Business Owners Policy Coverage Guide

A business owners policy (BOP) is an insurance package that includes liability, property, and other coverages. It typically costs less than buying each coverage separately and can help save on insurance costs. Small businesses that own or lease property could benefit from a BOP and additional protections called endorsements.

Use this coverage guide to learn more about how business owners policies work and what coverages they include.

BOP liability coverages

The liability coverages on a business owners policy are typically identical to those on a general liability policy. They protect against third-party lawsuits and include customer injury, property damage, and more.

Liability protections with a BOP include the following:

Bodily injury and property damage

Personal and advertising injury

Medical payments

Products-completed operations

Damage to premises rented to you

Small business owner reviews her BOP coverages on tablet.

BOP property coverages

The property coverages on a BOP protect your business's physical assets, such as buildings, equipment, and inventory, from fire, theft, third-party property damage, and other incidents.

Property insurance on a business owners policy can cover:


Business personal property

Business interruption

Store employee helps customers at check out counter.

Common BOP endorsements

There are several optional coverages called endorsements that you can add to your business owners policy. These changes provide protection for specific perils.

Some common endorsements are:

Tools and equipment

Equipment breakdown


Miscellaneous professional liability

Employment practices liability


How much coverage do you need?

Your coverage needs and BOP cost vary based on specific features of your business. Typically, insurers recommend coverage amounts based on the following:

  • Business type and profession: Contractors, offices, wholesalers, retail services, and restaurants can all benefit from a business owners policy. However, riskier professions usually need more coverage. Some businesses, like gas stations and bars, might be ineligible for a BOP.
  • Property value: Your building, business personal property, and tools and equipment can determine your coverage needs. For example, if your business relies on expensive tools or equipment, you could choose higher limits on your BOP to cover potential damage or theft.
  • Location: You might need more protection if your business is in a highly populated area or one prone to covered natural disasters, such as hail, lightning, wind, and tornadoes.
  • Employees: More employees can mean more risk, especially regarding liability claims. If you have a large staff, selecting higher coverage amounts can protect your business.

Call or start a quote online to learn which coverage limits are appropriate for your business.

Owner of dry cleaning business hangs customer clothing on conveyer.

BOP in your state

What a BOP doesn't cover

A BOP protects against a variety of risks, but it doesn't cover everything. Some businesses will need other types of insurance for accidents involving:

  • Employee injury: Businesses with employees need workers' compensation insurance to cover medical expenses, rehabilitation costs, and a portion of lost wages when an employee becomes injured or ill on the job.
  • Negligence: Experts who give advice or offer services, such as lawyers and accountants, might need professional liability insurance to protect against claims of negligence or bad advice.
  • Commercial vehicle accidents: If you or your employees get into an accident involving your business vehicles, you'll need commercial auto insurance to cover the damages.

Progressive offers many business insurance coverage options. Learn more about how we can help protect your business.

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Start a quote to select your business owners policy coverages

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