BOP or standalone commercial property insurance: the short answer
The carrier descriptions in this guide's sources describe BOPs as packages, although their coverage lists differ. State Farm says its business owner's policy typically includes liability, property, loss-of-income, and equipment-breakdown protection. Progressive says its BOP combines liability and commercial property coverage for small to medium-sized businesses. Travelers says its BOP combines commercial general liability and property insurance for small businesses.[1][2][3]
Travelers describes commercial property insurance separately as protection for business property the insured owns, leases, or rents, including buildings, equipment, furniture, fixtures, inventory, and property of others in the business's care or custody. Review the proposal to determine which additional coverage parts, if any, are included.[4]
Related: Commercial property insurance guide
| Question | Business owner's policy | Commercial property insurance |
|---|---|---|
| What the label describes | A package that combines property coverage with liability coverage in the carrier descriptions for small businesses | Coverage for business property the insured owns, leases, or rents (Travelers) |
| Property named in the source | Buildings and business personal property (Progressive); owned, leased, or rented buildings and business property, plus property in the insured's care (Travelers) | Buildings, equipment, furniture, fixtures, inventory, and property of others in the business's care or custody (Travelers) |
| Liability | Described as part of the package by State Farm, Progressive, and Travelers | Travelers' commercial property page describes property; confirm on the proposal whether a liability part is included |
| Business income | State Farm lists loss of income; Progressive lists some business-income claims; Travelers lists business income and extra expense after a covered property loss | Texas Department of Insurance guidance lists business interruption and extra expense among coverages a buyer might need to add |
| Stated fit | Small to medium-sized businesses (Progressive); small businesses (Travelers); State Farm states that availability and eligibility vary | Travelers describes small-business commercial property for owned, leased, or rented business property |
Product descriptions from State Farm, Progressive Commercial, and Travelers, with Texas Department of Insurance consumer guidance on commercial property coverages.[1][2][3][4][5]
What a business owner's policy packages
A BOP is a package, not a fixed coverage list across carriers. Read each carrier's description as its own inventory because the three descriptions here name different coverage parts.[1][2][3]
- State Farm: a package that typically includes liability, property, loss-of-income, and equipment-breakdown protection.[1]
- Progressive: liability and commercial property coverage for small to medium-sized businesses, listing buildings, business personal property, some business-income claims, and general-liability claims.[2]
- Travelers: commercial general liability and property insurance, with a property portion that can include owned, leased, or rented buildings and business property, property in the insured's care, and business-income and extra-expense protection after a covered property loss.[3]
Progressive identifies workers' compensation as separate from its BOP and describes additional coverages as optional. Verify the coverage parts and options in the specific Progressive proposal.[2]
Travelers describes business-income and extra-expense protection after a covered property loss. Review the covered causes of loss as well as the income limit.[3]
Coverage questions in this guide
A shared record keeps related coverage questions in one place.
- Buildings and business personal property
Progressive's BOP lists buildings and business personal property. Travelers' BOP property portion can include owned, leased, or rented buildings and business property, and Travelers' commercial property description covers buildings, equipment, furniture, fixtures, and inventory.[2][3][4]
Review: Confirm the stated limit for the building and for business personal property on each proposal.
- General liability
State Farm, Progressive, and Travelers each describe liability coverage as part of their BOP. Texas Department of Insurance guidance on commercial property insurance does not state that premises liability automatically belongs to a property policy.[1][2][3][5]
Review: Ask whether the proposal includes a general liability part and at what limits.
- Business income and extra expense
State Farm lists loss-of-income protection in its BOP and Progressive lists some business-income claims. Travelers describes business-income and extra-expense protection after a covered property loss. Texas guidance treats business interruption and extra expense as coverages a commercial property buyer might need to add.[1][2][3][5]
Review: Check whether income coverage is present, what triggers it, and how the limit is set.
- Equipment breakdown
State Farm describes equipment-breakdown protection as typically included in its BOP. Texas guidance lists equipment breakdown among the other coverages a commercial property buyer might need.[1][5]
Review: Verify whether equipment breakdown is included or must be added, and what equipment it reaches.
- Property of others in your care
Travelers names property in the insured's care within its BOP property portion, and property of others in the business's care or custody within its commercial property description.[3][4]
Review: List customer or consigned property values separately so the limit is set on purpose.
- Workers' compensation
Progressive identifies workers' compensation as separate from its business owners policy.[2]
Review: Verify whether workers' compensation is separate for each proposal rather than assuming every BOP handles it the same way.
What standalone commercial property insurance addresses
Travelers describes commercial property insurance as protecting business property the insured owns, leases, or rents. The description includes buildings, equipment, furniture, fixtures, inventory, and property of others in the business's care or custody. A tenant can identify its business personal property or other property it owns, leases, or rents when discussing a quote.[4]
Related: Business personal property coverage
- Buildings the insured owns, leases, or rents.[4]
- Equipment, furniture, and fixtures.[4]
- Inventory.[4]
- Property of others in the business's care or custody, which Travelers also names in the property portion of its BOP.[4][3]
Texas Department of Insurance guidance for commercial property shoppers addresses causes-of-loss forms, replacement cost versus actual cash value, deductibles and coinsurance, and separate additions such as business interruption, extra expense, ordinance or law, and equipment breakdown. Use those terms to compare the property coverage in each proposal.[5]
Texas guidance on commercial property insurance does not state that premises liability automatically belongs to a property policy, and Travelers' commercial property page describes property rather than liability. If a proposal is labeled commercial property, ask the carrier in writing whether a general liability part is attached and at what limits.[5][4]
Eligibility can decide the comparison before price does
Carriers describe who their BOP is built for. Progressive positions its BOP for small to medium-sized businesses. Travelers positions its BOP for small businesses. State Farm states that availability and eligibility vary.[2][3][1]
Do not treat a product-page description as an eligibility decision for your account. Ask each carrier to assess the business's class, size, revenue, location, and requested coverage limits. Progressive and State Farm both identify quote information they request for their own BOP processes.[6][1]
- Your industry and the actual operations at the location, which Progressive's business insurance intake asks for.[6]
- The building itself: age, square footage, construction type, protective features, and other occupants at the address.[6]
- Employee count and claims history.[6]
- The coverage amounts, deductibles, protective devices, and description of business activities that State Farm asks for on a BOP quote.[1]
Compare the property terms inside either option
Texas Department of Insurance guidance for commercial property shoppers outlines terms that can be used to compare the property coverage in two proposals side by side.[5]
| Term | What it decides | Ask on both proposals |
|---|---|---|
| Causes-of-loss form | Which causes of loss the property coverage addresses | Which causes-of-loss form applies, and which exclusions come with it |
| Replacement cost vs. actual cash value | How a covered loss is valued | Which valuation applies to the building and to business personal property |
| Deductible | The amount applied before coverage responds to a covered loss | The deductible amount and whether it differs by coverage |
| Coinsurance | How the stated limit is measured against value | The coinsurance percentage and the values it is measured against |
| Coverages you might add | Whether additional income-loss and related coverage is addressed | Business interruption, extra expense, ordinance or law, and equipment breakdown |
Texas Department of Insurance consumer guidance on commercial property insurance, which summarizes common coverages in Texas.[5]
Prepare one fact set for both quote paths
Prepare a fact set before seeking either type of proposal. Progressive's business insurance quote guidance asks a BOP applicant for its location, industry and operations, owner experience, building age, square footage, construction type, protective features, other occupants, mortgage information, coverage needs, number of employees, and claims history.[6]
- Location, industry and operations, and owner experience.[6]
- Building age, square footage, construction type, protective features, other occupants, and mortgage information.[6]
- Number of employees and claims history.[6]
- Coverage amounts, deductibles, protective devices, and a description of business activities, which State Farm asks for on a BOP quote.[1]
- The property terms you want quoted consistently: causes-of-loss form, replacement cost or actual cash value, deductible, coinsurance, and any of business interruption, extra expense, ordinance or law, or equipment breakdown.[5]
- For a Progressive BOP proposal, verify whether workers' compensation is separate, because Progressive identifies it as separate from its BOP.[2]
Property Covered is a property insurance marketplace operated by Switchboard Risk Technologies Inc., a licensed insurance producer. The marketplace has access to more than 400 carriers and market options. Carriers make final eligibility, pricing, binding, policy, and claims decisions.
A Property Covered quote request is free, carries no purchase obligation, and records your details for licensed follow-up. Licensed support is available by phone at (888) 693-8980. Ask licensed support which property options may be available for the specific risk and whether a BOP market can be considered.
Related: Start a quote request
Sources
- 1.State Farm, Business Owner's Policy (BOP) Insurance
- 2.Progressive Commercial, Business Owners Policy
- 3.Travelers, Business Owner's Policy (BOP Insurance)
- 4.Travelers, Commercial Property Insurance
- 5.Texas Department of Insurance, Commercial property insurance guide
- 6.Progressive Commercial, Getting a Business Insurance Quote
Common questions
They are not the same label in these carrier descriptions. State Farm, Progressive, and Travelers describe their BOPs as combining property coverage with liability coverage for small businesses. Travelers describes commercial property insurance as covering business property the insured owns, leases, or rents, including buildings, equipment, furniture, fixtures, inventory, and property of others in the business's care or custody. [1][2][3][4]
The phrase alone does not establish it. Travelers' commercial property page describes property, and Texas Department of Insurance guidance on commercial property insurance does not state that premises liability automatically belongs to a property policy. Ask the carrier whether a liability part is attached to the specific proposal and what its limits are. [4][5]
Each carrier states it differently. State Farm lists loss-of-income protection in its BOP, Progressive lists some business-income claims, and Travelers describes business-income and extra-expense protection after a covered property loss. Review the causes-of-loss terms alongside the income limit. [1][2][3]
Progressive identifies workers' compensation as separate from its business owners policy and treats additional coverages as optional. Verify how workers' compensation is handled in each carrier's specific proposal. [2]
That is a carrier-by-carrier answer. Progressive positions its BOP for small to medium-sized businesses, Travelers positions its BOP for small businesses, and State Farm states that availability and eligibility vary. Confirm your class, operations, location, revenue, and requested limits with each carrier rather than applying one product page to the market. [2][3][1]
Progressive's quote guidance asks a BOP applicant for location, industry and operations, owner experience, building age, square footage, construction type, protective features, other occupants, mortgage information, coverage needs, employee count, and claims history. Another carrier or a more complex account may ask for different information, and supplying these facts does not guarantee eligibility or a quote. [6]
Continue your research