Business
What a business owner’s policy covers, and what it leaves out
A business owner’s policy bundles property and liability for small businesses at a good price. The gaps matter as much as the coverage.
Published
Read time
5 min read
By
Signe Stellhorn
A business owner’s policy, or BOP, combines three coverages most small businesses need: property, general liability and business income. Carriers sell them as a package for offices, shops, cafés and many contractors.
What is inside
Property: your building or improvements, equipment, furniture and inventory
General liability: injuries and property damage you cause to others
Business income: lost profit and ongoing bills after a covered loss
What it leaves out
Workers’ compensation, which Iowa requires for nearly every employer
Professional mistakes, which need errors and omissions coverage
Vehicles titled to the business, which need commercial auto
Data breaches, which need cyber coverage
What it costs
In our 2026 examples a small office with five employees paid $55 to $120 a month for a BOP. Restaurants and contractors pay more because their risks are higher.
The question to ask your agent: which of my clients’ contracts require specific limits or certificates, and does my BOP meet them?
General information, not advice
This guide explains how insurance generally works. Premiums in examples are illustrations, not quotes or offers of coverage. Policy wording differs by carrier and your situation is your own, so talk to a licensed agent before you decide.
