BUSINESS OWNERS POLICY (BOP)

Simplified protection for small to mid-sized businesses

A Business Owners Policy (BOP) bundles multiple essential coverages into a single, streamlined insurance policy. It is designed for qualifying small to mid-sized businesses seeking broad protection for common operational risks — often at a more efficient cost than purchasing policies separately.

While a BOP may appear “simple,” it is a powerful foundation when structured correctly.

What a Business Owners Policy Covers

A standard BOP typically includes:

General Liability
Protection against third-party bodily injury, property damage, and certain personal or advertising injury claims.

Commercial Property
Coverage for owned or leased business property, including buildings, equipment, inventory, furniture, and improvements.

Business Income & Extra Expense
Replaces lost income and helps cover ongoing expenses if operations are interrupted due to a covered loss.

Medical Payments
Pays for minor injuries to third parties regardless of fault, helping prevent small incidents from escalating into lawsuits.

Coverage can often be enhanced with endorsements to address industry-specific risks.

What It Does Not Cover

While a BOP provides broad protection, it does not automatically include:

• Professional liability or errors & omissions

• Workers’ compensation

• Commercial auto

• Directors & officers liability

• Cyber liability (unless endorsed)

• Employment-related claims

• Flood or earthquake (unless endorsed)

Additional policies may be required depending on your business operations.

Who Is a Business Owners Policy Designed For?

BOPs are intended for qualifying businesses that meet certain underwriting criteria, such as:

• Retailers and wholesalers

• Restaurants and hospitality businesses

• Professional offices

• Light manufacturing and distribution

• Service-based businesses

• Small commercial property owners

Eligibility depends on factors such as revenue, payroll, square footage, and operational risk.

How Coverage Is Structured

Business Owners Policies are typically written on an occurrence basis for liability coverage, while property coverage is subject to specific valuation methods, deductibles, and coinsurance provisions.

Key considerations include:

• Property limits and valuation (replacement cost vs. actual cash value)

• Business income limits and waiting periods

• Covered causes of loss

• Endorsements and exclusions

A BOP should be customized — not treated as a one-size-fits-all solution.

Real-World Claim Examples

• A fire damages a business location, forcing temporary closure

• A customer slips and falls on the premises

• Theft of inventory or equipment

• Storm damage interrupts normal operations

These types of losses can significantly impact cash flow without proper coverage.

Why Proper Placement Matters

Not all BOPs are created equal. Coverage can vary widely based on:

• Carrier forms and endorsements

• Industry eligibility

• Property valuation accuracy

• State-specific requirements

An improperly structured BOP can leave businesses underinsured or exposed to significant gaps.

Our Approach

At Cory Washington & Co., we evaluate whether a Business Owners Policy is appropriate for your operation — and when it makes sense to separate coverages instead. We focus on aligning coverage with how your business actually operates today and how it plans to grow.

The goal is simplicity without sacrificing protection.

Disclaimer

All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.