Business owner's policy (BOP)
A business owner's policy bundles general liability and commercial property insurance for a business's own operations — its office, equipment, and employees — into one policy. It covers the property management company, not the rental properties it manages.
By Andrew Bate, Co-founderReviewed by Stuart BateUpdated
Why this matters for property managers
Managers often assume a BOP covers guest incidents at managed homes. It does not. A BOP is company-level coverage; guest liability and property damage at the homes need program coverage that follows the portfolio. Knowing which policy answers which risk prevents an uncovered claim.
What a BOP covers for a property management company, and what it leaves out
For a management company the BOP is the company layer: general liability for the business, commercial property for the office and its equipment, and business income if the office is closed by a covered loss. It does not cover the homes in the portfolio, guest injuries at those homes, employee injuries, or professional liability. Those come from the damage program, per-property liability, workers' compensation and an E&O policy respectively. A BOP is the right way to buy the company layer once you have an office or a commercial lease; it is not a substitute for portfolio coverage.
Related terms
Browse every term in the insurance glossary for property managers.
Business owner's policy (BOP): common questions
Does a property manager need a BOP?
Most do, once they have an office, staff, or equipment. It is the simplest way to carry general liability and property coverage for the business itself.
Can a BOP include E&O?
Rarely by default. Errors and omissions coverage is typically a separate policy or endorsement for property managers.
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