Business Owners Policy (BOP)
Multiple Business Coverages in One Policy
Small and midsize businesses can face many different risks — from a customer getting injured at the business to a fire damaging equipment, inventory or the building.
For eligible businesses, a Business Owners Policy, commonly called a BOP, can combine several important commercial insurance coverages into one policy.
John Scott Insurance helps business owners determine whether a BOP is appropriate for their operation and identify additional coverage that may be needed beyond the policy.
What Is a Business Owners Policy?
A Business Owners Policy is a commercial insurance policy designed for certain eligible businesses.
Rather than purchasing several basic coverages separately, a BOP generally combines key protections into one policy.
A typical BOP may include:
✓ General Liability Insurance
✓ Commercial Property Insurance
✓ Business Income coverage
Additional coverage may be available through endorsements depending on the business and insurance carrier.
Eligibility, coverage and policy options vary.
What Does a Business Owners Policy Cover?
General Liability
General Liability Insurance can help address certain claims involving third-party bodily injury, property damage and other covered liability exposures.
For example, a customer could slip and fall at your business or your operations could accidentally damage someone else’s property.
LINK: General Liability InsuranceCommercial Property
Commercial Property Insurance can help protect eligible physical business assets against certain covered causes of loss.
Depending on the policy, this may include:
- Buildings
- Furniture
- Computers
- Inventory
- Supplies
- Equipment
- Other eligible business property
Business Income
A covered property loss can do more than damage your building or equipment.
It may temporarily prevent your business from operating.
Business Income coverage may help replace certain lost income and continuing expenses when operations are suspended because of a covered loss, subject to the terms, conditions and limits of the policy.
What’s the Difference Between a BOP and General Liability Insurance?
This is an important question, and I’d like this section to be prominent on the page.
General Liability Insurance
General Liability Insurance primarily addresses certain liability claims involving third parties.
Business Owners Policy
A Business Owners Policy generally combines General Liability with Commercial Property and other coverage, such as Business Income, for eligible businesses.
So:
General Liability = Liability Coverage
BOP = A Package of Business Coverages
A business that owns equipment, inventory, furniture or other physical property may need protection beyond General Liability alone.
Does Every Business Qualify for a BOP?
No.
Business Owners Policies are generally designed for certain small and midsize businesses that meet an insurance carrier’s eligibility requirements.
Some businesses with more complex or higher-risk operations may need separate commercial policies rather than a BOP.
John Scott Insurance can help determine which approach is appropriate based on the individual business.
Carriers may consider factors such as:
What Types of Businesses May Be Eligible for a BOP?
Depending on carrier guidelines, BOPs may be available for businesses such as:
Eligibility varies significantly by insurance carrier and business operation.
What Isn’t Automatically Included in a BOP?
A Business Owners Policy can combine several important coverages, but it doesn’t automatically address every risk a business may face.
Depending on the business, additional insurance may be needed.
Workers’ Compensation
Employee workplace injuries are generally addressed through Workers’ Compensation Insurance.
Commercial Auto
Business-owned vehicles generally require Commercial Auto Insurance.
Equipment That Travels
Tools and equipment that regularly leave the business location may require Equipment or Inland Marine coverage.
Commercial Umbrella / Excess Liability
Businesses needing additional liability limits may want to consider Commercial Umbrella or Excess Liability coverage.
Cyber Insurance
Cyber incidents, data breaches and certain technology-related exposures may require Cyber Insurance.
Professional Liability
Businesses that provide professional services or advice may need Professional Liability or Errors & Omissions coverage.
Please link these to the appropriate John Scott pages as we build them.
Can a Business Owners Policy Be Customized?
Depending on the insurance carrier and business, additional endorsements or coverage options may be available.
These might address exposures involving:
The goal shouldn’t be simply to buy a BOP.
The goal should be to understand what the BOP covers — and identify important exposures that may exist outside of it.
breakdown
related risks
specific needs
How Much Does a Business Owners Policy Cost?
There isn’t one standard price for a BOP.
Insurance companies may consider factors such as:
Two businesses that appear similar may have different premiums because their property, operations and exposures are different.
BOP vs. Separate Commercial Policies
Some businesses can be appropriately insured using a Business Owners Policy.
Others may need separate policies for General Liability, Commercial Property and other exposures.
The right structure depends on factors such as:
John Scott Insurance can help business owners evaluate whether a BOP or a different commercial insurance structure better fits their operation.
What Happens as My Business Grows?
A BOP that works for a business today may not always be the right solution as the company grows.
Changes such as these can affect insurance needs:
This is one reason regular business insurance reviews are important.
Your insurance program should evolve as your business changes.
Is a BOP Right for Contractors?
Is a BOP Right for Contractors?
Some contractors may qualify for certain packaged commercial policies, but contractor operations can also create specialized exposures involving job sites, tools, vehicles, employees, subcontractors and completed work.
John Scott Insurance operates Contractors Insurance Agency, a specialized division focused specifically on contractors and construction-related businesses.
Is a BOP Right for a Tree Service Business?
Tree trimming and removal businesses can have specialized exposures involving employees working at height, heavy equipment, commercial vehicles, chainsaws, chippers, stump grinders and potential damage to surrounding property.
These operations may require a more specialized commercial insurance program.
John Scott Insurance operates Tree Trimmers Insurance Agency, a specialized division focused specifically on tree service professionals.
A BOP as Part of Your Business Insurance Program
A Business Owners Policy can provide a strong insurance foundation for an eligible business.
However, it’s still important to look at the entire operation.
Additional coverage may include:
✓ Workers’ Compensation
✓ Commercial Auto
✓ Equipment / Inland Marine
✓ Commercial Umbrella
✓ Cyber Insurance
✓ Professional Liability
✓ Employment Practices Liability
✓ Other specialized coverage
The John Scott RiskMAP™ Approach
Please incorporate the existing John Scott RiskMAP™ Analysis messaging into this page.
Rather than simply asking:
“Can we put this business on a BOP?”
We want to understand:
This helps determine whether a BOP fits the business and what additional coverage should be considered.
Please use existing approved John Scott RiskMAP™ language and branding where appropriate.
Frequently Asked Questions About Business Owners Policies
What does BOP stand for in insurance?
BOP stands for Business Owners Policy. It generally combines several common business insurance coverages into one policy for eligible businesses.
What does a Business Owners Policy cover?
A BOP commonly includes General Liability, Commercial Property and Business Income coverage. Specific coverage varies by policy and carrier.
Is a BOP the same as General Liability Insurance?
No. General Liability primarily addresses certain third-party liability exposures. A BOP generally packages General Liability with Commercial Property and other coverage.
Does a BOP include Workers’ Compensation?
Workers’ Compensation is generally separate from a Business Owners Policy.
Does a BOP cover business vehicles?
Business-owned vehicles generally require Commercial Auto Insurance rather than relying on a BOP.
Does a BOP cover my building?
A BOP may include Commercial Property coverage for an eligible business-owned building, subject to the policy’s terms, limits and eligibility requirements.
Can I get a BOP if I rent my business location?
Potentially. Businesses that lease their locations may still need coverage for furniture, equipment, inventory, tenant improvements and other business-owned property.
Does a BOP include Business Income Insurance?
Business Income coverage is commonly included in a BOP, although the amount, terms and limitations vary by policy.
Is a BOP cheaper than buying policies separately?
A BOP can be a convenient way for eligible businesses to package certain coverages, but pricing depends on the individual business, carrier and coverage selected. Cost shouldn’t be the only factor when determining the appropriate insurance structure.
How do I know if my business qualifies for a BOP?
Eligibility varies by insurance carrier and may depend on the business’s industry, size, revenue, property, location, operations and other underwriting factors.
Business Owners Policies Across the Midwest
John Scott Insurance works with businesses throughout:
Eligibility and insurance requirements can vary depending on the business and where it operates.
Let’s Talk About Your Business
A Business Owners Policy can simplify insurance for certain businesses — but simplicity shouldn’t mean overlooking important exposures.
John Scott Insurance can help you evaluate your business, property, liability exposures and operations to determine whether a BOP fits your needs and what additional coverage should be considered.