A Business Owners Policy bundles general liability and commercial property into one cost-effective package – designed for small to mid-sized businesses. It is the most common starting point for Texas business insurance and typically costs less than buying each coverage separately.
What is a Business Owners Policy?
A BOP combines two essential coverages, commercial general liability and commercial property, and adds optional coverages such as business interruption, equipment breakdown, and cyber liability. It is designed for businesses with low to moderate risk and physical operations.
Why you need it:
- Required by most commercial leases and landlords
- Required by many B2B clients before contract signing
- Bundles two essential coverages at a lower combined price
- Easy to add common endorsements as your business grows
- Available for retail, restaurants, offices, contractors, and light manufacturers
What it typically covers:
- General liability – third-party bodily injury and property damage
- Commercial property – your building, contents, and inventory
- Business interruption – lost income during a covered shutdown
- Equipment breakdown (often optional)
- Optional add-ons: cyber, employment practices, professional liability
Frequently asked questions:
What businesses qualify for a BOP?
Most small to mid-sized businesses with under 100 employees and modest annual revenue qualify. Higher-risk operations (heavy manufacturing, certain contractors) may need a separate package policy.
How much does a BOP cost in Texas?
Premiums vary widely by industry, revenue, location, and coverage limits. Many small Texas businesses pay between $500 and $3,000 per year for a starter BOP.
Do I still need workers’ compensation if I have a BOP?
Yes, workers’ compensation is a separate policy and is not included in a BOP.