Insurance terms · 5 min read

What Is a Business Owner's Policy (BOP)?

A Business Owner's Policy — almost always called a BOP — is a bundled insurance policy that combines two foundational coverages, general liability and commercial property, into a single package for small businesses. In plain terms, it's the convenient "starter" policy that handles the everyday physical-world risks: someone gets hurt at your office or you damage someone else's property (general liability), and your own equipment, furniture, or inventory is damaged or stolen (commercial property). This guide explains what a BOP includes, what it costs, what it deliberately leaves out, and why technology startups almost always need more than a BOP alone. It's written for founders, CFOs, and office managers setting up a company's first insurance program.

The short answer (as of July 2026)

A Business Owner's Policy (BOP) bundles general liability and commercial property insurance into one discounted package for small businesses, usually with business interruption coverage included. Small businesses pay a median of about $83 a month — roughly $990 a year — for a BOP (Insureon, 2025), typically less than buying the two coverages as separate policies.

What a BOP Bundles Together

A standard BOP packages two core coverages, and many carriers add a few common extensions.

  • General liability. Pays for third-party bodily injury and property damage — the classic slip-and-fall at your office, or accidentally damaging a client's property. It also typically covers certain advertising and personal injury claims. For the full picture of this coverage on its own, see our general liability insurance guide.
  • Commercial property. Covers your own business property — computers, furniture, equipment, inventory, and improvements — against covered perils like fire or theft, whether you own or lease your space.
  • Business interruption (commonly included). Replaces lost income if a covered property loss forces you to suspend operations.

The appeal is simplicity and price: one policy, one renewal, and usually a lower combined premium than buying general liability and property on their own. For startups, general liability is also frequently required by enterprise contracts and office leases, which we cover in our general liability for startups guide.

What a BOP Costs

Small businesses pay a median of about $83 a month, or roughly $990 a year, for a BOP (Insureon, 2025). For comparison, the same source reports a median of about $45 a month for standalone general liability and about $108 a month for standalone commercial property — which is why the bundle is usually the better buy for a business that needs both.

Your own price moves with the usual underwriting inputs: industry, location, square footage, the value of property you're insuring, limits, and claims history. An office-based software company with a modest amount of equipment generally sits at the inexpensive end of the range; a business with inventory, foot traffic, or specialized equipment pays more.

What a BOP Does Not Cover

A BOP is broad on physical-world basics but intentionally narrow — it leaves out most of the risks that matter most to technology companies.

A BOP generally does not include cyber liability, technology errors and omissions, directors and officers liability, employment practices liability, professional liability, workers' compensation, or commercial auto. Those are separate policies. For a software or SaaS company, the biggest real exposures — a data breach, a product that fails a client, an investor dispute, or an employment claim — all fall outside a BOP.

Illustrative scenario: a SaaS startup buys a BOP, assumes it's "covered," and is surprised when a customer data breach generates costs the BOP won't touch — because breach response is a cyber exposure, not a property or general-liability one. That gap is exactly why founders pair foundational coverage with cyber insurance and tech E&O.

Why Tech Startups Usually Need More Than a BOP

A BOP is a sensible base layer, but for a venture-backed technology company it's only the beginning. Your most valuable assets aren't furniture and laptops — they're data, software, contracts, and your leadership team, none of which a BOP protects well.

Most technology founders build a program that starts with general liability (often via a BOP) and adds cyber, tech E&O, D&O, and EPLI as the company hires, raises capital, and signs enterprise contracts. Enterprise master service agreements frequently demand specific cyber and professional-liability limits a BOP simply doesn't provide. For the full sequence, see our startup insurance and business insurance for startups guides.

Build a Complete Program with OnePark Risk

OnePark Risk helps founders go beyond a basic BOP to build programs that match how technology companies actually operate — adding cyber, tech E&O, D&O, and EPLI as you grow. Request a coverage review and we'll map the right base and specialty coverages to your stage, contracts, and risk.

Frequently asked questions

How much does a Business Owner's Policy cost?

Small businesses pay a median of about $83 a month, or roughly $990 a year (Insureon, 2025). Industry, location, property values, and limits move individual pricing up or down from that median.

What's the difference between a BOP and general liability?

General liability is one component of a BOP. A BOP bundles general liability together with commercial property (and usually business interruption) in a single, often discounted package, whereas standalone general liability covers only the third-party injury and property-damage piece.

Does a BOP cover a data breach?

No. Breach response, ransomware, and privacy liability are cyber coverages, which a standard BOP excludes. A technology company needs a separate cyber policy alongside its BOP to address those risks.

Is a BOP enough insurance for a tech startup?

Rarely on its own. A BOP covers general liability and property, but it leaves out cyber, tech E&O, D&O, and EPLI — the coverages that address a tech company's biggest exposures. Most startups use a BOP as a base and add those lines.

Sources

This material is general educational information, not legal, tax, or insurance advice. Coverage availability, policy terms, and regulatory requirements vary by state, carrier, and applicant.