By Chris Painter, Director of Commercial Lines, Advanced Insurance Solutions · Updated November 9, 2026

Quick tip from Chris: Before year-end, check whether your business is paying for separate property and liability policies that could be combined into a business owners policy, and whether your current BOP's property limits still match what it would cost to replace your equipment, inventory and improvements today. A BOP packages property insurance, general liability and business income coverage into one policy built for small and mid-size businesses. It's often a cost-effective starting point, but it doesn't include workers' compensation, commercial auto or professional liability, so most businesses still need a few other pieces.

When we sit down with a new small business client, one of the first questions we hear is some version of "What do I actually need?" For a lot of offices, shops, salons and service businesses in Central PA, the answer starts with a business owners policy, usually called a BOP.

From our offices in Hershey and York, we help small businesses across Dauphin, Lebanon, Cumberland, Lancaster, York and Adams Counties, plus Harford, Baltimore and Carroll Counties in northern Maryland, put together insurance programs that fit. Here's how a BOP works and where it fits in.

What is a business owners policy?

A BOP is a package policy. According to the Insurance Information Institute (Triple-I), a BOP combines coverage for the major property and liability risks a small business faces into one policy, along with a number of additional coverages. Because it's packaged, a BOP is often priced more favorably than buying the same coverages separately.

What does a BOP usually cover?

Every insurance company builds its BOP a little differently, but most include three core pieces.

Property coverage. This protects the building if you own it, plus your business personal property: furniture, equipment, computers, inventory and supplies. If you lease your space, it can also cover improvements you've made to it.

General liability. This responds when your business is legally responsible for injuring someone or damaging their property. Think of a customer slipping on a wet floor in your Hershey storefront or an employee accidentally damaging a client's property.

Business income (business interruption). Triple-I explains that business income coverage helps replace income lost after a covered disaster, such as a fire, and can help with extra costs of operating from a temporary location while you rebuild. For many small businesses, this is the coverage that keeps the doors open after a big loss.

Many BOPs also include or offer smaller coverages such as equipment breakdown, spoilage of refrigerated goods, valuable papers, employee dishonesty, and limited cyber or data breach coverage. These vary widely by carrier, so read your policy or ask us to walk through it.

Who qualifies for a BOP?

Not every business does. Triple-I notes that only small- to medium-sized businesses meeting certain criteria are eligible. Insurance companies typically look at:

The type of business. Offices, retail stores, salons, restaurants, apartment and building owners, and many service businesses commonly qualify. Higher-hazard operations, like roofing or trucking, usually need a different program.

Size. Carriers set limits on square footage, revenue and the liability limits needed.

How much work happens off-site. Businesses that do most of their work at customers' locations are often a better fit for a contractor's package.

The building. Construction, age, fire protection and security all affect eligibility and price.

What doesn't a BOP cover?

This is where we see the biggest misunderstandings. A BOP typically does not include:

Workers' compensation. In Pennsylvania, any employer with at least one employee generally must carry workers' comp, according to the Department of Labor & Industry. It's always a separate policy.

Commercial auto. Vehicles owned by the business need a business auto policy. Triple-I lists business auto as one of the core coverages most small businesses need, separate from the BOP.

Professional liability (errors and omissions). If you give advice or provide a professional service, mistakes in that work generally aren't covered by a BOP's general liability. Some carriers offer limited professional endorsements for certain trades.

Employment practices liability. Claims from employees alleging discrimination, harassment or wrongful termination usually need separate coverage or an endorsement.

Flood and earthquake. These are typically excluded from standard commercial property forms.

Triple-I also notes that some items, like outdoor signs, may not be covered unless they're specifically added for an extra premium. That's why a line-by-line review matters.

Is a BOP better than buying separate policies?

For many qualifying businesses, a BOP is the efficient choice: one policy, one renewal date and often a lower combined price. Separate policies can make more sense when a business needs higher property limits, specialized coverage or liability limits beyond what a BOP allows, or when its operations don't fit a BOP program at all.

Because we're independent and work with more than 20 insurance companies, we can compare BOP programs from different carriers and also price the coverage as separate policies when that's the better fit.

Why is year-end a good time to review your BOP?

Your property values may be out of date. Equipment, furniture and build-out costs have risen in recent years. If your limits haven't kept up, a large claim could leave a gap.

Your business may have changed. New services, new locations, more employees or more off-site work can all affect whether your BOP still fits.

Your business income limit may be too low. Ask yourself how many months it would take to reopen after a fire and whether your coverage would carry you that long.

Frequently asked questions

Is a BOP the same as general liability insurance?

No. General liability is one part of a BOP. A BOP also includes property coverage and business income coverage in the same package.

Does a BOP cover my employees if they get hurt?

No. Employee injuries are covered by workers' compensation, which is a separate policy. In Pennsylvania, most employers with even one employee must carry it.

I lease my space. Do I still need a BOP?

Often, yes. Your lease likely requires you to carry liability insurance, and your equipment, inventory and improvements usually aren't covered by your landlord's policy.

Does a BOP cover a home-based business?

Sometimes. Triple-I notes a BOP can be a good fit for home-based businesses that need broader coverage, especially those operating from more than one location. Smaller home businesses may be able to use an endorsement or in-home business policy instead.

How much does a BOP cost?

It depends on your type of business, location, property values, liability limits and claims history. The best way to find out is to get quotes from several carriers.

Let's review your coverage before the new year

Whether you've never had a BOP or haven't looked at yours in a while, we're happy to review it with you. Request a business insurance quote or call us at 717-533-0252 (Hershey) or 717-845-1500 (York). Business owners are always welcome to stop by our Hershey office on West Chocolate Avenue or our York office on South Queen Street.

Sources: Triple-I: Small Business Insurance Basics · Triple-I: Insuring Your Home-based Business · PA Department of Labor & Industry: Workers' Compensation Employer Information

Coverage, eligibility and pricing vary by insurance company and policy. This article is general information, not a coverage guarantee. Talk with a licensed agent about your specific business.