A business owners policy (BOP) combines two essential commercial coverages into a single package: general liability coverage and commercial property insurance. Instead of purchasing those coverages separately, a qualifying small or mid-size business buys one policy that handles both. Most BOPs also include business interruption coverage, which replaces lost income and covers ongoing fixed expenses when a covered loss forces a temporary shutdown. The BOP structure was designed specifically for businesses that do not need the complexity or cost of a large commercial package policy.
What does a business owners policy cover?
A BOP covers three main categories. Commercial property coverage protects the physical assets of the business: the building (if owned), equipment, inventory, furniture, and computers. General liability coverage pays for bodily injury and property damage claims brought by third parties, including customers injured on the premises, advertising injury claims, and product liability. Business interruption coverage replaces lost revenue and covers ongoing expenses like rent and payroll if a covered event, such as a fire or a burst pipe, forces the business to close temporarily.
For example, a retail clothing store that suffers a fire in its stockroom uses the commercial property portion to repair the building and replace damaged inventory, the business interruption portion to pay rent and employee wages during the closure, and the liability portion if a customer is injured during cleanup operations.
Who qualifies for a BOP in Georgia?
BOPs are available to small and mid-size businesses across most industries. Restaurants, retail shops, professional offices, service firms, and small contractors are common BOP buyers in Georgia. Carrier eligibility guidelines vary, but most carriers look at annual revenue (typically under $5 million to $10 million, depending on carrier and industry), number of employees, type of operations, and physical footprint. A business operating from a single location under 25,000 square feet generally falls within the size range where a BOP is available. Larger businesses or those with more complex risk profiles typically need a commercial package policy instead.
For example, a Suwanee accounting firm with five employees and one office location is a strong BOP candidate, while a commercial general contractor with multiple field crews, heavy equipment, and jobsite operations across several counties would need coverage that goes beyond what a BOP provides.
What does a BOP not cover?
Workers compensation is a separate statutory line and is never included in a BOP - employee-count thresholds for when it becomes required vary by state. Professional liability, also called errors and omissions (E&O) coverage, is not included and must be purchased separately by professional service firms. Commercial auto is excluded; vehicles owned or regularly used by the business need a dedicated commercial auto policy. Cyber liability coverage for data breaches and ransomware is generally not part of a standard BOP, though some carriers offer it as an endorsement. Flood damage is also excluded from the property portion of a BOP.
How much does a BOP cost in Georgia?
BOP pricing depends on the type of business, annual revenue, location, building characteristics, and the coverage limits selected. A small professional office might pay $500 to $1,500 per year. A restaurant or retail shop with higher liability exposure and more inventory might pay $2,000 to $5,000 or more. The deductible selected for the property portion affects the annual premium: a higher deductible reduces the premium but increases out-of-pocket cost after a loss. Georgia-specific factors such as local crime rates, building code requirements, and fire district classification also influence property rates.
How is a BOP different from separate policies?
The main advantage of a BOP over separately purchased general liability and commercial property policies is cost. Carriers bundle the two coverages at a discount compared to writing them as standalone policies, and a single policy simplifies renewal and claims management. The trade-off is that BOPs carry standardized coverage terms that may not fit every business exactly. A business with unusually high inventory values, specialized equipment, or high-limit liability needs may find that endorsements or standalone policies provide a better fit. A coverage review with a commercial lines agent can clarify whether a BOP or a customized commercial package is the right structure. See our commercial insurance page for a full overview of business coverage options available through Olive Cover.