---
title: "What Is a Businessowners Policy (BOP)? — Lapidar"
url: https://getlapidar.com/glossary/businessowners-policy/
description: "A BOP bundles property, liability and business income for small firms. How BOP commission shows on a statement, and what is not inside it."
last_modified: "Wed, 14 Oct 2026 06:20:12 GMT"
source: getlapidar.com (HTML converted to Markdown at the edge)
---

Glossary · Insurance agency commissions

# Businessowners policy (BOP)

A businessowners policy (BOP) is a package policy for small and mid-size businesses that combines property, liability and business interruption coverage under one premium, without workers’ compensation or commercial auto.

By Lapidar, the team building it · October 14, 2026 · Also called BOP; business owner’s policy; business owners policy

## What it means

The NAIC [glossary](https://content.naic.org/glossary-insurance-terms) defines a business owners policy as “business insurance typically for property, liability, and business interruption coverage.” Triple-I’s [guide to home-based businesses](https://www.iii.org/article/insuring-your-home-based-business) says a BOP was “created specifically for small-to-mid-size businesses” and covers “business property and equipment, loss of income, extra expense and liability.” Its [note on saving money](https://www.iii.org/article/how-can-i-save-money-on-my-business-insurance) calls it a package policy that “provides standard coverages and limits of liability.”

Larger or unusual risks that don’t fit a BOP usually go on a [commercial package policy](https://getlapidar.com/glossary/commercial-package-policy/) instead.

## How it shows on a commission statement

A BOP usually pays as one line per transaction, like a personal lines policy: new business, renewal, endorsements, cancellations. It is often direct billed on smaller accounts. Because property and liability share one premium, there is no separate rate per coverage to check, only the one the carrier pays for the BOP. Endorsements adding a location or equipment change the premium mid-term; our guide on [commission on mid-term endorsements](https://getlapidar.com/guides/commission-on-mid-term-endorsements/) covers the check. Some BOPs include liability rated on sales or payroll and are audited; see [commission on premium audits](https://getlapidar.com/guides/commission-on-premium-audits/).

## Example

**Example data: invented BOP lines on one statement.**

| Policy | Transaction | Premium | Rate | Commission |
| --- | --- | --- | --- | --- |
| EX-66301 | Renewal | 3,200.00 | 15% | 480.00 |
| EX-66301 | Endorsement (second location) | 640.00 | 12% | 76.80 |
| Total |  | 3,840.00 |  | 556.80 |

The endorsement was paid at a different rate from the policy it changes. That is worth a question unless your schedule says so. Commission rates on this page are invented; your agency agreement and commission schedule set the real ones.

## Common mistakes to check

- Looking for workers’ comp or commercial auto inside the BOP; they are separate policies with separate lines.
- Accepting a different rate on a BOP endorsement than on the policy without checking the schedule.
- Missing a BOP renewal because it rolled to a new policy number.

## Questions

### What does a BOP cover?

Property, liability and business interruption for small and mid-size businesses, in one policy. Workers’ comp and commercial auto are bought separately.

### How is commission paid on a BOP?

Usually as one line per transaction at the rate the carrier pays for the BOP, often on a direct bill statement. Check endorsement lines against the same rate.

### What is the difference between a BOP and a commercial package policy?

A BOP is a standard bundle for smaller businesses; a commercial package policy is built from separate coverage parts for businesses a BOP doesn’t fit.

## Sources

- National Association of Insurance Commissioners, [Glossary of Insurance Terms](https://content.naic.org/glossary-insurance-terms), entry for business owners policy. Retrieved October 14, 2026.
- Triple-I (Insurance Information Institute), [Insuring Your Home-based Business](https://www.iii.org/article/insuring-your-home-based-business). Retrieved October 14, 2026.
- Triple-I (Insurance Information Institute), [How can I save money on my business insurance?](https://www.iii.org/article/how-can-i-save-money-on-my-business-insurance) Retrieved October 14, 2026.

Lapidar is [commission reconciliation software for independent insurance agencies](https://getlapidar.com/), in its founding pilot. Related: [commercial package policy](https://getlapidar.com/glossary/commercial-package-policy/).

In this entry

1. [What it means](https://getlapidar.com/glossary/businessowners-policy/#meaning)
2. [On a commission statement](https://getlapidar.com/glossary/businessowners-policy/#on-statement)
3. [Example](https://getlapidar.com/glossary/businessowners-policy/#example)
4. [Common mistakes](https://getlapidar.com/glossary/businessowners-policy/#mistakes)
5. [Questions](https://getlapidar.com/glossary/businessowners-policy/#faq)
6. [Sources](https://getlapidar.com/glossary/businessowners-policy/#sources)

All 86 terms, from account current to written premium.

[Glossary A–Z](https://getlapidar.com/glossary/)

Check BOP endorsements against the rate on the policy.

[See a sample report](https://getlapidar.com/sample-report/)

## Reconciling statements is the hard part.

Check BOP endorsements against the rate on the policy. [See a sample report](https://getlapidar.com/sample-report/), or read [how the founding pilot works](https://getlapidar.com/pilot/).

[Open an account — founding pilot](https://app.getlapidar.com/signup)

[See a sample report](https://getlapidar.com/sample-report/)