Get the coverage you need in one bundled policy. A BOP combines general liability, commercial property, and business income insurance — often at a lower cost than buying each separately. Buffer shops multiple carriers to find the right BOP for your business.
Get a Free BOP Quote →A Business Owner's Policy (BOP) is a bundled insurance package that combines the three most essential commercial coverages into a single, streamlined policy: general liability insurance, commercial property insurance, and business income (business interruption) coverage.
BOPs are designed specifically for small and mid-size businesses. By bundling these coverages, insurers offer them at a significant discount compared to purchasing each policy individually. A BOP is the most popular insurance product for Main Street businesses — from retail shops and restaurants to professional offices and service companies. It is the easiest, most cost-effective way to get comprehensive protection for your business in a single policy.
A BOP delivers broad protection across five key coverage areas. Each addresses a different category of risk that small businesses face every day.
Covers third-party bodily injury, property damage, personal and advertising injury, and medical payments. If a customer is injured on your premises, or your operations damage someone else's property, the liability portion of your BOP responds.
Covers your building (if owned), tenant improvements, business equipment, furniture, inventory, and supplies against fire, theft, vandalism, windstorm, and other covered perils. Protects the physical assets your business depends on every day.
Replaces lost revenue and covers ongoing fixed expenses (rent, payroll, utilities) when a covered event forces your business to temporarily close. Keeps your business financially afloat while you recover and rebuild.
Many BOPs include or offer equipment breakdown coverage, which pays for the repair or replacement of mechanical, electrical, and computer equipment that fails due to internal malfunction — not just external damage.
Pays for the additional costs of operating your business from a temporary location while your primary premises are being repaired. Covers rent, equipment rental, moving costs, and other expenses above your normal operating costs.
A BOP is broad, but it does not cover every business risk. These common exclusions require separate policies that Buffer can help you find and bundle.
Employee injuries on the job are not covered by a BOP. Workers' comp is a separate, legally required policy in most states that covers medical costs, lost wages, and rehabilitation for injured employees.
Vehicle-related liability and physical damage are excluded from BOPs. If your business owns, leases, or uses vehicles, you need a separate commercial auto policy.
Claims arising from professional mistakes, negligence, or failure to deliver services are not covered by a BOP. You need professional liability (E&O) insurance for these claims.
Standard BOPs exclude flood and earthquake damage. If your business is in a flood zone or seismic area, you need separate flood insurance (through NFIP or private carriers) and earthquake coverage.
Claims from employees alleging discrimination, harassment, wrongful termination, or retaliation are not covered by a BOP. Employment Practices Liability Insurance (EPLI) is needed for these risks.
A BOP is the ideal insurance solution for small to mid-size businesses with a physical location and tangible assets to protect. Here are the businesses that benefit most.
Retailers need liability coverage for customer injuries, property coverage for inventory and fixtures, and business income protection if a covered event forces a temporary closure.
Law firms, accounting offices, marketing agencies, and other professional service businesses need protection for their office space, equipment, and the liability exposure that comes with client interactions.
Restaurants face high liability exposure from customer injuries and foodborne illness, plus significant property values in kitchen equipment, furnishings, and inventory. A BOP covers all three.
Salons, repair shops, dry cleaners, and other service businesses operate from a physical location with valuable equipment and regular customer foot traffic — the exact profile a BOP is designed for.
Most commercial leases and business loans require both liability and property coverage. A BOP satisfies both requirements in a single policy, making compliance simple and cost-effective.
BOPs offer flexible limits for each coverage component. Here are the standard levels and the factors that determine your cost.
| Coverage Component | Typical Limits | What It Means |
|---|---|---|
| General Liability | $1M / $2M | Per-occurrence and aggregate limits for bodily injury, property damage, and advertising injury claims. |
| Business Property | $100K – $1,000,000+ | Covers your building (if owned), equipment, inventory, furniture, and tenant improvements up to the policy limit. |
| Business Income | 12 Months / Actual Loss | Replaces lost revenue for up to 12 months while your business is closed for a covered event. |
| Medical Payments | $5,000 – $10,000 | Per-person no-fault medical coverage for minor injuries on your premises. |
| Deductible | $500 – $2,500 | Your out-of-pocket cost per property claim. Higher deductibles lower your premium. Liability claims typically have no deductible. |
A restaurant pays more than an accounting office due to higher liability exposure and property values. Your industry classification is the primary rating factor.
The value of your building, equipment, inventory, and contents directly affects your property premium. Higher values mean higher coverage costs.
Your address affects both property and liability premiums. Areas with higher crime, natural disaster risk, or litigation rates cost more to insure.
Revenue is a key factor in the liability portion of your BOP. Higher revenue indicates more customer interactions and greater liability exposure.
Fire-resistive construction (concrete, steel) costs less to insure than frame construction. Newer buildings with updated wiring and plumbing also qualify for lower rates.
A clean claims record keeps your BOP premium low. Prior property or liability claims increase your rates and may affect eligibility with certain carriers.
Should you bundle your coverage into a BOP or buy each policy separately? Here is how they compare for most small businesses.
| Feature | Business Owner's Policy (BOP) | Standalone Policies |
|---|---|---|
| Coverage Included | General liability, commercial property, and business income bundled into one policy with one renewal date. | Each coverage purchased separately — different policies, different carriers, different renewal dates. |
| Cost | Typically 15–30% less than buying equivalent coverages separately. Bundling provides a significant discount. | Higher total cost when purchasing GL, property, and business income individually from separate carriers. |
| Simplicity | One policy, one premium, one renewal. Easier to manage, fewer coverage gaps, and simpler claims process. | Multiple policies to track, multiple premium payments, and potential for gaps between coverage. |
| Customization | Highly customizable with endorsements. Add cyber, equipment breakdown, HNOA, and more to your BOP. | Maximum flexibility — choose exact limits and coverages from different carriers for each policy. |
| Best For | Small to mid-size businesses that want comprehensive coverage at the best price with minimal administrative hassle. | Larger businesses with complex risks that need highly specialized coverage from different carriers or that exceed BOP eligibility. |
Straightforward answers to the questions we hear most from business owners evaluating their BOP options.
A BOP is the foundation. These policies fill gaps and build a complete risk management program for your business.