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What is a business owner’s policy?
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What does a business owner’s policy cover?
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Business Owner’s Policy (BOP): What It Covers, Best Options
Updated Jan 23, 2026
Expert verified
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A business owner’s policy is a bundle of three important types of business insurance: general liability insurance, commercial property insurance and business interruption insurance.
Businesses typically need fewer than 100 employees or less than $5 million in annual revenue to be eligible for a BOP. If your business has an office or storefront or sells physical products, a business owner's policy may be a good fit.
It may not be the only insurance policy you need, though. For instance, you'll need to buy commercial auto insurance and workers’ compensation insurance separately if you have vehicles or employees.
Here are some top options for getting a BOP, as well as what else to know about this coverage.
Chubb
Best for Best overall BOP
Pros
- Simple online shopping experience that most businesses can likely complete in a few minutes.
- BOP includes business interruption and extra expense coverage.
- Fewer complaints than expected about liability coverage and far fewer than expected about property coverage.
Cons
- If you have more than $2 million in annual revenue, you'll need to talk with an agent or shop elsewhere.
- Can’t get commercial auto insurance online.
Chubb is the second-largest writer of commercial insurance policies, according to the most recent data from the Insurance Information Institute. This insurer offers a business owner's policy with a variety of optional add-on coverages. These include data breach and data liability insurance, as well as crime and employee dishonesty insurance. You can get a quote and buy a Chubb BOP online if your business has less than $2 million in revenue.
- General liability insurance.
- BOP.
- Business property insurance.
- Business interruption insurance.
- Professional liability insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
Chubb is the second-largest writer of commercial insurance policies, according to the most recent data from the Insurance Information Institute. This insurer offers a business owner's policy with a variety of optional add-on coverages. These include data breach and data liability insurance, as well as crime and employee dishonesty insurance. You can get a quote and buy a Chubb BOP online if your business has less than $2 million in revenue.
- General liability insurance.
- BOP.
- Business property insurance.
- Business interruption insurance.
- Professional liability insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
Chubb is the second-largest writer of commercial insurance policies, according to the most recent data from the Insurance Information Institute. This insurer offers a business owner's policy with a variety of optional add-on coverages. These include data breach and data liability insurance, as well as crime and employee dishonesty insurance. You can get a quote and buy a Chubb BOP online if your business has less than $2 million in revenue.
The Hartford
Best for Working with an agent
Pros
- Fewer complaints than expected filed with state regulators about both liability and property insurance.
- You can add data breach, professional liability and business income for off-premises utility service coverage to The Hartford's business owner's policy.
- You can add an additional insured and request a certificate of insurance online.
Cons
- No coverage available in Alaska or Hawaii.
- Not all businesses can get a quote online.
The Hartford says you can easily customize its BOPs with coverages like data breach insurance and off-premises utility insurance. Some businesses can get a quote online, but The Hartford might direct you to a staffer to finish your purchase over the phone. That can be helpful if you want to talk through individual endorsements to make sure you understand what you’re getting.
- Business owner's policies.
- General liability insurance.
- Professional liability insurance.
- Workers’ compensation insurance.
- Commercial property insurance.
- Business income insurance.
- Data breach insurance.
- Commercial umbrella insurance.
- Commercial auto insurance.
- Employment practices liability insurance.
- Liquor liability insurance.
The Hartford says you can easily customize its BOPs with coverages like data breach insurance and off-premises utility insurance. Some businesses can get a quote online, but The Hartford might direct you to a staffer to finish your purchase over the phone. That can be helpful if you want to talk through individual endorsements to make sure you understand what you’re getting.
- Business owner's policies.
- General liability insurance.
- Professional liability insurance.
- Workers’ compensation insurance.
- Commercial property insurance.
- Business income insurance.
- Data breach insurance.
- Commercial umbrella insurance.
- Commercial auto insurance.
- Employment practices liability insurance.
- Liquor liability insurance.
The Hartford says you can easily customize its BOPs with coverages like data breach insurance and off-premises utility insurance. Some businesses can get a quote online, but The Hartford might direct you to a staffer to finish your purchase over the phone. That can be helpful if you want to talk through individual endorsements to make sure you understand what you’re getting.
Ergo Next
Best for Buying a BOP online
Ergo Next is a commercial insurance company that sells all its policies online. It was founded as Next and acquired by Ergo, a global insurance company, in 2025. Ergo Next sells BOPs and other common types of coverage, like workers’ comp and professional liability insurance. You can buy them all in one transaction. Policyholders can also access and share their certificates of insurance digitally.
- General liability insurance.
- BOP.
- Commercial property insurance.
- Professional liability insurance.
- Commercial auto insurance.
- Tools and equipment insurance.
- Commercial property insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
- Liquor liability insurance.
- Product liability insurance.
- Contractor license bonds.
Ergo Next is a commercial insurance company that sells all its policies online. It was founded as Next and acquired by Ergo, a global insurance company, in 2025. Ergo Next sells BOPs and other common types of coverage, like workers’ comp and professional liability insurance. You can buy them all in one transaction. Policyholders can also access and share their certificates of insurance digitally.
- General liability insurance.
- BOP.
- Commercial property insurance.
- Professional liability insurance.
- Commercial auto insurance.
- Tools and equipment insurance.
- Commercial property insurance.
- Umbrella insurance.
- Workers’ comp.
- Cyber insurance.
- Liquor liability insurance.
- Product liability insurance.
- Contractor license bonds.
Ergo Next is a commercial insurance company that sells all its policies online. It was founded as Next and acquired by Ergo, a global insurance company, in 2025. Ergo Next sells BOPs and other common types of coverage, like workers’ comp and professional liability insurance. You can buy them all in one transaction. Policyholders can also access and share their certificates of insurance digitally.
Hiscox
Best for Professional services businesses
Pros
- Can get a quote and purchase some policies online.
- Discounts of up to 5% available when you buy two or more Hiscox products, plus a 14-day money-back refund policy.
- Professional liability policies cover work done anywhere in the world.
Cons
- Far more complaints than expected filed with state regulators about both liability and property coverage.
- No coverage available in Alaska; business owner's policies are unavailable in several states.
Hiscox is another longstanding insurance company that sells BOPs online. It offers business owner's policies in 43 states and Washington, D.C. You can fill out a short questionnaire about your business’s insurance needs, and then you'll be able to get a quote and decide whether to purchase the policy. You can buy professional liability and cybersecurity insurance with your BOP.
- General liability.
- Professional liability.
- Business owner's policy.
- Cyber insurance.
Hiscox is another longstanding insurance company that sells BOPs online. It offers business owner's policies in 43 states and Washington, D.C. You can fill out a short questionnaire about your business’s insurance needs, and then you'll be able to get a quote and decide whether to purchase the policy. You can buy professional liability and cybersecurity insurance with your BOP.
- General liability.
- Professional liability.
- Business owner's policy.
- Cyber insurance.
Hiscox is another longstanding insurance company that sells BOPs online. It offers business owner's policies in 43 states and Washington, D.C. You can fill out a short questionnaire about your business’s insurance needs, and then you'll be able to get a quote and decide whether to purchase the policy. You can buy professional liability and cybersecurity insurance with your BOP.
What is a business owner’s policy?
A business owner’s policy is an insurance package that combines several different protections. A BOP typically includes three types of insurance:
- General liability insurance. This protects your business if you’re sued by a customer or third party for something like bodily injury, property damage or slander.
- Business property insurance. This protects your building in case of theft, fire or other physical damage. It also covers your equipment and inventory (or your “business personal property”).
- Business interruption insurance. This pays out to cover the income you lose while you can’t operate, like in the weeks after a natural disaster.
Who should buy a business owner's policy?
Any business that has physical assets, like equipment or inventory, should have a BOP.
NerdWallet recommends that every business carry general liability insurance. If you also have property, it’s simplest to bundle the two types of coverage together.
Business owner's policies are typically available to businesses that have less than $5 million in annual revenue and fewer than 100 employees. That includes industries like:
- Retail.
- Contractors.
- Grocery stores and convenience stores.
- Landlords of apartment buildings.
- Condo associations.
- Wholesalers.
- Warehouses.
In general, businesses in the following industries are not eligible for BOPs because they face too many additional risks:
- Car dealerships.
- Bars and pubs.
- Banks and financial institutions.
- Auto repair shops.
- Amusement parks.
Some restaurants can buy BOPs. But it depends. For example, if your business earns a significant amount of revenue from alcohol sales, insurance companies may see your business as more risk-prone and recommend a specific liquor liability insurance policy instead.
If you’re not sure if you need or qualify for a BOP, find an insurance agent. They can help you understand what types of business insurance you need. You can also get quotes from insurance companies directly to see what coverage they offer.
What does a business owner’s policy cover?
A business owner’s policy covers the costs of:
- Defending your business against certain lawsuits.
- Repairing or replacing damaged property.
- Covering medical bills for injured customers.
- Missing revenue when a qualifying event forces your business to close.
BOPs provide these protections through the following types of insurance. Most insurance companies sell these separately, but a BOP is an easy way to make sure you have all three.
General liability insurance
General liability insurance is the first line of defense for a small-business owner and is always in a business owner's policy. It covers the cost of defending against lawsuits alleging bodily injury, property damage or personal injury. It can also pay out to cover medical claims.
Anyone who owns a small business should have general liability insurance. You might even have to show proof of liability insurance when signing a contract or getting a small-business loan.
Commercial property insurance
The other main coverage in a business owner's policy is business property insurance. This can protect your building along with your equipment or inventory. Commercial property insurance can pay for the repair or replacement of covered items that are vandalized, stolen, lost, accidentally broken or damaged by weather.
Any business that owns or leases commercial space should have commercial property insurance. Most landlords expect their tenants to have their own policy. You should also have this coverage if you manufacture products, keep inventory on hand or have equipment.
Business interruption insurance
Most insurance companies also include business interruption insurance in their business owner's policies. But this varies by insurer. Business interruption insurance covers lost income when your business has to temporarily slow down or stop operations after a covered event (for instance, a burst pipe).
Business interruption insurance is a good idea for every business that has recurring expenses like payroll. If your business can’t generate revenue for a while, this coverage can help you keep up with your bills.
Optional coverages in a BOP
You may have the opportunity to add coverage to your policy. These are called “endorsements.” Here are some common ones:
- Spoilage coverage. This is a component of property insurance. It protects perishable goods, like food or fresh-cut flowers, in case of a covered disaster.
- Equipment breakdown coverage. This takes care of repair or replacement costs for business equipment, like electronics and machines, that break down.
- Tools and equipment coverage. These endorsements extend property coverage to tools that belong to you or your employees personally or that you rent from a third party — not just the tools your business owns.
- Cyber insurance. These endorsements can help cover the cost of recovering from a data breach, including notifying your customers and responding to their legal claims.
- Hired and non-owned auto insurance. This coverage extends liability insurance to your employees’ personal vehicles when they’re using them on the job. Normally, liability insurance only covers cars and trucks the business owns or rents.
What does a business owner's policy not cover?
A BOP usually doesn’t cover:
- Employee injuries. Workers' compensation insurance, legally required for most employers, covers injuries or illnesses that employees experience in the scope of their work.
- Lawsuits filed by your clients. Professional liability insurance protects service businesses and professionals against claims of negligence.
- Damage to your vehicles. Commercial auto insurance insures you against accidents that happen while you’re driving for business purposes.
- Flood and earthquake damage. Small businesses typically must buy separate, specialized policies to cover flood and earthquake damage. Business property insurance doesn’t cover these events — similar to how homeowner’s insurance doesn’t usually cover floods.
- Lawsuits filed by your employees. Employment practices liability insurance, or EPLI, guards your business against claims of discrimination, such as gender or race-based discrimination.
How much does a business owner’s policy cost?
The median cost of a business owner's policy is $57 per month or $684 per year, according to insurance marketplace Insureon.
How much your BOP will cost depends on lots of different things.
How much coverage do you need?
Many small businesses purchase a $1 million/$2 million BOP. This means the insurer will provide $1 million per claim and $2 million total over the lifetime of the policy (usually one year). That’s usually a good place to start, especially if you live in a place with relatively low risk from natural disasters.
Higher or lower limits may be available depending on your insurance company.
The quote process usually presents several options with different prices. The more coverage you have, the more expensive your policy will be.
How risky is your industry?
Industries with more exposure to risk will pay a higher premium than lower-risk industries. For instance, it’s easier to get hurt on a construction site than in a bookstore. That means contractors are probably more likely to file a liability claim than bookstore owners are.
What property do you own or rent?
For the commercial property insurance portion of your BOP, the cost depends on the type and value of the property you’re insuring. That includes the space you own or rent along with everything in it.
The higher the property value and the more difficult the property is to replace, the higher the cost.
Where is your business located?
Some regions are more prone to natural disasters than others. Some streets see more burglaries than others. And some states have specific regulations that make lawsuits cost more. All those factors affect your BOP premiums.
How big is your business?
As you grow to have more employees and customers, you have more interactions that could lead to lawsuits or property damage. That means you need more coverage — which costs more.
Have you filed claims before?
Insurers pay attention to your claims history when calculating your premiums. If you’ve filed claims before, you’ll typically pay more for coverage in the future.
Methodology
Business insurance ratings methodology
NerdWallet rewards business insurance companies for reliability and good service. We calculate star ratings based on scores in about a dozen categories. These include:
- Each company's financial strength.
- How many complaints customers made relative to its market share.
- How easy it is to get coverage.
- How accessible customer service is.
Learn more about how we rate small-business insurance companies.
Our editorial team routinely fact-checks and updates these data points. We also adjust our scoring on an ongoing basis. This helps our star ratings reflect changing industry norms. For instance, in 2026, we began evaluating how easy insurers make it to add an additional insured.
Our ratings are a guide. But insurance policy details and prices can vary widely. We encourage you to shop around and compare several insurance quotes.NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
One key factor in our star ratings is how many complaints insurance companies get. Here's how we arrive at that score.
Disappointed customers can file a complaint with their state's insurance department. The National Association of Insurance Commissioners (NAIC) collects, analyzes and groups complaints by business line and insurance company every year. A business line is a specific type of coverage, like workers’ comp.
Then, the NAIC calculates a complaint ratio for each company. It divides the company's share of complaints by its share of total premiums for each line of business. It then adds these ratio values to their official complaint index.
- A complaint ratio of 1 means a company received about the expected number of complaints relative to its size.
- A ratio of 2 means it received twice as many complaints as expected.
- A ratio of 0 means it received half as many complaints as expected.
NerdWallet obtains the raw NAIC data every year. We aggregate results at the company level and fact-check these results. Then we calculate a three-year average of each insurer's complaint ratio and convert it to a score for our star ratings.
Business insurance star ratings consider complaints about two lines of business: commercial liability and commercial property. We analyze complaint data on commercial auto and workers' comp policies too. But we don't currently incorporate these into our ratings since they're less universal.