General Liability vs Business Owners Policy (BOP): Which Saves You More?
A BOP costs about $40 to $70 per month more than standalone GL but adds commercial property and business interruption coverage. For most businesses with physical assets, it saves money compared with buying both coverages separately. The decision rests on whether you need property coverage in the first place.
What each policy includes
| Coverage component | Standalone GL | BOP |
|---|---|---|
| Bodily injury (third party) | Yes | Yes |
| Property damage (third party) | Yes | Yes |
| Personal & advertising injury | Yes | Yes |
| Products-completed operations | Yes | Yes |
| Commercial property (your building / contents) | No | Yes |
| Business interruption / lost income | No | Yes |
| Equipment breakdown | No | Often included |
| Computers and electronic equipment | No | Often included |
| Crime / employee dishonesty | No | Often included as endorsement |
Cost comparison
Five common coverage approaches priced for a typical small business with $250K to $750K revenue, one to five employees, and a single small commercial location. Figures reflect published industry ranges, not single quotes. Use them as benchmarks for your own scenarios.
| Coverage approach | Typical monthly cost | What you get |
|---|---|---|
| Standalone GL only | $45 - $79 / mo | GL coverage only |
| GL + standalone property | $95 - $180 / mo combined | Both coverages, no bundle discount |
| BOP (recommended) | $57 - $147 / mo | GL + property + business interruption, 10 to 25 percent cheaper than standalone sum |
| GL + property + cyber + EPL | $140 - $280 / mo combined | Multiple standalone policies |
| BOP + cyber + EPL | $110 - $220 / mo combined | BOP plus a couple of add-on lines |
Who should choose standalone GL
Three profiles where standalone GL is the right answer:
- Home-based businesses with no commercial premises and minimal owned equipment.
- Online-only retailers and service businesses with no inventory and no physical operations.
- Very small consultants, freelancers, and creatives whose property is limited to a laptop or two.
Who should choose a BOP
Most small businesses with a physical operation will save money on a BOP. Five profiles where it is almost always the right answer:
- Restaurants and cafes with kitchen equipment, build-out, and inventory.
- Retailers (brick and mortar) with inventory, fixtures, and store build-out.
- Service businesses with a leased office space and meaningful equipment (medical, dental, salons, fitness).
- Contractors with a shop, yard, or storage facility containing tools and materials.
- Professional offices (legal, accounting, design) with significant equipment investment.
BOP eligibility
Not every business qualifies for a BOP. Each carrier publishes its own appetite, but five eligibility tests are nearly universal:
| Eligibility factor | Typical carrier rule |
|---|---|
| Revenue cap | Most carriers cap BOP eligibility at $5M to $10M annual revenue |
| Employee count | Most carriers cap eligibility at 100 employees |
| Industry | Office, retail, light service. Most contractors, restaurants over a size threshold, and high-risk industries write standalone |
| Building size | Most carriers cap at 25,000 to 35,000 square feet for BOP eligibility |
| Loss history | Three years of clean claims is typical for BOP underwriting |
Above BOP eligibility
Once your business outgrows the BOP cap (revenue, premises size, employee count, or industry classification), you build a similar package using a commercial package policy (CPP) or separate standalone policies. The coverage is the same; the structure and pricing change. CPP packages from middle-market commercial carriers are the typical answer for a $5M to $50M business.