What is Business Owners Policy (BOP)?
Also called: BOP
A Business Owners Policy (BOP) bundles general liability with commercial property coverage, and sometimes business interruption, into one packaged policy for small businesses. It is a convenient base for sellers who also need to insure inventory, equipment, or a location, on top of product liability.
Why it matters for sellers
A pure product-liability need is often met by a general liability policy. A BOP makes sense once you also hold significant inventory, own equipment, or operate a warehouse you want to protect in the same package.
Example
A seller with a leased warehouse full of stock uses a BOP to cover both product liability claims and damage to the inventory.
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Questions
Do I need a BOP or just product liability?+
If you only need to cover product-injury claims, a general liability policy usually suffices. A BOP adds property and business-interruption coverage for sellers with inventory, equipment, or premises.
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Definition based on Insurance Information Institute and IRMI Glossary of Insurance & Risk Management Terms. Reviewed 2026-07-01. This is general information, not insurance advice.