What a business owner's policy (BOP) is

A business owner's policy, or BOP, is a combination commercial policy designed for small businesses that covers property, general liability, and business interruption in one package. That is the California Department of Insurance's description in its commercial insurance guide.

The same guide splits commercial insurance into property and casualty. Property covers loss to business property from a covered peril; its examples include commercial property, inland marine, boiler and machinery, and crime. Casualty is mainly liability, and the guide lists commercial automobile, commercial general liability, commercial umbrella, and workers' compensation as separate lines. A BOP bundles the first group with general liability. The guide also says a CGL policy has major exclusions, so read them and ask your agent when they are unclear.

What stays outside depends on the form, so ask. The Department treats commercial auto and workers' compensation as their own lines, and workers' compensation is required by Labor Code §3700 for employers. General liability, as Insurance Code §108(a) defines the liability class, leaves out workers' compensation and vehicle insurance. So a business with employees and vehicles usually needs those written separately, and a BOP is one part of the program. Each insurer decides which kinds of business it will write as a BOP and which endorsements it allows, so eligibility and the exact forms are an underwriting question for the quote.

Business interruption is the piece owners overlook: it is meant to help replace income and cover continuing expenses while a covered loss keeps the business closed. Ask how long it pays and what loss triggers it. See business owner's package insurance, BOP vs general liability, and general liability.