Business Owners Policy (BOP)
What Is a Business Owners Policy?
A Business Owners Policy (BOP) bundles several types of insurance coverage into one policy, which typically includes:
- General Liability
- Commercial Property (your building)
- Business Personal Property (your on-site business property and building contents)
- Business Income or Extra Expense (lost income after a covered property loss)
It’s designed for small businesses like salons, suites, and spa owners that need both liability and property coverage in a single package.
Why it Matters for Beauty and Bodywork Professionals
- One policy, fewer gaps: A BOP covers liability for client injuries and damage to your furniture, treatment devices, and inventory
- Financial protection: Business income coverage may replace lost revenue while your space is being repaired after a covered los
- Contract readiness: Many landlord or lease requirements include proof of liability and property coverage
- Cost-efficiency: One Business Owners Policy can be simpler and less expensive than buying the different types of coverage separately
What Does a BOP Include?
BOP insurance typically includes general liability coverage, commercial property and/or business personal property coverage, and business income or extra expense coverage.
Swipe →
| Coverage | What It Helps With | Beauty & Bodywork Example |
|---|---|---|
|
General Liability |
Client or customer injuries and harm or damage to others |
A client slips on a wet floor and is injured |
|
Commercial Property |
Damage to your building |
A fire breaks out and your business space or building sustains fire and smoke damage |
|
Business Personal Property (BPP) |
Claims related to movable business property
|
Damage or theft of your essentials, like a facial steamer, table, or retail |
|
Business Income |
Lost revenue after damage from a covered cause |
A burst pipe closes the suite for two weeks |
What Do Business Owners Policies Not Include?
BOP policies typically do not include:
- Professional liability coverage
- Commercial auto insurance
- Workers compensation
- Coverage for tools and equipment while it’s in transit (known as inland marine insurance)
- Cyber security or data breach coverage
- Additional insureds
Swipe →
| Coverage | Typically Included | Typically an Add-On |
|---|---|---|
|
General Liability |
✅ |
— |
|
Commercial Property |
✅ |
— |
|
Business Income |
✅
|
— |
|
Professional Liability |
— |
✅ |
|
Commercial Auto |
— |
✅ |
|
Workers Comp |
— |
✅ |
|
Inland Marine (tools in transit) |
— |
✅ |
|
Cyber Liability (cybercrime or data breach coverage) |
— |
✅ |
|
Additional Insureds |
— |
✅ |
How Do I Choose Between a BOP Policy and a Base Policy + Add-Ons?
In most cases, a Business Owners Policy fits best when:
- You lease or own a physical space
- You have significant furniture, devices, and retail stock that you’d struggle to replace
- You’ve made significant upgrades to the physical space that you cannot remove
- You want coverage for your business income in case something like a fire or burst pipe shuts you down
A base liability policy with add-ons is typically better suited for solo or mobile business owners who need liability coverage for venues and clients, and whose gear is limited or relatively easy to replace.
Related Terms
- Base Policy
- General Liability
- Professional Liability
- Business Personal Property
- Inland Marine/Tools & Equipment
- Additional Insured
- Certificate of Insurance (COI)
- Deductible
- Per-Occurrence Limit
- Aggregate Limit
