Business Owner’s Policy (BOP) in Connecticut
A business owner’s policy for Connecticut shops, offices and storefronts
A business owner’s policy, or BOP, is how most small Connecticut businesses should be insured, and most do not know it exists. It bundles general liability, property coverage for your contents and building, and business interruption into one policy, from one carrier, usually for less than the liability policy alone would cost from a company that does not want your property. The Beam Agency writes BOPs for retail shops, offices, salons, small restaurants and service businesses across Farmington, West Hartford and Hartford County.
Brandon spent years on the carrier side before opening the agency, and one of the things he learned is that the BOP is where the good carriers put their best small business pricing. If you qualify, it is almost always the right form.
What it covers
General liability
The same coverage you would buy on a standalone general liability policy: bodily injury, property damage, products and completed operations, personal and advertising injury, medical payments. Standard limits of $1 million per occurrence and $2 million aggregate. Additional insured endorsements for your landlord are available and usually inexpensive.
Business property
Your contents: inventory, furniture, fixtures, computers, equipment, tenant improvements you paid for. If you own the building, the building too. Most BOPs write this on a special form basis, which means it covers any cause of loss not specifically excluded, and many include theft, equipment breakdown and off-premises coverage at modest limits.
Business interruption
If a fire or a burst pipe closes the shop, the policy replaces the income you would have earned and keeps paying the rent and the payroll while you rebuild. This is the piece that saves businesses, and the piece most owners never think about until they are standing in a wet store in January.
The usual add-ons
Hired and non-owned auto for employees running errands in their own cars, employee dishonesty, spoilage for a food business, sign coverage, and data breach at a small limit. Each is a checkbox at quote time, and we will tell you which ones you need.
Who qualifies for a BOP
Carriers reserve the BOP for small, lower-hazard businesses. The typical profile:
- Retail stores, boutiques and specialty shops
- Professional and administrative offices
- Salons, barbers, spas and studios
- Small restaurants, cafes and bakeries with limited cooking exposure
- Small wholesalers and light service businesses
- Owners of small commercial buildings
Contractors, manufacturers, businesses with high revenue or large buildings, and anything the carrier considers hazardous are usually written on a commercial package policy instead. If you are a contractor, start with our contractor insurance page. If you run a full-service restaurant with a bar, the restaurant insurance page covers the liquor and cooking exposures a BOP does not handle well.
What is not in a BOP
A BOP is broad, but people assume it covers things it does not. Each of these is a separate policy:
- Commercial auto. Vehicles titled to the business, or any vehicle used regularly for work, need a commercial auto policy.
- Workers’ compensation. Required in Connecticut the moment you have an employee. Never part of a BOP. Workers’ comp in Farmington.
- Professional liability. A BOP covers the customer who slips in your office, not the advice you gave them. Consultants, designers, accountants and agents need professional liability.
- Cyber. Some BOPs include a small data breach limit, often $10,000 to $25,000. A ransomware event or a fraudulent wire transfer will exceed that quickly. See cyber insurance.
- Flood. Excluded like it is on a homeowners policy. Businesses along the Farmington River in Unionville learned this in August 2024.
- Liquor liability. Available on some BOPs for incidental sales, but a bar or restaurant needs a real liquor liability policy.
Sizing business interruption
This is the part of a BOP quote worth ten minutes of thought. Most policies pay actual loss sustained for up to twelve months, which is usually enough for a tenant to rebuild and reopen. Two things to check:
- How long would it really take? A salon in a strip plaza can reopen in a few months. A restaurant with a kitchen build-out and permits in Farmington or West Hartford may need a year or more. Extended period of indemnity adds time after reopening to rebuild sales.
- Would you keep paying staff? If you would rather keep your stylists or cooks than lose them to the place across the street, make sure ordinary payroll is included in the covered expenses.
What it costs in Connecticut
A BOP for a small office or a low-inventory shop in Connecticut often runs from several hundred to a couple of thousand dollars a year, with the property limit, location, building construction and any restaurant cooking exposure driving the number. That typically includes the $1 million/$2 million liability, so compared to buying liability and property separately it is usually a savings. We quote through Travelers and other A.M. Best-rated carriers and show you the differences in the property form, because they are not all the same.
Who this is for
A boutique on Farmington Avenue in West Hartford Center with $80,000 of inventory and a landlord who wants to be named as additional insured. A bakery in Unionville with ovens, a walk-in and a line out the door on Saturday. An accounting office in Plainville with six workstations and a server closet. A hair salon in Avon that just signed a five-year lease. If you are opening for the first time, the new business insurance page walks through what to buy in what order.
BOP questions
What does a business owner’s policy cover?
General liability, property coverage for your contents and building, and business interruption income, in one policy. Most also offer add-ons like hired and non-owned auto, employee dishonesty and equipment breakdown. It does not include workers’ comp, commercial auto, professional liability or full cyber coverage.
Is a BOP cheaper than buying general liability alone?
Often, yes. Carriers price the BOP aggressively for small, low-hazard businesses, and the property and business interruption coverage sometimes comes in for less than a standalone GL policy from a carrier that does not want the account.
Does a BOP cover my business vehicles?
No. A BOP can include hired and non-owned auto for employees driving their own cars on business, but vehicles owned by the business need a commercial auto policy.
Can a restaurant get a business owner’s policy in Connecticut?
Small restaurants, cafes and bakeries with limited cooking often can. Full-service restaurants with a bar, deep fryers and late hours are usually written on a package policy with separate liquor liability.
Independent agent, direct line
Talk to Brandon directly
One agent, multiple carriers, and a policy read line by line before you sign it.