In California’s growing installation industry, contractors and small businesses face a wide range of risks—from property damage and liability claims to employee injuries. Many installers, including appliance installers, security system technicians, and window and door contractors, rely on Business Owner’s Policy (BOP) insurance to safeguard their operations. This type of insurance bundles essential coverages into one cost-effective package, making it a smart choice for small and medium-sized installation businesses. But what exactly does a BOP cover, and is it the right fit for every installer in California?
A Business Owner’s Policy is a type of insurance package designed for small businesses. It typically combines three core protections:
General Liability Insurance – Protects against third-party claims such as property damage or bodily injury caused during installation work.
Commercial Property Insurance – Covers buildings, equipment, and tools if they are damaged by fire, theft, or other covered risks.
Business Interruption Insurance – Helps replace lost income if your installation business is temporarily unable to operate due to a covered event.
For installers in California, a BOP is attractive because it consolidates multiple coverages into one policy while often being more affordable than purchasing separate policies.
One of the biggest advantages of a BOP is affordability. Since it bundles multiple coverages, insurers often offer it at a lower premium compared to buying policies individually. For installers in California, where operational costs are already high, this is a significant benefit.
Installers face diverse risks—accidental damage to a customer’s property, theft of expensive tools, or even lawsuits from third-party injuries. A BOP ensures these core risks are covered without gaps that might leave the business exposed.
Instead of managing multiple policies with different renewal dates and terms, a BOP combines them into one package, making it easier for business owners to stay organised.
Though it comes as a package, a BOP can be tailored with add-ons like Workers’ Compensation, Commercial Auto, or Professional Liability Insurance, allowing installers to create a policy that suits their specific business model.
A BOP is generally designed for small to mid-sized businesses. If your installation company has high revenue, multiple job sites, or more than 100 employees, you may need more specialised coverage beyond what a standard BOP provides.
While a BOP covers liability, property, and business interruption, it doesn’t automatically include crucial coverages like Workers’ Compensation Insurance or Commercial Auto Insurance, which many California installers require.
Some insurers may have eligibility restrictions for BOPs based on business size, annual revenue, or industry classification. Certain high-risk installation services may not qualify for a BOP package.
If you’re installing refrigerators, ovens, or washing machines, a BOP can cover damage to a customer’s property if an appliance is accidentally damaged during installation, while also protecting your equipment against theft.
A BOP is ideal for businesses installing doors and windows, as it combines liability coverage for on-site damages with property protection for tools and materials stored in a workshop or warehouse.
For those installing alarms or CCTV systems, a BOP can provide liability coverage if damage occurs during wiring or drilling while also safeguarding high-value tools and electronic equipment.
As demand for electric vehicle charging stations rises in California, installers can use a BOP to protect against liability claims and cover losses if valuable equipment is stolen from a job site.
The cost of a Business Owner’s Policy in California varies depending on the size of the business, type of installation work, and annual revenue. On average:
Small installation businesses may pay between $800 – $1,500 annually.
Medium-sized contractors may see costs ranging from $1,500 – $3,000 annually.
Factors like the number of employees, claims history, and the types of projects undertaken can also influence premiums.
For most small and medium-sized installation businesses in California, a Business Owner’s Policy offers a balanced, cost-effective solution. It ensures protection against the most common risks while leaving room for additional coverage options tailored to your specific needs.
However, if your business is larger, handles high-value projects, or has specialised risks, you may need to supplement or replace a BOP with standalone insurance policies.
A Business Owner’s Policy (BOP) is a practical insurance solution for installers in California, offering a balance of affordability, protection, and convenience. Whether you specialise in appliance installations, glazing, door and window fitting, or EV charger setups, a BOP can safeguard your business against unexpected risks. By understanding its pros, cons, and use cases, installation businesses can make informed decisions about whether this package is the right fit.
For more details on tailored coverage options, visit Western Insurance