Business Owner’s Policy (BOP) Frequently Asked Questions

A Business Owner’s Policy (BOP) bundles business property and liability insurance into one convenient policy. The three parts of coverage within a BOP are:

 

No, a Business Owner’s Policy (BOP) doesn’t include workers’ compensation insurance coverage. You can add this coverage to the Business Owner’s Policy as additional protection. In fact, in most states you’re required by law to have workers’ compensation insurance if you have employees.

General liability insurance can be purchased as a standalone policy, but most business owners opt for a Business Owner’s Policy (BOP) for more coverage. With just a general liability insurance policy, you’d only be covered against claims that your business caused property damage, advertising injury or bodily injury to someone else. With a BOP, your business has coverage against more risks, like fire, theft, wind and lightning, and any lost income resulting from a covered loss to your own business property.

Yes, business interruption insurance, also known as business income insurance, is included in the Business Owner’s Policy (BOP) with The Hartford. This coverage helps replace your business’ lost income if you can’t operate due to covered property damage, like fire damage. Business interruption insurance can help your business continue to pay your operating expenses, like payroll and monthly bills.

A Business Owner’s Policy (BOP) combines commercial property and business income coverage with general liability insurance into one policy. The BOP can help protect your business from claims when your business caused someone bodily injury, property damage or advertising injury. It also helps protect your business’ property, equipment and inventory. And finally, a BOP can help replace lost income if you need to temporarily shut down your business due to a covered loss.

Typically, a BOP doesn’t include coverages like workers’ compensation, professional liability insurance, commercial auto insurance and data breach insurance. You can add these coverages on to your BOP as additional protection and to create a customized policy. You may be required to have certain types of insurance coverage depending on where your business is located, so be sure to check with your local laws.

Independent contractors are typically not covered under a Business Owner’s Policy. Instead, you’ll need independent contractors liability insurance. If you employ any independent contractors at your business, you can add them as additional insureds to your existing business insurance policy. 

Yes, The Hartford makes it easy for small business owners to customize their Business Owner's Policy (BOP) to meet their unique needs. You can do this by adding on optional coverages to ensure you’re more fully protected against the unique risks your business faces. Businesses with specific needs can tailor their BOP by adding coverages, like:

 

Although a Business Owner’s Policy (BOP) includes three essential types of business insurance, you may need additional coverage to make sure your business is more fully protected. Depending on your specific needs, you may want to consider these common optional coverages to add to your BOP:

 

It’s recommended to review and update your Business Owner’s Policy (BOP) on an annual basis. You may need to do this more frequently if you’ve made any changes to your business operations, like if you expanded, changed your business’ location or the number of employees you have.

Our customers paid an average annual cost of $1,019, or about $85 a month, for a Business Owner’s Policy (BOP).1 Remember, every small business is unique and has different needs so insurance rates will vary.

Insurance companies consider several factors when determining your BOP premium, including:

 

No matter the size of your company, one of the best ways to lower your business’ insurance cost is to reduce risks. There are a few other additional ways small business owners can save on the cost of small business insurance, including:

 

If your business grows or changes significantly during your policy period, you should notify your insurance company or insurance agent. Once you notify your insurer or agent, they will assist you in update your policy to avoid any potential gaps in coverage.

Remote employees may expose your company to risks not currently covered by your current business insurance. With a Business Owner’s Policy (BOP), you can bundle your coverage with data breach insurance to help protect your important company data from potential cyber risks that your business could be exposed to if your employees work from home. In addition, professional liability insurance can help protect you and your employees if mistakes are made in the professional services provided to customers or clients.

Yes, home-based businesses can still get a Business Owner’s Policy (BOP). For instance, say your home gets damaged by a fire or high winds. Your BOP can help cover damages to your business’ property. Keep in mind that a standard business owner’s policy combines property and liability coverage for your business.

While it’s not required by law to have a Business Owner’s Policy, some contracts or commercial landlords may require you to have certain types of business insurance. A BOP is a smart and convenient way to help protect your small business from unexpected accidents or claims. Without business insurance protection, you’d have to pay for costly claims out of pocket.