What is a Business Owners Policy (BOP)?

A BOP is a bundle policy designed for many main-street businesses—think offices, retail shops, light service businesses, and certain contractors—who want broad protection without piecing together multiple standalone policies.

At Simpson & Blom Insurance in Annapolis, MD, we often explain it like this: a BOP packages the “core” protections many businesses in and around Annapolis rely on, then you can customize it with add-ons based on how you operate.

Who is a BOP best for?

A BOP is typically best for businesses that are:

Small to midsize
Operating in a low-to-moderate risk category
In a fairly standard industry class (professional services, retail, salons, small restaurants, small medical/dental offices, light contracting, etc.)
Able to meet insurer guidelines around building condition, revenue, payroll, and certain operational details

A BOP can be a strong match if you…

Have customers in your space (slip-and-fall risk)
Sign contracts that require proof of insurance
Own business equipment, inventory, or furniture you can’t easily replace
Want one policy that’s simpler to manage

You may need something beyond a BOP if you…

Have higher-risk operations (heavy construction, manufacturing, large fleets, certain professional liability exposures)
Need specialized coverage that isn’t a clean “BOP fit”
Have unusual property situations (high value property, older buildings with certain conditions, multiple locations, etc.)

If you’re unsure, that’s normal—eligibility varies by insurer and business details. A quick call with Simpson & Blom in Annapolis usually clears it up fast.

What does a BOP typically include?

While every carrier’s BOP form is a little different, most BOPs are built around two foundations:

1) General Liability (customer injuries, property damage, advertising injury)

This is the coverage that responds when your business is accused of causing harm—like:

A customer slips on a wet floor
You accidentally damage a client’s property while doing work
You face certain personal/advertising injury claims (depending on the policy wording

2) Commercial Property (your building and/or your business contents)

This part helps cover damage to property you own (or are responsible for) such as:

Inventory, equipment, furniture
Signs
Improvements you’ve made to a leased space (often called tenant improvements/betterments)
Sometimes the building itself (if you own it)

Often included (or commonly built into the package)

Depending on the insurer and how it’s written, BOPs frequently include some form of:

Business income / extra expense (helps keep you afloat if a covered loss shuts you down)
Medical payments (small medical bills for minor injuries—helps reduce friction)
Product & completed operations (important if your work could cause harm later)
Basic limits for certain property extensions (like valuable papers or outdoor signs—varies widely)

The key takeaway: a BOP is meant to cover the most common claims that can derail a small business—liability + property—then you tailor it.

BOP vs. buying policies separately

This is one of the biggest reasons business owners ask about BOPs.

Why a BOP can be a better deal

Bundle pricing: Many insurers price a BOP attractively compared to buying General Liability + Commercial Property separately.
Simpler management: One renewal date, one policy, one set of documents for many contracts.
Designed for small business needs: The package often includes common extras you’d otherwise forget to add.

When buying separately can make more sense

You need a very specific property setup (multiple buildings, special valuations, unique protection requirements)
Your liability exposures are complex (higher limits, unusual contractual risk, specialized endorsements)
Your business category isn’t eligible for a BOP with most carriers
You’re combining multiple specialized lines (like professional liability, pollution, high cyber exposure) in a way that’s better built intentionally rather than bundled

A quick rule of thumb: If you’re eligible, start with a BOP quote first, then compare it to a “separate policies” structure. Simpson & Blom can show both side-by-side so you’re not guessing.

Common add-ons to consider (the “smart upgrades” list)

Most businesses need more than the basics sooner or later. Here are add-ons we commonly discuss with Annapolis-area business owners:

Cyber Liability

If you store customer data, take online payments, use email heavily, or rely on a network (so… basically everyone), cyber coverage is worth considering.

Equipment Breakdown

Helps when key equipment fails due to mechanical/electrical breakdown (think HVAC, refrigeration, certain machinery). This is especially relevant for restaurants, offices with server equipment, and businesses that can’t operate without climate control.

Umbrella / Excess Liability

Adds extra liability limits above your underlying policies—useful if you have higher foot traffic, bigger contracts, or just want more protection for a relatively efficient cost.

Is a BOP right for you? A quick gut-check

A BOP is usually worth it if you can say “yes” to most of these:

I want liability + property in one place
I have business equipment, inventory, or a workspace I can’t easily replace
I want simple and budget-friendly coverage, not a complex program
I’m in a common business category that insurers like to write on BOP forms

If you want to confirm eligibility and see real numbers (often the deciding factor), the quickest next step is a quote.