Business Owner's Policy (BOP) for Minnesota Businesses
A Business Owner's Policy — commonly called a BOP — combines general liability and commercial property coverage in a single policy. For qualifying small and mid-size businesses, a BOP can be a cost-effective way to address two of the most fundamental commercial insurance needs together.
What a Business Owner's Policy Covers
A BOP typically includes general liability coverage — which may respond to third-party claims of bodily injury, property damage, and personal and advertising injury — and commercial property coverage for your building (if owned), business personal property, and business income.
Because the two coverages are packaged together, a BOP is often priced more favorably than purchasing general liability and commercial property separately. Insurers also typically include certain additional coverages in a BOP that might otherwise require separate endorsements.
A BOP can often be customized with endorsements to add coverages such as professional liability, cyber liability, employment practices liability, or equipment breakdown — depending on the carrier and the business's needs.
Who Typically Qualifies for a BOP
BOPs are designed for small to mid-size businesses that meet certain eligibility criteria. Eligibility typically depends on the type of business, annual revenue, square footage of the premises, and the nature of operations. Not all businesses qualify — some industries, larger businesses, and higher-risk operations may need to purchase general liability and commercial property separately through a commercial package policy (CPP) or individually. An independent agent can help determine whether a BOP is available and appropriate for your business.
Exposures a BOP May Address
Customer injuries on premises
A customer slips and falls in your store or office. The general liability component of a BOP may respond to bodily injury claims from customers and visitors.
Property damage to others
Your employee accidentally damages a client's property while performing work. The general liability component may respond to property damage claims.
Business property losses
A fire, theft, or storm damages your equipment, inventory, or furniture. The commercial property component may respond to covered property losses.
Business income interruption
A covered property loss forces your business to close temporarily. Business income coverage — typically included in a BOP — may replace lost revenue and pay continuing expenses during the restoration period.
Personal and advertising injury
A claim alleges that your advertising infringed on a copyright or made a defamatory statement. The general liability component may respond to personal and advertising injury claims.
Important Limitations and Exclusions to Understand
- A BOP does not include workers' compensation insurance. Workers' compensation must be purchased separately and is required by Minnesota law for most employers.
- A BOP does not include commercial auto insurance. Vehicles used for business purposes need a separate commercial auto policy.
- Professional liability (errors and omissions) is typically not included in a standard BOP, though some carriers offer it as an endorsement. Businesses that provide professional services should evaluate whether professional liability coverage is needed.
- Not all businesses qualify for a BOP. Larger businesses, higher-risk operations, and certain industries may need a commercial package policy or individually placed coverages.
- Flood and earthquake damage are typically excluded from the property component of a BOP, just as they are from standalone commercial property policies.
Information Typically Needed to Evaluate Coverage
- Description of business operations — what you do and who your customers are
- Annual revenue
- Building information — owned or leased, square footage, construction type, year built
- Business personal property value — equipment, inventory, and fixtures
- Number of employees
- Prior claims history — typically three to five years
Coverages a BOP Does Not Include
Workers' Compensation
Required by Minnesota law for most employers — must be purchased separately from a BOP.
Learn moreCommercial Auto
Business vehicles need a separate commercial auto policy — not included in a BOP.
Learn moreCyber Liability
Cyber coverage is typically not included in a standard BOP but may be available as an endorsement.
Learn moreGeneral Liability
Included in a BOP — but businesses that don't qualify for a BOP can purchase general liability separately.
Learn moreCommercial Property
Included in a BOP — but businesses that don't qualify for a BOP can purchase commercial property separately.
Learn moreIndustries We Commonly Help
Frequently Asked Questions
Coverage availability, terms, conditions, exclusions, and limits vary by carrier and individual risk. Not all businesses qualify for a BOP. The information on this page is general in nature, does not constitute legal advice, and does not guarantee that any specific loss will be covered. Consult your policy documents for the terms that apply to your coverage.