What's Included in a Business Owners Policy
A Business Owners Policy (BOP) is a packaged insurance solution designed for small to mid-size businesses. It combines three core coverages that most businesses need into a single, streamlined policy — typically at a lower total cost than purchasing each one separately.
A standard BOP includes General Liability, Commercial Property, and Business Interruption coverage. Many carriers allow you to customize your BOP with additional endorsements based on your specific business needs.
General Liability
Covers bodily injury, property damage, and personal injury claims from third parties — clients, vendors, or the public.
Commercial Property
Protects your building, equipment, inventory, and business personal property from fire, theft, vandalism, and more.
Business Interruption
Replaces lost income and covers ongoing expenses if a covered event forces your business to temporarily close.
Equipment Breakdown
Optional add-on covering mechanical or electrical failure of key equipment — often excluded from standard property coverage.
Cyber Liability Add-On
Some BOP policies allow you to add cyber coverage, though standalone cyber policies typically offer stronger protection.
Professional Liability Add-On
Select carriers allow E&O coverage to be added to a BOP, ideal for service-based businesses with smaller exposures.
Which Illinois Businesses Qualify for a BOP
BOPs are designed for small to mid-size businesses with manageable risk profiles. Businesses that typically qualify include those with fewer than 100 employees, revenue under $5M, and operations in a low-to-moderate risk class.
Restaurants & Cafes
Food service businesses under $5M in revenue.
Retail Stores
Storefronts, boutiques, and specialty retail.
Professional Offices
Accountants, consultants, and agencies.
Small Contractors
Low-risk trades with office or shop locations.
Healthcare Offices
Clinics and non-hospital healthcare providers.
Service Businesses
Auto repair, cleaning, and similar service trades.
BOP vs. Commercial Package Policy (CPP): If your business is larger, higher-risk, or needs customized limits, a Commercial Package Policy may be a better fit than a BOP. We'll help you determine which is right for your operation. Trucking companies and roofing contractors, for example, typically need a CPP — not a BOP.
How Much Does a BOP Cost in Illinois?
BOP premiums for Illinois small businesses typically range from $500 to $3,500 per year depending on your industry, location, revenue, building size, and coverage limits. Businesses in higher-risk industries or with prior claims will see higher premiums.
Because a BOP bundles coverages together, you typically save 15–40% compared to purchasing general liability and commercial property separately. It's one of the most cost-effective ways to protect a small business.
BOP Insurance FAQs
Authoritative Sources
1 Illinois Department of Insurance — Business Insurance Overview: insurance.illinois.gov
2 Insurance Information Institute — Business Owners Policy: iii.org
3 U.S. Small Business Administration — Business Insurance: sba.gov
Last Updated: February 2026