What is a 'Business Owners Policy' (BOP)?

A Business Owners Policy (BOP) is a packaged commercial insurance product designed primarily for small to medium-sized businesses. It bundles two core coverages: (1) Commercial Property — insuring the building (if owned) and business personal property (inventory, equipment, fixtures); (2) Commercial General Liability — insuring against third-party bodily injury and property damage claims. Many BOPs also include business income/extra expense coverage (for lost income during a covered shutdown), employee dishonesty coverage, and equipment breakdown. Eligibility for BOP is based on business size, type, and risk class — typically retail, office, restaurant, and similar 'main street' businesses qualify. Larger or higher-risk businesses use separate commercial property and CGL policies with more customization. BOPs offer convenience and often better pricing than separately-purchased coverages.