Business Owners Policy (BOP) — Minnesota

One policy. The coverage
your small business actually needs.

A BOP bundles general liability, commercial property, and business interruption into one package — simpler to manage, easier to understand, and typically less expensive than buying each coverage separately. For most Minnesota small businesses, it’s the right starting point.

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One policy, one premium, one renewal date

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Typically 10–20% less than buying separately

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Local agency — Chaska, MN since 2011

You didn’t start your business to become an insurance expert.

Most small business owners have a patchwork of policies they bought at different times, from different sources, without a clear picture of what’s actually covered — or what’s missing.

A BOP solves that. Three essential coverages, one policy:

General Liability — when your business injures someone or damages their property
Commercial Property — your equipment, inventory, and improvements
Business Interruption — lost income if a covered event forces you to close

Think of a BOP like bundling your home and auto insurance — same idea, applied to your business. One underwriter, one bill, coverages designed to work together.

What a BOP doesn’t include

Workers’ compensation — required separately
Commercial auto — for business-owned vehicles
Professional liability — for professional advice errors
Cyber liability — for data breach events

What’s Included

Three coverages that work together

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General Liability

Protects you when your business causes injury or property damage to others. A customer slips on a wet floor. Your employee damages a client’s property on a service call. Someone claims your advertising copied their material. GL pays medical costs, property repairs, legal defense, and judgments.

Standard limits: $1M per occurrence / $2M aggregate. Required by most landlords and clients.

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Commercial Property

Covers your physical assets — equipment, furniture, computers, inventory, signage, and tenant improvements — from fire, theft, windstorm, vandalism, and burst pipes. For owned buildings, covers the structure too. Choose replacement cost to get new-for-old at claim time.

Minnesota-specific: confirm coverage for snow load, ice dams, and frozen pipes.

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Business Interruption

Replaces lost income when a covered property loss forces you to close or reduce operations. Pays your lost net income, continuing fixed expenses (rent, utilities, loan payments), and key employee wages during the closure period.

Make sure your coverage period reflects realistic repair timelines — Minnesota weather can delay construction.

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Equipment Breakdown

Covers repair or replacement when equipment fails due to mechanical or electrical breakdown — HVAC, refrigeration, computers, production equipment. Standard property covers fire and theft; breakdown covers the motor that just stops working.

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Spoilage Coverage

For businesses with perishable inventory — restaurants, florists, food retailers — covers losses when refrigeration fails or power goes out. Often included automatically in BOPs for food service businesses.

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Hired & Non-Owned Auto

Covers liability when employees drive their personal vehicles for work or when you rent vehicles for business use. Important for any business where employees run errands, make deliveries, or visit clients in their own cars.

Is a BOP Right for You?

BOPs work well for most small businesses — but not all

BOP vs. Standalone Policies

The right structure depends on how complex your exposures are.

✓ BOP Works Well For

Retail stores, restaurants, offices, salons, service businesses, light manufacturers, and professional service firms with standard risk profiles. Revenue typically under $1–3M.

Simpler to manage. Often 10–20% less expensive. Coverages designed to work together without gaps.

⚠ May Need More Than a BOP

Contractors with significant completed operations exposure. Large fleets needing commercial auto. High-revenue businesses over BOP limits. Significant professional liability needs.

A commercial package policy (CPP) offers higher limits and more customization for complex operations.

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Minnesota BOP Insurance Checklist

Evaluate whether a BOP fits your business, identify what’s included and what needs to be added, and prepare for your quote.

Download Free Checklist →

Quick Rate Estimate

What does a BOP cost for your business?

Answer four questions to get a realistic range for your specific business type and size.

Our Process

Three steps to the right BOP

Tell Us About Your Business

We ask about your operations, property, revenue, and any special risks. This helps us understand what coverage you need and whether a BOP is the right fit or if you need additional policies.

We Compare Options

As an independent agency, we work with multiple carriers offering BOPs. We compare coverage and pricing — not just the cheapest option, but the right combination of coverage, limits, and value for your specific business.

We Fill the Gaps

If a BOP doesn’t cover everything you need — workers’ comp, professional liability, cyber, commercial auto — we recommend the additional policies to complete your program. One conversation, complete coverage.

Frequently Asked Questions

What business owners ask about BOPs

General liability is one coverage — it protects you when your business injures someone or damages their property. A BOP includes general liability plus commercial property and business interruption. If you need both liability and property coverage (most businesses do), a BOP bundles them at lower total cost than buying separately.

Not for workplace injuries — you need a separate workers compensation policy for that. Minnesota requires workers comp from your first employee. The general liability in a BOP covers injuries your employees cause to others — not injuries to the employees themselves.

Usually yes — often 10–20% less. Insurers offer the discount because bundled policies are more efficient to administer. For most small businesses with straightforward risks, a BOP provides better value than three separate policies.

BOPs typically cap around $1–3 million in annual revenue and have property limits that may not cover larger operations. When you outgrow a BOP, we transition you to a commercial package policy (CPP) that offers higher limits and more customization. We review coverage annually to stay ahead of this.

No. Flood damage is excluded from BOPs and all standard commercial property policies. If your business is in a flood-prone area or near water, separate flood insurance is available through the NFIP or private carriers. Minnesota spring snowmelt creates flooding risk in unexpected areas.

Yes. Most BOPs allow endorsements — equipment breakdown, spoilage for perishables, hired and non-owned auto, data breach coverage, and others. The base BOP covers the essentials; endorsements fill the gaps specific to your business type.

Related Industry Pages

A BOP is the foundation for many of these industry programs:

Restaurants Bakeries Beauty Salons Accounting Firms IT & Technology Advertising Agencies Schools & Tutoring Real Estate Offices

Get Your Quote

One policy. Complete protection.

Tell us about your business and we’ll find the right BOP — and identify anything else you need to be fully covered.

We shop multiple BOP carriers
We identify gaps and fill them
Certificates issued same-day
Annual reviews at no extra cost
Someone who picks up the phone

Start your free quote

Fill out the form and an agent will be in touch within one business day.

The right BOP isn’t the cheapest one — it’s the one that actually covers your business.

Online quotes don’t ask the right questions. They won’t notice that your BOP doesn’t cover your specialized equipment, or that your business interruption limit is based on last year’s revenue before you grew.

Featured Agent

Dane Roti

Commercial Lines Agent

I build BOP programs for Minnesota small businesses across industries — from single-location retailers to multi-location service businesses. The conversation always starts with what the business actually does and what would happen if a fire or lawsuit shut it down tomorrow. From there, the right coverage structure becomes clear. I also make sure you have everything else you need — workers comp, commercial auto, professional liability — so nothing falls through the cracks.

(952) 392-9508 dane@options-insurance.com options-insurance.com

👥 Meet the full Options Insurance team →

One policy. The coverageyour small business actually needs.