Simplify business with a Business Owners Policy (BOP)

Create a combination of coverages to help protect your unique business.

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What is a Business Owners Policy?

A Business Owners Policy (BOP) bundles two essential coverages: general liability and property insurance. This affordable insurance package protects you against the unexpected risks of doing business. It’s a great choice for small- to medium-sized businesses, such as hair salons, florists, landlords, photographers and more.

It's good to know that:

  • A BOP can easily be customized to match the unique needs of your business.

  • Equipment breakdown, loss of income, money and securities protection and more are included at no additional charge.

  • Business owners insurance from State Farm® is affordably priced based on the type of business you own, the value of your property, you as the owner and other factors.

What does a Business Owners Policy cover?

Business owners insurance is designed to protect you against a broad range of risks. The coverages typically included in a BOP are:

  • General Liability: This protects you against costly claims and lawsuits resulting from a customer being injured while at your business – and if you damage other people’s property.

  • Property Insurance: If buildings and other structures you own are damaged or destroyed, you’re covered. It also protects your office equipment, business equipment and inventory from a covered loss.

  • Loss of Income: In the event your business is shut down (for up to 12 months), this coverage protects your income and provides help for ordinary payroll expenses.

  • Equipment Breakdown: When your covered equipment breaks down or is damaged by covered claims, we’ll help pay to get things back up and running.

  • Professional Liability: Unfortunately, you could be sued as a result of the services you provide to your customers. For specific occupations, this coverage can be added for protection against costly claims and lawsuits.

Consider adding additional coverages

No two businesses are the same. Depending on the type of business you own, the number of employees you have, and other factors, what’s covered in the typical Business Owners Policy may not be enough. That’s why we offer a wide range of coverage options that can be custom fit to your needs.

Commercial auto

Commercial auto covers the cars, trucks, vans, and other vehicles used for business. If you have multiple vehicles, talk to a local agent about available options.

Workers' compensation

Workers’ compensation protects your crew against work-related injuries or illness. Requirements for workers’ comp vary by state.

Commercial liability umbrella policy

Commercial liability umbrella policy (CLUP) gives you an added measure of protection when your covered liability losses exceed your policy limits.

Tips for buying business owners insurance

Business owners insurance is designed to protect you against a broad range of risks. The coverages typically included in a BOP are:

  • Assess your risks. Think about what kind of accidents, natural disasters, or lawsuits could damage your business. What business property do you own (for example, inventory, equipment or buildings) that could be at risk?

  • Work with an agent. State Farm agents are business owners too. They understand the unique needs of small business owners.

  • Re-evaluate every year. As your business grows, so do your potential risks. Check in with your local agent to make sure you have the proper coverage.

See the 300+ professions we insure.

Do I really need business owners insurance?

Well, did you know the average bodily injury or property damage claim could cost your business tens of thousands of dollars, or more? Could you afford to pay these costs out of pocket? What about fires, extreme weather events, theft and other mishaps, which could also put you out of business if you don’t have the proper coverage?

Like a good neighbor, your local agent can help you create a plan that meets your needs at a price that fits your budget.

Rated “the best overall” insurance company for small business

We’re not ones to brag (okay maybe a little), but Investopedia recognized State Farm insurance as the top choice for small businesses 1 like yours. Here’s why:

Agent know-how

Our agents are business owners too. They understand the unique needs of small business owners.


Customizable insurance

We offer an array of coverage options that can be combined into one affordable policy.


Exceptional service

Since 1935, we’ve been here to help small business.

Talk to a local State Farm agent

This is only a general description of coverages of the available types of business insurance and is not a statement of contract. Details of coverage, limits, or services may not be available for all business and vary in some states. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements. Contact a State Farm agent for more information and a customized quote.

State Farm (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates) is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites hyperlinked from this page. State Farm has no discretion to alter, update, or control the content on the hyperlinked, third party site. Access to third party sites is at the user's own risk, is being provided for informational purposes only and is not a solicitation to buy or sell any of the products which may be referenced on such third party sites.

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