Business Owners Policy (BOP)
Property and liability limits in your package policy
A Business Owners Policy bundles property and liability coverage with convenient, often customizable limits. Understanding how these limits work together helps you ensure adequate protection.
A BOP combines commercial property insurance and general liability into a single policy. Property coverage has limits for your building (if owned) and business personal property (contents, equipment, inventory). Liability limits work the same as standalone GL.
Unlike à la carte policies, BOPs often include valuable coverages at lower limits by default—business interruption, equipment breakdown, and crime coverage. You can typically increase these limits for additional premium.
Most BOPs have a minimum property limit (often $250,000-$500,000) and standard liability limits ($1M per occurrence/$2M aggregate). Your agent can help you choose limits that match your actual exposure.
Types of Coverage Limits
Building Coverage
$500,000 - $5,000,000
Covers the building structure you own. Set at replacement cost or actual cash value.
Business Personal Property
$100,000 - $1,000,000
Covers equipment, inventory, furniture, and other business contents. Usually replacement cost.
Business Interruption
12 months of income
Covers lost income and ongoing expenses when a covered loss forces you to suspend operations.
General Liability (per-occurrence)
$1,000,000
Maximum paid for any single liability claim (bodily injury, property damage, or personal injury).
Recommended Limits by Business Size
| Business Type | Recommended Limit |
|---|---|
| Home-based business | $250K property / $1M liability |
| Small retail/office | $500K property / $1M liability |
| Restaurant/service business | $500K-$1M property / $1M liability |
| Growing business with contracts | $1M+ property / $2M liability |
Need help with your business owners policy (bop)?
Our licensed agents can help you understand your coverage options and find the right policy for your business.