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May 8, 2026
A Business Owner's Policy (BOP) bundles GL, commercial property, and business interruption — ideal for small businesses under 100 employees. Learn eligibility, what is included, and what is not.
Most small businesses need at least two types of coverage to operate safely: general liability (for third-party injuries and property damage) and commercial property (for their building, equipment, and inventory). A Business Owner's Policy — commonly called a BOP — bundles both into a single policy, typically at a lower combined rate than purchasing them separately. For many small businesses, a BOP is the smartest way to build a solid insurance foundation.
Dragon Insurance Services helps small businesses and growing teams across Pennsylvania, Texas, Virginia, Maryland, Ohio, Tennessee, and Kentucky find the right BOP coverage for their specific operations. Explore our Business Owner's Policy coverage options or read on for a full guide.
A standard Business Owner's Policy bundles three core coverages:
Commercial General Liability (GL)
Covers bodily injury, property damage, and personal and advertising injury claims from third parties. If a customer slips in your store, an employee breaks a client's equipment, or someone claims your advertising harmed their reputation — GL responds. Most BOPs include a $1M per occurrence / $2M aggregate limit, which satisfies most client contracts and commercial lease requirements.
Commercial Property Coverage
Covers your business property — the building (if you own it), equipment, furniture, inventory, and business personal property — against covered perils like fire, theft, vandalism, and storm damage. Property coverage is based on replacement cost or actual cash value; replacement cost is strongly recommended to avoid being underinsured after a major loss.
Business Interruption Insurance
Often included in BOPs — this covers lost revenue and ongoing operating expenses (rent, payroll, utilities) if a covered loss forces you to temporarily close. For example, if a fire destroys your storefront and you cannot operate for 3 months, business interruption pays your ongoing costs so you can survive the rebuild. This coverage is often described as one of the most critical — and most overlooked — in small business insurance.
Equipment Breakdown
Covers the cost to repair or replace key business equipment — such as HVAC systems, boilers, and electrical panels — that breaks down due to mechanical or electrical failure. Standard property coverage does not cover equipment failure; breakdown coverage fills that gap.
Crime Coverage
Many BOPs include a basic crime endorsement that protects against employee theft, forgery, and certain fraud losses — covering theft of money, securities, or property by employees. Coverage limits vary by carrier and can often be increased for businesses with higher exposure.
Extra Expense
Covers additional costs incurred to keep your business operating after a covered loss — such as renting temporary space, leasing replacement equipment, or expediting repairs. Works alongside business interruption coverage to minimize downtime.
A BOP is a strong starting point but is not a complete business insurance program on its own. Common coverages not included:
Not every business qualifies for a BOP — insurers use eligibility guidelines based on industry, revenue, size, and risk profile. BOPs are typically available for:
High-risk businesses — large manufacturers, certain contractors, and operations with significant product liability exposure — may not qualify for a standard BOP and instead need individually rated GL and property policies. We will help you determine which approach fits your business.
BOP premiums vary significantly based on industry, revenue, property value, and location. General annual estimates for typical small businesses:
| Business Type | Typical Annual BOP Estimate |
|---|---|
| Office-based professional services | ~$500 – $1,200/year |
| Retail stores | ~$700 – $2,000/year |
| Restaurants and food service | ~$1,200 – $4,000/year |
| Contractors (light commercial) | ~$1,000 – $3,500/year |
| Janitorial, cleaning, landscaping | ~$600 – $1,800/year |
Estimates only. Actual premiums vary based on revenue, number of employees, property value, location, industry class, and carrier. Contact us for a personalized quote.
For most small businesses, a BOP offers:
Advantages of a BOP
When separate policies may work better
We compare BOP options from multiple carriers — including carriers specializing in your specific industry — to find the best combination of coverage and price. We also make sure your policy includes the right business interruption limit, the right property coverage amount, and the right GL limits for your contracts and leases.
Tell us what your business does, your annual revenue, number of employees, and whether you own or lease your space — we can usually get a quote started the same day.
Visit us: 1525 Cedar Cliff Dr STE 202, Camp Hill, PA 17011
Serving small businesses across PA, TX, VA, MD, OH, TN, and KY.
Dragon Insurance Services LLC is a licensed independent insurance agency. A Business Owner's Policy is not required by law in the states we serve, though client contracts, commercial leases, and licensing requirements may mandate specific coverage. BOP eligibility requirements vary by carrier and industry. Coverage availability, terms, and rates vary by carrier, state, business type, and individual profile. Cost estimates are general market examples and do not constitute a quote or guarantee of specific pricing. Contact us for a personalized quote.
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