General liability, property, and business income in one policy, explained for small businesses. When you’re ready, a licensed agent can compare options for your business.
Quick answer: A business owners policy, or BOP, bundles general liability, commercial property, and business income coverage into one policy, usually for less than buying each separately. It’s built for small businesses like restaurants, shops, offices, and many contractors. It doesn’t include workers’ comp, commercial auto, or professional liability, which you add separately.
A business owners policy combines the three coverages most small businesses need first. General liability pays when someone is injured or their property is damaged because of your business. Commercial property covers your building if you own it, plus equipment, inventory, and furniture. Business income replaces lost income and pays ongoing expenses if a covered loss forces you to close temporarily.
Most BOPs include these core coverages, with add-ons you choose based on your business.
| Coverage | What It Covers | Example |
|---|---|---|
| General liability | Injuries to customers and damage to other people's property caused by your business | A customer slips on a wet floor in your restaurant |
| Products and completed operations | Injury or damage from what you sell or work you've finished | A cabinet you installed falls after the job is done |
| Commercial property | Your building, equipment, inventory, and furniture | A kitchen fire damages your equipment |
| Business income | Lost income and ongoing expenses during a covered shutdown | You close for six weeks after a fire |
| Medical payments | Small medical bills for injured visitors, regardless of fault | A customer trips and needs stitches |
| Common add-ons | Equipment breakdown, spoilage, data breach, hired and non-owned auto | Your walk-in cooler fails overnight |
Most small businesses need at least one of these alongside their BOP.
Covers employee injuries and lost wages. Required in most states once you have employees, and in California with just one.
Covers vehicles your business owns or uses for work. Personal auto policies usually exclude regular business use.
Covers claims that your advice, design, or service caused a client financial harm. Common for consultants, designers, and other professional offices.
Your business type, location, payroll, and claims history drive the price, so a contractor and a café on the same street can pay very different amounts.
General liability covers injuries and property damage you cause to others. A BOP includes general liability plus coverage for your own property and lost income. If you rent your space and have little equipment, general liability alone may be enough. If you have inventory, equipment, or a location to insure, a BOP usually costs less than buying property and liability separately.
A BOP covers general liability, commercial property, and business income in one policy. That means injuries and property damage you cause to others, damage to your own equipment and inventory, and lost income if a covered loss forces you to close.
No. General liability is one part of a BOP. It covers injuries and property damage you cause to others, while a BOP adds property and business income coverage for your own business.
No. Workers’ compensation is always a separate policy. In California, it’s required as soon as you have one employee.
Many can, depending on the trade. Lower-risk trades like painting, handyman work, and carpentry often qualify, while higher-risk work like roofing usually needs a standalone general liability policy. Most contractors also add tools and equipment coverage.
Not automatically. If you serve alcohol, you’ll usually need liquor liability added to your policy or bought separately, and many landlords require it in the lease.
Many small businesses carry $1 million per occurrence and $2 million aggregate, partly because landlords, general contractors, and clients often require it. Start with what your lease and contracts require.
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