For SME owners, managing insurance can feel like assembling a complex puzzle. The Business Owner's Policy (BOP) is designed to simplify this process by bundling essential coverages into one integrated policy.
What is a BOP and Its Advantages?
A BOP combines several essential SME coverages into one policy:
- Simplicity: One policy, one premium, one contact point
- Cost-effectiveness: Often cheaper than separate policies
- Comprehensive coverage: Covers fundamental business needs
What's Generally Included
- General Liability Insurance: Protection against third-party claims
- Commercial Property Insurance: Protection for physical assets
- Business Interruption Insurance: Coverage for lost income during closures
Who is Eligible for a BOP?
BOPs are designed for small to medium businesses with:
- A physical location
- Fewer than 100 employees
- Less than $5 million in annual revenue
- Low-risk operations
Cost Comparison in 2025
| Coverage Type | Separate Cost |
|---|---|
| General Liability | $42/month |
| Commercial Property | $67/month |
| Total Separate | $109/month |
| BOP Average Cost | $57/month |
A BOP can offer savings of nearly 50% compared to separate policies.