Published by Prominent Insurance Services on January 28, 2026 in Business Insurance.
A Business Owners Policy bundles essential coverages at a discount. Learn what a BOP includes, who qualifies, and whether it is the right choice for your small business.
A Business Owners Policy — commonly called a BOP — is one of the most popular and cost-effective insurance products for small to medium-sized businesses. It bundles several essential business coverages into a single policy at a price that is typically 15 to 30 percent less than purchasing each coverage separately. If you own a small business in Delaware, Pennsylvania, New Jersey, or Maryland, a BOP may be the smartest insurance decision you can make.
A standard Business Owners Policy bundles three core coverages:
General liability insurance protects your business from third-party claims of bodily injury, property damage, and advertising injury. If a customer slips and falls in your store, if your product injures someone, or if your advertising is alleged to have harmed a competitor, general liability covers the legal defense costs, settlements, and judgments. Standard BOP limits are $1 million per occurrence and $2 million aggregate.
Commercial property insurance covers your business's physical assets, including the building (if you own it), business personal property (equipment, furniture, inventory, computers), and improvements or betterments you have made to a leased space. Coverage typically applies to damage from fire, lightning, windstorm, hail, explosion, smoke, vandalism, and certain types of water damage.
Business income insurance (also called business interruption insurance) replaces your lost net income and covers continuing expenses if your business is forced to close temporarily due to a covered property loss. For example, if a fire damages your restaurant and you cannot operate for three months, business income coverage pays for your lost revenue, rent, utilities, payroll, and other ongoing expenses during the restoration period.
One of the advantages of a BOP is the ability to customize it with endorsements — additional coverages that address your specific business risks. Common BOP endorsements include:
Cyber liability coverage for data breaches, ransomware attacks, and other digital threats. This is increasingly important for any business that stores customer data or accepts credit card payments. Many carriers now include basic cyber coverage in their standard BOP, with options to increase limits.
Equipment breakdown coverage for damage to mechanical, electrical, and pressure equipment that results from internal malfunction rather than external causes. A standard property policy typically excludes equipment breakdown, so this endorsement fills an important gap for businesses that rely on specialized equipment.
Employment practices liability (EPLI) for claims alleging wrongful termination, discrimination, harassment, or other employment-related issues. EPLI claims are one of the fastest-growing areas of business litigation, and even unfounded claims can cost tens of thousands of dollars to defend.
Inland marine coverage for business property that is transported or used off-premises. This is important for contractors who carry tools to job sites, photographers who travel with equipment, and any business with valuable property that moves.
Hired and non-owned auto coverage for liability when employees use rental cars or their personal vehicles for business purposes. This is different from a commercial auto policy and fills the gap between personal auto coverage and business liability.
Food spoilage coverage for restaurants, grocery stores, and other businesses that store perishable inventory. This covers the loss of food and beverages due to equipment breakdown or power outage.
BOPs are designed for small to medium-sized businesses. Each insurance carrier has its own eligibility criteria, but general qualification guidelines include:
Businesses that are too large, too complex, or in high-hazard industries may not qualify for a BOP and instead need a Commercial Package Policy (CPP), which provides similar coverages but with more customization options and higher available limits.
The primary financial advantage of a BOP is cost savings. Here is a simplified comparison for a typical small retail store in Delaware:
Separate policies:
BOP (bundled):
The exact savings depend on your industry, location, coverage limits, and claims history. In some cases, the BOP also includes coverages — like equipment breakdown or basic cyber liability — that would cost extra if purchased separately.
A CPP provides similar coverages to a BOP but is designed for larger or more complex businesses. Key differences include:
Flexibility. A CPP allows more customization of coverage terms, limits, and deductibles. A BOP uses standardized coverage forms with less room for modification.
Limits. A CPP typically offers higher available limits for both liability and property coverage. BOPs may cap certain coverages at levels that are insufficient for larger businesses.
Eligibility. A CPP has no size or revenue restrictions, while a BOP is limited to businesses that meet the carrier's eligibility criteria.
Cost. A BOP is generally less expensive than a CPP because it uses simplified underwriting and standardized forms. If your business qualifies for a BOP, it is almost always the more cost-effective choice.
Retail stores — BOPs provide property coverage for inventory and equipment, general liability for customer injuries, and business income coverage if you need to close temporarily.
Restaurants and cafes — Add food spoilage and equipment breakdown endorsements to a standard BOP for comprehensive restaurant coverage.
Professional offices — Accountants, consultants, marketing firms, and other professional service businesses benefit from the combination of property and liability coverage, with E&O added as an endorsement.
Medical and dental offices — Property coverage for expensive medical equipment, liability for patient injuries on premises, and business income if you cannot see patients.
Contractors with a shop or office — Property coverage for your tools and equipment at your business location, general liability for completed operations, and business income if your shop is damaged.
Prominent Insurance Services helps small businesses across Delaware, Pennsylvania, New Jersey, and Maryland find the right BOP coverage at competitive rates. We compare BOP options from carriers like our carrier partners to find the best combination of coverage and price for your business. As an independent agency, we are not limited to one carrier's products — we shop the market on your behalf. Call us at 302-351-3368 or schedule a free strategy session to get started.