What is a business owner's policy (BOP)?

A BOP bundles general liability, commercial property, and business interruption insurance into one policy, usually at a lower total price than buying them separately.

A business owner's policy (BOP) combines three core coverages in one package: general liability (third-party injury and property damage claims), commercial property (the business's own buildings, equipment, and inventory), and business interruption (lost income when a covered event forces the business to close temporarily). Insurers price the bundle below the cost of separate policies, which is why most small businesses that qualify buy a BOP rather than standalone general liability. Eligibility limits — typically by business size, payroll, and industry — exclude higher-risk operations, which need individually underwritten commercial packages instead. The US Small Business Administration's insurance guide lists BOPs among the standard policies small businesses evaluate.