What revenue and square footage limits apply to a business owners policy?

A business owners policy (BOP) caps eligibility on specific numbers, not just business type: annual revenue, square footage, and number of employees. Most insurers cap BOP eligibility under $5 million in annual revenue, though the exact cutoff varies by carrier and industry class - a business within the right class but over the revenue or square-footage line still does not qualify for standard BOP pricing.

What size thresholds do insurers actually use?

Insurers draw eligibility lines based on several measurable factors: annual revenue, number of employees, and the square footage of the business location. For a direct comparison of BOP pricing versus separate commercial policies, see our guide on BOP cost versus separate coverage in Georgia. Our guide on which businesses qualify for a BOP covers eligibility by business class rather than size.

What businesses fall outside BOP eligibility?

Businesses with more complex operations or higher hazard exposures often fall outside BOP eligibility. Manufacturers, distributors with large warehouses, businesses with significant fleet exposure, and companies in certain high-risk trades typically need separate, individually tailored commercial policies rather than a packaged one.

For example, a commercial roofing contractor with a large crew, multiple vehicles, and six-figure contract values usually exceeds what a standard BOP can accommodate. That business typically needs a standalone general liability policy, a separate commercial auto policy, and possibly a combination of other commercial lines to fill all the gaps.

What coverage does a BOP leave out?

Workers compensation insurance is required for most employers once they cross their state's employee-count threshold, three or more in Georgia, five or more in Alabama, and is never included in a BOP. Commercial auto insurance for owned vehicles is also written on a separate policy. Professional liability coverage, also called errors and omissions, is likewise excluded from standard BOP forms and is important for any business that provides advice or professional services. See our guide on Georgia workers compensation employee count rules for details on when that requirement kicks in.

Whether a BOP fits a specific business depends on its size, industry, location, and the combination of risks it actually carries. A coverage review can walk through the options. Request a free coverage review to get started.