What Does a Business Owner’s Policy Cover?
A covered fire can damage your stock and shut down a shop, leaving repair costs and lost sales. 4 4
Business Property
If a covered event damages your equipment, inventory or furniture, the property part addresses those business assets. 4Claims Against the Business
Use liability coverage for claims that your business injured someone or damaged their property; use property coverage for damage to your own assets. 3,4Income During an Interruption
If a covered disruption interrupts your business, business-interruption coverage addresses lost income, not just property repairs. 4| Part of the package | Ask in the quote |
|---|---|
| Property | Which business property and damage events does this quote address? |
| General liability | Which injury or property-damage claims against your business does it address? |
| Business interruption | What event triggers lost-income coverage, and what waiting and payment periods apply? |
Who Needs a Business Owner’s Policy?
Your business activities determine whether you qualify for a BOP; describe what you do when requesting a quote. 1,5
a Business Owner’s Policy Coverage Examples
What happened
A Fire Closes Your Shop
A fire damages your stock, and you close the shop while repairs are made.
How Do You Compare a Business Owner’s Policy Coverage and Costs?
Property Values and Liability Limits
Compare your property values, valuation terms and deductibles separately from the liability limits in the quote. 6,2The Income-Coverage Timeline
To see how long income payments could last after a covered shutdown, compare the trigger, waiting period and payment period with the time your business would need to reopen—not only the listed income limit. 6
What Exclusions and Conditions Should You Check in a Business Owner’s Policy?
Property Exclusions
Before you buy, check flood, earth-movement and wear-and-tear exclusions in the property coverage. 6Whether the Package Fits Your Business
Describe the work your business does before you apply; BOP eligibility depends on the business. 3How Does a Business Owner’s Policy Compare With Related Coverage?
Auto, Employees and Professional Services
If you need commercial auto, workers’ compensation or professional liability, quote those separately; a BOP does not include them automatically. 3What Do You Need for a Business Owner’s Policy Quotes?
To start a quote, gather your business locations, activities, property inventory and current policy; also review income patterns and essential operations if you need income protection. 1,5Connect the Operation to the Quote
| Prepare | Direct quote action |
|---|---|
| Locations and activities | Describe what your business does at each location and ask whether it qualifies. |
| Property inventory | List the equipment, furniture and stock you want covered. |
| Property values | Compare your estimates with the quote’s values, valuation terms and deductibles. |
| Current policy, if you have one | Ask the broker to explain differences between your current and proposed coverage. |
| Income patterns and essential operations | Explain what a shutdown would affect and ask how the quote addresses lost income. |
| Needs beyond the package | Ask separately about commercial auto, workers’ compensation and professional liability. |
Frequently Asked Questions About a Business Owner’s Policy
Does a BOP Include Workers' Compensation or Auto?
Not automatically. Commercial auto, workers' compensation and professional liability may need separate policies or additional coverage. 3
Can Any Small Business Buy a BOP?
No. Eligibility depends on what the business does. Describe your operations to the broker rather than assuming the package is available to every small company. 3
Is a BOP the Same as General Liability Insurance?
Business Owner’s Policy Guides by State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Which Insurance Providers Offer Business Owner’s Policy?
Sources for Business Owner’s Policy
- Commercial Insurance Guide. California Department of Insurance; Commercial Property; Inland Marine; What Should I Expect from a Broker-Agent. Version: Form 700 Revised June 14, 2024. Accessed 2026-09-16.
- Commercial property insurance guide. Texas Department of Insurance; Valuation; Coverage options; Shopping; Saving money. Version: Last updated December 9, 2025. Accessed 2026-09-16.
- Small Business. National Association of Insurance Commissioners; FAQ: What’s a business owners policy?; What’s general liability insurance. Accessed 2026-09-16.
- Business Interruption and Business Owner Policy. National Association of Insurance Commissioners; Background; General liability, Commercial property and Business interruption bullets. Version: Last updated June 25, 2026. Accessed 2026-09-16.
- What Business Income Loss Coverages Are Out There? Learn the Endorsements That Can Help with Lost Business Income. National Association of Insurance Commissioners; Top Things You Should Know; Things You Should Know. Version: May 29, 2020. Accessed 2026-09-16.
- Businessowners Coverage Form. Insurance Services Office, Inc.; hosted by Hiscox; Section I A.5.f pp.5–6, B pp.15–20, D p.21; Section II A p.31, D pp.41–42. Version: BP 00 03 01 10; copyright 2009. Accessed 2026-09-16.