Commercial · Business Owners Policy
Business owners policy (BOP) for Michigan small businesses
A business owners policy packages the property, liability and business income coverage most small businesses need into one policy. We compare BOP options across carriers and tell you plainly when your business needs more.
Schedule a Coverage ReviewWhat is a business owners policy?
A business owners policy, or BOP, is a packaged insurance policy that combines the core coverages most small businesses need: commercial property, general liability and business income. Instead of building a commercial package coverage by coverage, a small business gets a bundled, ready-to-go policy, usually at lower cost and with less paperwork. Exact terms vary by insurance company and by industry.
What does a business owners policy include?
A BOP typically includes commercial property coverage for buildings, furniture, fixtures, equipment and inventory; general liability for bodily injury and property damage caused by you or your employees while doing business; and business income coverage that replaces lost income and pays ongoing obligations when a covered loss disrupts or stops operations. Many BOPs also offer optional coverages that can be added for specific exposures.
| Coverage | What it actually touches | Where it stops |
|---|---|---|
| Commercial property | Buildings, furniture, fixtures, equipment and inventory you own or lease; can include accounts receivable and valuable papers and records | Your property limits and the causes of loss the policy excludes |
| General liability | Bodily injury and property damage to others caused by you or an employee during the course of business | Employee injuries, vehicles and professional errors |
| Business income | Lost income, payroll and ongoing obligations such as rent or a mortgage during a covered shutdown | The restoration period and limit in the policy |
Is my business a good fit for a business owners policy?
A BOP generally fits small and mid-sized businesses with standard, lower-hazard operations, such as offices, retail stores and many service businesses. Each carrier sets eligibility by business type, revenue, square footage and property values, and those rules differ widely. Businesses with higher-hazard operations, large property schedules or specialized contract requirements usually need a commercial package policy instead.
Because our carriers’ BOP programs have different eligibility rules, a business that one carrier turns away may qualify with another. We check that before you settle for a more expensive package.
What does a business owners policy not cover?
A BOP does not include workers’ compensation, commercial auto or professional liability, and it often provides little or no cyber coverage. Those exposures need separate policies or endorsements. A BOP’s liability limits may also fall short of what contracts or your assets require, which is where a commercial umbrella comes in.
- Workers’ Compensation — employee injuries
- Commercial Auto — business vehicles
- Professional Liability — errors in professional services
- Commercial Umbrella — higher liability limits
Related: General Liability · Commercial Property · Commercial Umbrella · Michigan Business Insurance
This page is educational and does not alter any policy. Coverage is determined by the actual policy forms, endorsements and declarations issued by the insurer.