A Business Owner’s Policy (BOP) is a bundled insurance package designed specifically for small to medium-sized businesses. It combines several important coverages into one cost-effective policy, making it easier and more affordable for business owners to protect their operations.

✅ Who Should Get a BOP?

  • Small businesses with a physical location (storefront, office, warehouse)

  • Companies with assets to protect (equipment, furniture, inventory)

  • Businesses that interact with customers or clients in person

Key Differences Between General Liability and Business Owner’s Policy (BOP):

Feature General Liability (GL) Business Owner’s Policy (BOP)

Covers Third-Party Lawsuits?✅ Yes ✅ Yes (Includes GL Coverage)

Covers Business Property?❌ No ✅ Yes (Buildings, Equipment, Inventory)

Covers Business Interruption?❌ No ✅ Yes (Lost Income Due to Property Damage)

Customizable?✅ Limited ✅ More Coverage Options Available

Cost?💲 Lower💲 💲 Higher (But More Comprehensive)

Best For? Service-based businesses, Small to med businesses with property & physical assets contractors, or freelancers

Which One Should You Choose?

✔ Choose General Liability if:

  • You don’t own a business location or property.

  • You just need protection from lawsuits (bodily injury, property damage claims).

✔ Choose a BOP if:

  • You own or rent a business location.

  • You have inventory, equipment, or physical assets.

  • You want business interruption coverage in case of disasters.

✅ Choose a BOP if:

  • You own or lease a physical location (storefront, office, or warehouse).

  • You have valuable property (inventory, equipment, tools, furniture) to protect.

  • You want business interruption coverage in case you’re temporarily forced to close (e.g., fire or theft).

  • You're a small to mid-sized business in retail, food service, professional services, or light manufacturing.

  • You want a cost-effective bundle instead of buying separate policies.

Example:

A boutique owner who leases a retail space, keeps inventory, and sees walk-in customers should strongly consider a BOP.

✅ Choose General Liability Insurance if:

  • You operate from home or virtually and don’t need property protection.

  • You don’t have business property or equipment to insure.

  • You're mainly concerned about third-party injuries, property damage, or lawsuits from clients or vendors.

  • You’re a freelancer, consultant, or very early-stage business on a tight budget.

Example:

A freelance graphic designer working remotely with only a laptop may just need general liability (and maybe professional liability too).

🧠 Bottom Line:

  • BOP = liability + property + business interruption → Best for small businesses with a location and physical assets.

  • General Liability only = lawsuit protection → Best for lean operations or virtual businesses.