. Bundling is often more affordable than buying each coverage individually.
Is a BOP enough on its own?
It’s a strong foundation, but most businesses add coverages like workers’ comp, commercial auto, or professional liability on top.
Find out if a BOP is right for you
Want the simplest, most cost-effective way to protect your business? Call (801) 676-7101 or request a quote. We’ll build the right business insurance package for your situation.
Wasatch Preferred — 9133 S Monroe Plaza Way, Suite B, Sandy, UT 84070 — (801) 676-7101
This article is for general educational purposes only and is not insurance or legal advice. Coverage varies by policy and carrier — confirm details with a licensed insurance professional.