A good starting package, as long as you know what it leaves out.
A BOP bundles general liability and commercial property into one efficient policy, and for a smaller contractor with a shop it is often the right foundation. Two things get contractors into trouble with it. Not every trade is eligible, and the property section is tied to your premises, which means the tools in your van are usually not covered by it. We are independent and based in Eugene, so we tell you when a BOP fits and when it does not.
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The BOP property section is tied to a described premises. Contractor tools spend their working life somewhere else, in a van or on a job site, so they generally fall to inland marine rather than the BOP. Assuming the bundled property limit covers the van is one of the most common and expensive misreadings of this policy.
What the bundle actually is
A BOP packages general liability with commercial property and typically adds business interruption. It is a standardised product, which is exactly why it is efficient: the carrier is not pricing a bespoke programme, so those who fit the box generally pay less than they would assembling the same coverage separately.
Business interruption is the underrated piece. If a fire closes your shop, it is intended to replace income during restoration. How valuable that is depends on your operation, since a contractor working mostly at customer sites may not stop earning when the premises does.
Which contractors are eligible
Eligibility is the first question, not the price. It varies by carrier and turns on trade, hazard, payroll and revenue. Lower-hazard trades with a modest shop are frequently eligible.
Roofing, excavation, tree work, and most trades working at height or depth are commonly declined and belong on a package or monoline programme. That is not a judgement on the business, it is the carrier's hazard appetite. It is worth checking rather than assuming, in both directions: contractors who assume they cannot get one sometimes can, and vice versa.
What it does not include
This is where the BOP's simplicity becomes a risk, because the bundle sounds comprehensive. Workers compensation is always separate. Commercial auto is separate. Tools and equipment away from the premises need their own inland marine coverage. Professional liability and pollution are not in it.
A BOP is a foundation for a small contractor, not a complete programme. The failure is rarely the BOP itself; it is treating the bundle as the whole answer and discovering the missing lines during a claim.
BOP or package, and when to switch
A package policy assembles similar coverages with far more control over limits, endorsements, and which lines are included. The BOP trades that flexibility for efficiency.
The signals that you have outgrown it are consistent: payroll and revenue rise past the eligibility box, work moves higher-hazard, contracts start demanding limits or endorsements the BOP will not carry, or equipment and inventory outgrow the property limits. Moving from a BOP to a package as the business scales is a normal progression, not a sign anything went wrong.
Questions worth asking before you sign
Ask whether your trade is genuinely eligible or whether it is being written on an exception. Ask what the property limit covers and, specifically, whether anything is covered away from the premises. Ask what is not included, and confirm auto, workers comp and equipment are handled elsewhere. Ask whether your contracts require endorsements the BOP cannot add. If the quote is attractive mainly because it is cheaper, compare coverage-for-coverage before deciding.
Trades that need business owner's policy
How this coverage applies changes with the work. These are the trades where it does the most, each with the exposure spelled out for that trade.
Handyman
Small operation, a modest shop or garage, and the profile a BOP was designed around.
Handyman insurance →Painters
A shop holding materials and sprayers, where property and liability fit together neatly.
Painter insurance →Flooring Contractors
Warehoused stock and a showroom are property exposures a standalone GL leaves out.
Flooring insurance →Landscaping
A yard with equipment and materials, though the equipment usually needs its own line alongside.
Landscaping insurance →Electricians
A shop with stock and benches, typically outgrowing a BOP as payroll and contracts scale.
Electrician insurance →Plumbers
Shop, parts inventory, and service vans, a common BOP profile until the operation gets larger.
Plumber insurance →Requirements change at the state line
Licensing, bonds, and workers comp rules vary by state, and so do the limits contracts ask for. Pick yours.
Go deeper in the Learning Center
Plain-language articles on how this coverage behaves in a real claim.
Contractor BOP questions
What is a business owner's policy?
Can contractors get a BOP?
What does a BOP not cover for a contractor?
Is a BOP cheaper than buying the coverages separately?
When should I move off a BOP?
What is the difference between a BOP and a package policy?
Does a BOP include business interruption?
Are my tools covered under the BOP property section?
Reviewed for insurance accuracy by Richard Sweet, Vantage Point Risk. Last reviewed July 20, 2026. How we review this.
Does the bundle actually cover your vans?
The BOP property section stops at your premises. We check what is genuinely covered and what needs its own line.
Use the bundle where it fits, and not where it does not.
Tell us your trade, your shop, and your contracts, and we will tell you honestly whether a BOP is the right foundation or the wrong shape.