Business Owner’s Policy (BOP) services in CA

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP) for Installation Businesses

A Business Owner’s Policy, commonly shortened to BOP, bundles essential coverages into a single, streamlined insurance package. For installation businesses, a BOP typically combines general liability protection with commercial property and business income coverage. Instead of purchasing separate policies for liability and property, many contractors choose a BOP to simplify and reduce costs.

When your installation business owns or leases a workspace, stores tools or inventory, or has physical assets exposed to risk, the property portion of a BOP becomes especially valuable. It can help you replace damaged equipment, repair your building, and recover income lost when operations are interrupted. Also, the liability component handles claims if a third party suffers bodily injury or property damage related to your work.

It’s important to note that a BOP is not one-size-fits-all. Insurers often allow you to customize your policy via endorsements—adding or removing coverage based on your installation niche (flooring, solar, EV chargers, etc.). Some enhancements might include inland marine (for tools in transit), extra liability limits, or loss of income cover.

Key Coverage Components & Limitations

Under a BOP, the liability portion handles risks such as bodily injury, property damage, and advertising injury (like libel or slander). If a client slips during your installation or your work inadvertently damages a neighbor’s wall, that portion of the policy works to defend you or settle claims.

The property portion covers your business-owned or leased assets: your workspace (if applicable), tools, equipment, inventory, and supplies. It may also include damages from covered perils like fire, wind, vandalism, or theft. Business income and extra expense coverage often complement this, helping you manage operating costs and lost revenue during downtime.

However, a BOP has clear exclusions. It generally does not cover employee injuries (that requires workers’ compensation), professional errors, auto liability, or flood/earthquake damage unless specifically added. Also, tools in transit between job sites are often excluded unless an endorsement (or separate tools/equipment coverage) is added.

Choosing the Right BOP & Best Practices

When selecting a BOP, evaluate your installation business’s specific needs—what trades you perform, how many employees you have, and what value your tools and workspaces represent. For example, a solar or EV charger installer carrying high-value equipment might need more property limits than a basic flooring contractor.

Set your coverage limits thoughtfully. Many installation businesses start with $1 million per occurrence / $2 million aggregate liability limits, plus property limits appropriate for your assets. As your business scales, adjust those limits and consider adding endorsements or umbrella liability policies.

To control cost, insurers often prefer businesses that have safety programs, documented maintenance, security systems, and a good claims history. Bundling your liability and property into one BOP often results in lower overall premiums compared to purchasing those coverages separately.