What Is a Business Owners Policy (BOP)?
A Business Owners Policy — commonly called a BOP — is a packaged insurance solution that combines two of the most essential business insurance coverages into a single, cost-effective policy: general liability insurance and commercial property insurance. BOPs are designed for small to medium-sized businesses and are typically less expensive than purchasing the two coverages separately.
GLS Insurance provides Business Owners Policies for businesses across all 17 states in our service territory. As an independent agency, we work with multiple carriers that offer BOP programs — which means we can compare options and find the BOP that best fits your business type, size, and budget rather than being limited to a single carrier’s program.
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Business Owners Policy (BOP)
Risk Factor
As a business owner, you've worked hard to build a solid business. But what happens when the unexpected happens? Are you covered?
Solution
A business owners policy is uniquely designed to protect your most important assets, including your business, its continuation, your employees, and your way of life. Discuss the details of this coverage with your agent and ensure that you're protected.
Errors and Omissions Liability (E&O)
Risk Factor
If you perform services for others, you are at risk of not doing the work correctly (errors) or not doing it at all (omissions). Lawsuits can arise claiming the error or omission harmed your client and caused them a financial loss.
Solution
Errors and omissions liability insurance protects any business that gives advice, makes educated recommendations, designs solutions, or represents the needs of others. Ensure you have this important coverage if you perform services for clients.
Directors and Officers Liability Insurance (D&O)
Risk Factor
Directors and officers (such as board members) are exposed to increased risk factors and are held accountable for acts that claim negligence in the performance of their duties. Any resulting lawsuits are typically expensive to defend, resulting in potentially large settlements.
Solution
Obtain comprehensive coverage to protect senior individuals of your company. Directors and officers liability insurance provides coverage for the legal costs to defend a covered lawsuit and provides the money necessary for any settlement beyond the defense costs.
Commercial Umbrella
Risk Factor
What happens when your business faces a large liability loss that exceeds the basic limit of your standard policy?
Solution
A commercial umbrella policy provides high limits of insurance, typically between $2,000,000 and $10,000,000. Coverage is extended over your general liability insurance, workers' compensation, business auto, as well as directors and officers liability coverage. It provides a great safety net and helps ensure your business is well protected.
General Liability
Risk Factor
Businesses are susceptible to many risks, such as claims due to bodily injury, property damage, personal injury, and more.
Solution
General liability insurance is an absolute necessity for any business. It provides broad coverage when you are deemed responsible and liable, and will also pay to defend any covered lawsuit or action regardless of its merit.
Crime and Fidelity Bond
Risk Factor
What will you do if one of your trusted employees is found guilty of doing something dishonest?
Solution
Crime and fidelity coverage is designed to provide coverage for employee dishonesty, forgery and depository, theft, destruction and disappearance, and more. Discuss the details of this coverage with your agent to learn more.
Environmental Insurance
Risk Factor
Could your business cause damage to the environment? If so, are you covered?
Solution
Environmental insurance provides protection if an environmental catastrophe occurs.
Systems Breakdown
Risk Factor
With technology performing many tasks in today's world, a breakdown can cause a significant financial burden, including the cost to repair the equipment, the interruption of your business, as well as any lost income and extra expenses.
Solution
Comprehensive coverage provides protection against equipment mechanical breakdown. Discuss the details of what's covered with your insurance agent.
Workers' Compensation
Risk Factor
If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place.
Solution
Workers' compensation protects your employees should a job-related injury or sickness occur during the course of employment. This coverage is required by law, so be sure that you understand your obligations.
Business Auto Insurance
Risk Factor
An auto accident can cause bodily injury or property damage to others for which you are responsible, potentially putting your business in financial jeopardy.
Solution
Business auto insurance provides coverage for vehicles owned or leased by a commercial enterprise and provides coverage for bodily injury, property damage, and other coverages, and includes both comprehensive and collision coverage.
Employment Practices Liability Insurance (EPLI)
Risk Factor
On average, it's estimated that three out of five businesses will be sued by their employees. While there is nothing you can do to prevent someone from filing a lawsuit, there is something you can do to limit the costs of defending a legal claim.
Solution
Obtain employment practices liability insurance to protect your business and its directors, officers, and employees from alleged employment-related acts such as wrongful termination, failure to promote, discrimination, and sexual harassment.
Cyber Liability
Risk Factor
The Internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage, and other technologies bring great benefits to large and small businesses alike. But with these benefits also come challenges, including protection of privacy, data, and financial information of your customers.
Solution
Cyber liability coverage covers unauthorized access to electronic data or software within your network. It also provides coverage for spreading a virus, computer theft, extortion, or any unintentional act, mistake, error, or omission made by an employee. This coverage is quickly becoming more and more important as you embrace technology to help run your businesses.
Business Income
Risk Factor
What would you do if a fire impacted the operation of your business? Or what if a pipe leak caused a system outage or extended downtime? These and other events can destroy your ability to serve clients and bring in revenue, which can have a major long-term impact on the viability of your business.
Solution
Business income insurance compensates you for lost income if the business cannot operate as normal due to damage that is covered under your commercial property insurance policy, such as fire or water damage. Business interruption insurance covers the revenue you would have earned, based on your financial records, had the incident not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
Commercial Property
Risk Factor
Your business property is a significant financial investment. What if something happens to it?
Solution
Commercial property insurance can help protect the property your business owns or leases, including things like equipment, inventory, furniture, and fixtures. Whether you own your building or lease your workspace, commercial property insurance can be purchased separately or can be combined with other necessary coverage to protect your business’ physical assets.
What Does a Business Owners Policy Include?
General Liability Coverage
The general liability component of a BOP covers claims of bodily injury and property damage arising from your business operations, products, and services. If a customer is injured at your place of business, if you accidentally damage a client’s property while performing services, or if a third party claims your product caused them harm, general liability pays for the legal defense and any covered damages.
Commercial Property Coverage
The commercial property component covers your building (if owned) and your business personal property — furniture, equipment, computers, inventory, and other business contents — against fire, theft, vandalism, wind, and other covered perils. Most BOP property coverages are written on a replacement cost basis, meaning your covered property is replaced at current values rather than depreciated values.
Additional Coverages Often Included
Many BOP programs include additional coverages beyond the core property and liability components, such as:
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Business Income Insurance — Covers lost revenue and continuing expenses if a covered property loss forces you to temporarily close or reduce operations.
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Accounts Receivable Coverage — Covers money owed to your business that cannot be collected due to the destruction of your records in a covered loss.
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Equipment Breakdown — Some BOP programs include basic equipment breakdown coverage for mechanical failures that damage business property.
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Employee Dishonesty — Some programs include limited crime coverage for theft by employees.
What a BOP Does NOT Cover
Understanding what a BOP excludes is just as important as knowing what it includes. Standard BOP policies do not cover:
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Workers’ Compensation — Must be purchased separately in virtually every state.
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Professional Liability / E&O — Requires a separate professional liability policy.
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Commercial Auto Insurance — Vehicles used for business purposes require a separate commercial auto policy.
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Flood and Earthquake — Require separate endorsements or standalone policies.
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Cyber Liability — Must typically be added as an endorsement or purchased separately.
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Employment Practices Liability — Requires a separate EPLI policy.
Who Qualifies for a Business Owners Policy?
BOP programs are designed for small to medium-sized businesses that meet certain eligibility criteria — typically based on revenue, number of employees, building size, and business type. Not every business qualifies for a BOP. High-risk industries, businesses with large revenues, and businesses with unique property or liability exposures may need to purchase commercial general liability and commercial property insurance separately.
Industries commonly covered under BOP programs include retail stores, professional offices, restaurants (with limitations), technology firms, service businesses, child care facilities, and many others. GLS Insurance will determine whether your business qualifies for a BOP and, if not, build a comparable standalone coverage program.
Frequently Asked Questions: Business Owners Insurance
Is a BOP enough coverage for my small business, or do I need more?
A BOP is an excellent starting point, but most small businesses need additional coverages beyond the BOP. At minimum, most businesses also need workers’ compensation for employees, commercial auto for business vehicles, and some form of professional liability. GLS Insurance reviews your complete risk profile and recommends a comprehensive program — not just the minimum.
How much does a Business Owners Policy cost?
BOP premiums vary based on your business type, annual revenue, building size and construction, location, the coverage limits you select, and your claims history. A small professional office might pay $500–vc_column_text,500 per year for a BOP. A restaurant or retail store typically pays more. GLS Insurance shops multiple BOP carriers to find the most competitive rate for your business.
Can I add cyber liability coverage to my BOP?
Many carriers now offer cyber liability as an endorsement or add-on to a BOP. Standalone cyber policies generally provide broader coverage, but BOP cyber endorsements can be cost-effective for small businesses with basic cyber risk. GLS Insurance will advise you on the best approach based on your specific cyber exposure.
My business is in Missouri but I have an office in Illinois. Does my BOP cover both locations?
Your BOP can typically be endorsed to cover multiple locations across multiple states. Each location needs to be listed on the policy and may be subject to its own property values and premium. GLS Insurance coordinates multi-location BOP programs across all 17 states in our territory.
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