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What Is Business Owner’s Policy Insurance?

By August 2, 2021April 12th, 2023No Comments

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Picture this: you’re in the process of reopening your restaurant. The tables are set, the staff is trained, and you can see customers beginning to line at the door. A sudden alarm rings out in the distance – there’s an unexpected kitchen fire.

Fortunately, you protected your business with insurance from Gaudette Insurance. Our agents helped you find the perfect Business Owner’s Policy (BOP) for your new venture. 

Not every small business is so lucky. 40% of small businesses do not have business insurance and 75% of U.S. businesses are underinsured. That’s why we put together a guide to explain exactly what a BOP is and why it is important for all businesses to talk to their local insurance agent about protecting their assets.

What is a Business Owner’s Policy?

A Business Owner’s Policy (BOP) combines business property and business liability insurance into one business insurance policy. A BOP helps protect your business from claims resulting from accidents such as fire, theft, or other disasters. In simple terms, a Business Owner’s Policy is like a homeowner’s policy for a business.

Businesses can tailor their BOP to help meet their unique needs by adding optional coverages like:

  • Data Breach

  • Business Income for Off-Premise Utility Services

  • Other Specialized Coverages

One of the reasons Gaudette Insurance recommends a BOP is because it can be custom-made to fit industry specific businesses. This means that a BOP is great for businesses of any size that may face the risk of loss or damage.

Who Needs a BOP?

You should consider a Business Owner’s Policy if:

  • Your business has a physical location. Your BOP can cover businesses run out of your home, a rented or owned office, store, or garage.

  • If a customer is injured in the workplace, without the proper coverage, you may be looking at a hefty out-of-pocket fee to cover any medical expenses.

  • You have assets that could get stolen or damaged. From digital assets and customer data, to equipment, cash, or inventory, with a BOP, you don’t have to worry about what to do if assets get stolen or damaged.

What Makes Up a BOP?


A BOP includes, but is not limited to:


  • Property Insurance

  • Liability Insurance

  • Business Interruption Insurance

  • Crime Insurance

  • Equipment Breakdown Insurance

  • Medical Payments Coverage

  • Personal and Advertising Injury


Having a BOP is like having general liability insurance and commercial property insurance at the same time. With general liability insurance, you can protect your business against customer injury or damage to the client in any way. 


What is the Advantage of Purchasing a BOP?

Purchasing a BOP is smart and convenient. It simplifies coverage needs by including business property insurance and business liability insurance. Gaudette Insurance can find you a policy that is affordable, as purchasing both business property and liability policies can get expensive.

What Are the Eligibility Requirements?


Not all small businesses are eligible for a BOP. Before you can purchase a BOP, you must ensure that your business has a low industry risk. A BOP is ideal for small businesses that want to protect themselves from the costs of legal lawsuits.

As Lee Gaudette continues to say: “always put our client’s interest first” and Gaudette Insurance has put the needs of our clients above all else. Our team will not only help you find quality coverage, but will support you through the claims process quickly and hassle-free. Contact your local Gaudette Insurance agent today.