Shops · Offices · Storefronts · Texas Hill Country
Business Owners Policy (BOP) Insurance in Texas
A business owners policy (BOP) packages three coverages small Texas businesses usually need: property insurance for your building, equipment and inventory; general liability for injuries and damage to others; and business income if a covered loss shuts you down. It's built for smaller, lower-risk shops and offices. Workers' comp, commercial auto and flood are separate.
Allen Jones Insurance Agency can quote a BOP today for small shops and offices. Send your lease's insurance section and we'll match it.
What a business owners policy covers
Property. Your building if you own it, plus contents, equipment, furniture and inventory.
General liability. Claims that your business injured someone or damaged their property, from your premises and operations, and from your products and completed work. That's how the Texas Department of Insurance describes commercial general liability.
Business income. Lost income and ongoing expenses after a covered loss forces you to shut down for a while.
Other coverages, such as equipment breakdown, spoilage or data breach, are often available by endorsement, depending on the carrier. Ask what's included before you assume it is.
What a BOP doesn't cover
A BOP doesn't include workers' compensation, commercial auto, professional liability, or flood. In Texas, flood needs a separate policy (NFIP or private), and most new NFIP policies have a 30-day wait. Liquor liability, employment practices, and tools taken off-site also usually need their own coverage or an endorsement. Check your policy before a claim.
- Workers' comp is a separate policy. In Texas it's optional for most private employers. See general liability vs workers' comp in Texas.
- Commercial auto is a separate policy. See commercial auto insurance in Texas.
- Professional liability (E&O) for advice and services.
- Flood. See flood insurance for your business.
- Employment practices liability.
- Liquor liability, if you serve or sell alcohol.
- Tools and equipment away from your premises, which usually need inland marine.
- Cyber and sewer backup, which are worth asking about.
BOP vs general liability
General liability covers only claims that you injured someone or damaged their property. A business owners policy includes general liability plus property coverage for your space, equipment and inventory, and business income after a covered loss. A mobile or home-based service business may need only general liability. A shop or office with contents usually needs the BOP.
| General liability only | BOP | |
|---|---|---|
| Injury or damage to others | Yes | Yes |
| Your building, contents, inventory | No | Yes |
| Business income after a covered loss | No | Yes |
For trades that work at customers' sites, general liability plus inland marine for tools often fits better than a BOP. See contractor insurance in Texas.
Who qualifies for a BOP in Texas
BOPs are built for small and mid-size businesses. The Insurance Information Institute says they're normally for businesses with 100 or fewer employees and up to about $5 million in revenue, and some types, such as restaurants, may be ineligible. Each carrier sets its own rules by type of business, size, square footage and building, so the answer depends on the details.
BOP vs commercial package policy
When a business outgrows a BOP, with larger property values, a higher-hazard class or several locations, the same coverages can be written as a commercial package policy (CPP). A package takes more underwriting, but it's more flexible in limits and coverage choices.
Hill Country shops and offices: what to check
- Flood. Standard commercial property excludes flood. FloodSmart says NFIP business flood limits are up to $500,000 for the building and $500,000 for contents, most new policies wait 30 days, and NFIP doesn't cover business interruption. If you're near the Guadalupe, Comal or Blanco rivers or any creek, check your address on FEMA's flood map.
- Your lease. Look for required limits, additional insured status for the landlord, waiver of subrogation, and who insures the building and your improvements. Send it to us.
- Wind and hail deductibles. Many Texas property policies use a separate percentage deductible for wind and hail. Check your declarations page.
- Older buildings on the square in Boerne, Fredericksburg, Wimberley, San Marcos or New Braunfels. Construction, roof age and updates affect eligibility and price.
What affects BOP cost in Texas
- Type of business
- Building construction, age and roof
- Property and contents values
- Location and fire protection
- Sales and payroll
- Limits and deductibles, including wind and hail
- Claims history
The Insurance Information Institute says a BOP can be more cost effective than buying the same coverages separately. Whether it is for you depends on the quote.
What to send for a BOP quote
- What the business does, and the address
- Whether you own or lease the building, and square footage
- Year built and roof age
- Contents and inventory value
- Annual sales and number of employees
- Current declarations page and three to five years of loss runs
- The insurance section of your lease
We work with shops and offices in Canyon Lake, New Braunfels, Boerne, Wimberley, San Marcos, Bulverde, Spring Branch, Fredericksburg and across Texas. More: Texas commercial insurance, New Braunfels business insurance, Boerne, San Marcos, license and permit bonds and our coverage list.
Business owners policy FAQ
What is a business owners policy?
A business owners policy (BOP) packages three coverages small Texas businesses usually need: property insurance for your building, equipment and inventory; general liability for injuries and damage to others; and business income if a covered loss shuts you down. It's built for smaller, lower-risk shops and offices. Workers' comp, commercial auto and flood are separate.
What does a BOP cover?
A BOP covers three things. Property covers your building if you own it, plus contents, equipment and inventory. General liability covers injuries and damage your business causes to others. Business income replaces lost income and ongoing expenses after a covered loss closes you for a while. Extras like equipment breakdown are often added by endorsement.
What is the difference between a BOP and general liability?
General liability covers only claims that you injured someone or damaged their property. A business owners policy includes general liability plus property coverage for your space, equipment and inventory, and business income after a covered loss. A mobile or home-based service business may need only general liability. A shop or office with contents usually needs the BOP.
Does a business owners policy include workers' comp?
No. A business owners policy doesn't include workers' compensation. In Texas, most private employers can choose whether to carry comp, but your BOP's liability coverage won't pay for your own employees' work injuries either way. If you have employees, decide on workers' comp separately, and file with the state if you opt out.
Does a BOP cover flood in Texas?
No. Flood needs its own policy through the National Flood Insurance Program or a private flood insurer. FloodSmart says NFIP business coverage goes up to $500,000 for the building and $500,000 for contents, most new policies wait 30 days, and NFIP doesn't cover lost business income.
Who qualifies for a BOP?
Small and mid-size businesses in lower-hazard classes, such as offices, retail shops and many service businesses. The Insurance Information Institute says BOPs are normally for businesses with 100 or fewer employees and up to about $5 million in revenue. Each carrier sets its own rules, and restaurants may not qualify.
Does my landlord's insurance cover my business?
Generally not your contents, your liability or your lost income. A landlord's policy protects the landlord's interests. Your lease usually says what you must carry, including limits and naming the landlord as additional insured. Send us the lease's insurance section and we'll show you what it asks for. This isn't legal advice.
What affects BOP cost?
The main factors are your type of business, the building's construction, age and roof, property and contents values, location and fire protection, sales and payroll, the limits and deductibles you choose, including wind and hail, and your claims history. We compare carriers so you can see your options.
What is the difference between a BOP and a commercial package policy?
A BOP is a prepackaged policy for smaller, lower-risk businesses. A commercial package policy (CPP) combines the same kinds of coverage with more flexibility, and it's used when a business has larger property values, a higher-hazard class or several locations. It takes more underwriting but fits bigger or unusual risks.
Who quotes BOPs near Canyon Lake, New Braunfels and Boerne?
Allen Jones Insurance Agency is an independent insurance agency in Canyon Lake, Texas that quotes business owners policies for small shops, offices and storefronts across the Hill Country and Texas. It can shop more than one carrier and match limits to your lease. Text 830-305-4080 or send your lease's insurance section for a quote.
More BOP questions
Is a business owners policy required in Texas?
Usually a lease, lender or client requires it, not a state rule. Texas license rules that require insurance, like TDLR's for A/C and electrical contractors and the plumbing board's for responsible master plumbers, call for general liability, not a BOP by name. Texas doesn't require most private employers to carry workers' comp, either.
Does a business owners policy cover theft?
A BOP generally covers burglary of your business property. The Insurance Information Institute lists fire, burglary, liability and business interruption losses as covered under a BOP. Employee theft is different: the Texas Department of Insurance lists employee theft, forgery and money coverage under separate crime coverage, so ask about adding it.
Does a BOP cover professional liability (errors and omissions)?
No. A BOP's liability coverage is for bodily injury and property damage, not for mistakes in professional advice or services. The Insurance Information Institute lists professional liability as a separate coverage to ask about. Offices that give advice, such as accountants, consultants or designers, usually need a separate errors and omissions policy.
Does a BOP cover my business vehicles?
No. A business owners policy doesn't cover vehicles. The Insurance Information Institute says a business-owned vehicle needs coverage beyond personal car insurance, and the Texas Department of Insurance says most personal auto policies don't cover driving for business. Work trucks and vans go on a commercial auto policy, which we can quote for small trades.
Can a home-based business get a BOP?
Often, yes. The Texas Department of Insurance says a typical home policy may not cover business equipment, inventory or injuries to customers and employees, and suggests asking your agent about a business owner's policy. The SBA says BOPs suit most small businesses, especially home-based ones. Eligibility depends on what the business does.
Does a BOP cover equipment breakdown, like an A/C unit?
Not by default. The Texas Department of Insurance lists boiler and machinery coverage as an add-on for an extra cost, and says it covers boilers, air conditioning units, compressors, electric water heaters and similar machinery. A fire or storm that damages that equipment is a property claim; a mechanical breakdown needs this added coverage.
Does a BOP cover a customer who gets hurt at my shop?
Yes, that's the general liability part of a BOP. It covers claims that you injured someone or damaged their property, including legal defense. The SBA says general liability protects against losses from bodily injury, property damage, medical expenses and lawsuits. Your own employees' injuries are different: that's workers' compensation.
What a BOP pays when you can't open
What does business income coverage pay?
Business income coverage helps pay lost net income and ongoing costs like rent, loan payments, taxes and payroll while your business is closed after a covered loss. Triple-I says it usually starts after a 48- to 72-hour waiting period and doesn't cover flood, undocumented income or utilities. Check your period of restoration and limits.
Does a business owners policy cover a power outage?
Only sometimes. The Texas Department of Insurance says business interruption coverage pays when your business is damaged by a covered event, like a storm or fire, but some policies exclude power losses that weren't caused by a covered event. If an outage away from your property could close you, ask whether your policy covers it.
Does a BOP cover tools I take to job sites?
Usually not well. A BOP's property coverage is built around your premises. For tools and equipment that travel, the Texas Department of Insurance points to inland marine coverage, which covers contractor equipment, property in transit and property held for others. If you work at customers' sites, ask for a tools and equipment schedule. See contractor insurance in Texas.
Get a quote
Text 830-305-4080 with what your business does, your address and your lease's insurance section, or request a quote online. Allen follows up personally. A quote request is not a bind.
Allen Jones Insurance Agency · PO Box 1927, Canyon Lake, TX 78133 · ajones@
Licensed in Texas, Florida, Arizona and New Mexico. Coverage is subject to underwriting. General information, not legal advice.