Business Owners
Policy (BOP)

BOPs are designed for small and mid-sized businesses that meet specific eligibility criteria established by each insurance carrier. While exact requirements vary by carrier, most BOPs are available to businesses that occupy fewer than 25,000 to 35,000 square feet of space, generate less than $3 million to $10 million in annual revenue, have fewer than 100 employees, and operate in eligible industry classifications.

Common business types that qualify for BOPs in Delaware, Pennsylvania, New Jersey, Maryland, and Virginia include retail stores, restaurants and cafes (excluding bars and nightclubs in many cases), professional offices (accountants, consultants, architects, engineers), medical and dental offices, salons and spas, contractors (with some restrictions), wholesale distributors, technology companies, and service businesses.

Some higher-risk businesses, such as manufacturers, large construction operations, trucking companies, and businesses with significant products liability exposure, may not qualify for a standard BOP and instead need a Commercial Package Policy (CPP), which offers more customization but at a higher cost. Carriers like our carrier partners and more than 20 appointed carriers have broader BOP eligibility criteria than some competitors, accepting a wider range of industries and larger operations. Prominent Insurance Services evaluates your business operations to determine whether a BOP or a CPP is the most cost-effective approach.

Businesses that have outgrown BOP eligibility but want the convenience of bundled coverage can transition to a Commercial Package Policy that provides the same core coverages with additional customization options, higher coverage limits, and endorsements tailored to larger or more complex operations.

One of the most compelling reasons to choose a BOP over separate standalone policies is cost savings. Purchasing general liability, commercial property, and business income coverage as individual policies from different carriers results in higher total premiums, more administrative complexity, and potential coverage gaps where policies do not align perfectly.

A typical small business in Delaware might pay $800 per year for standalone general liability, $600 for standalone commercial property, and $300 for standalone business income coverage, a total of $1,700. The same business could secure a BOP from more than 20 appointed carriers for $1,200 to $1,400, saving 15% to 30% annually while maintaining equal or better coverage.

Beyond premium savings, a BOP offers administrative simplicity. You have one policy number, one renewal date, one premium payment, and one carrier to contact for claims. This reduces the risk of coverage gaps that can occur when multiple policies from different carriers have different effective dates, different coverage forms, or conflicting exclusions. Prominent Insurance Services helps businesses throughout Delaware, Pennsylvania, New Jersey, Maryland, and Virginia evaluate whether the cost savings and simplicity of a BOP outweigh the customization benefits of separate policies or a CPP.

While a standard BOP provides an excellent foundation of coverage, most carriers offer a menu of endorsements that allow you to tailor the policy to your specific business needs. These endorsements add coverage for exposures not included in the base BOP form, often at a fraction of what standalone policies would cost.

Cyber liability endorsement: Adds coverage for data breaches, ransomware attacks, and notification costs. For small businesses that handle customer data or process credit card transactions, this endorsement provides essential protection at a lower cost than a standalone cyber policy. Carriers like our carrier partners and more than 20 appointed carriers offer robust cyber endorsements for their BOP policyholders.

Employment Practices Liability Insurance (EPLI) endorsement: Covers claims of wrongful termination, discrimination, sexual harassment, and retaliation brought by current, former, or prospective employees. EPLI claims are among the fastest-growing areas of business litigation in Delaware, Pennsylvania, New Jersey, Maryland, and Virginia.

Equipment breakdown endorsement: Covers the cost of repairing or replacing mechanical, electrical, and electronic equipment that suffers a sudden and accidental breakdown. This includes HVAC systems, computers, phone systems, refrigeration equipment, and production machinery. Standard property insurance excludes equipment breakdown, making this endorsement essential for businesses that rely on specialized equipment.

Additional endorsements available on most BOPs include hired and non-owned auto liability, inland marine (tools and equipment used away from your premises), spoilage coverage (for businesses that store perishable goods), and identity recovery coverage. Our appointed carriers offer extensive endorsement menus that allow Prominent Insurance Services to build a customized BOP that addresses your complete risk profile.

Prominent Insurance Services reviews every available endorsement with you during the quoting process to ensure your BOP is properly tailored to the specific risks your business faces across Delaware, Pennsylvania, New Jersey, Maryland, and Virginia.

Business income with extra expense coverage, included in every BOP, is often the most underappreciated component of the policy. When a covered peril (fire, windstorm, lightning, vandalism, burst pipe, etc.) forces your business to temporarily close or relocate, business income coverage replaces the net income your business would have earned during the restoration period. Extra expense coverage pays for the additional costs of operating from a temporary location, such as renting space, moving equipment, and notifying customers.

The restoration period typically begins 72 hours after the loss and continues until your business is repaired and operational, or until the policy's time limit expires (usually 12 months, though extended periods are available by endorsement). For example, if a fire closes your restaurant in Wilmington for three months, business income coverage would replace the revenue you would have earned during those three months, minus any expenses that do not continue (such as variable costs for food and supplies you are not purchasing while closed).

When comparing a BOP to a Commercial Package Policy (CPP), the primary differences are eligibility, customization, and cost. A BOP is a pre-packaged product with standardized coverage forms and limited customization, it is simpler, faster to proposal, and less expensive. A CPP is a modular policy that allows you to select individual coverage parts, set specific limits for each coverage, and add specialized endorsements that may not be available on a BOP.

Businesses that need inland marine coverage for high-value mobile equipment, commercial auto coverage integrated with their property and liability, or specialized coverage forms for unique operations may benefit from a CPP. Our appointed carriers offer both BOP and CPP options, and Prominent Insurance Services helps you determine which structure provides the best value for your Delaware, Pennsylvania, New Jersey, Maryland, and Virginia business.