How Small Businesses Can Become a Better BOP Risk

• By: Olivia Overman
• November 9, 2026

A business owners policy (BOP) remains one of the most valuable tools a business owner has in their insurance toolbox.

“Coverage typically bundles three foundational coverages: commercial property, general liability and business income,” says Tara Sites, vice president of small commercial product, Liberty Mutual. “These coverages address some of the most common risks a small business faces, such as property damage, customer injuries and lost income following a covered loss.” 

However, an agent’s expertise becomes especially valuable when addressing exposures that typically fall outside standard BOP coverage, according to Chris Jones, head of small business, The Hartford. Some of these risks include:

• Cyber risk. Cyberattacks, ransomware, data breaches and related cyber incidents often require specialized cyber coverage or endorsements.
• Professional liability. Businesses that provide advice, expertise, consulting, design services or other professional services may require professional liability or errors and omissions coverage.
• Workers compensation. Employee injuries, medical costs and lost wages resulting from workplace accidents generally require separate workers comp insurance.
• Commercial auto. Vehicle-related losses are typically not covered by a BOP and generally require commercial auto insurance.
• Flood and earthquake. Catastrophic exposures such as flood and earthquake are generally excluded from a standard BOP and may require separate policies or specialized coverage.

By bundling coverages agents can help their clients minimize coverage gaps. “Bringing umbrella, workers compensation and other lines together under a cohesive program gives customers a clearer picture of their total protection,” says Nicola Taddei, vice president, select product management, Travelers.

As business owners navigate changing risks, agents are uniquely positioned to help their clients reduce their exposures and become a better risk. By helping clients adopt strong risk management practices, agents can improve a client’s insurability and business resilience.

“Businesses that are considered a 5-star risk demonstrate strong risk management and exhibit the following traits: they keep their properties well maintained, document safety programs, have strong hiring practices, invest in employee training, implement cybersecurity controls and ensure protective systems such as central station alarms and sprinkler systems remain operational,” says Kim Harris, commercial manager, Risk Placement Services (RPS). “A 5-star risk also demonstrates management engagement.”

Additionally, “business owners who proactively implement recommendations, maintain detailed records and communicate operational changes to their agent are viewed more favorably by their underwriters—a 5-star risk is supported by a 5-star submission,” she says.

From the underwriters’ perspective “businesses that stand out are investing in prevention, using technology responsibly, maintaining strong safety practices and regularly reviewing their insurance coverage as their operations evolve,” Jones says. “Those actions can help reduce losses, strengthen resilience and ultimately make them more attractive risks from an underwriting perspective.”

As businesses change and grow, agents also play an important role in ensuring coverage values remain accurate and up to date. also play an important role in ensuring coverage values remain accurate and up to date.

“Don’t forget to review limits and values to make sure that they’re current,” Taddei says. “A BOP purchased five years ago may have property values that no longer reflect today’s replacement costs.”

Additionally, agents can help clients ensure their property coverage remains aligned with the realities of their business. “Make sure property coverage reflects actual exposure,” Taddei says. “Check for underinsurance but also right-size coverage so customers aren’t paying for things they don’t need.”

Regular coverage reviews are becoming increasingly important as small businesses evolve. Whether adopting new technology, adding services or finding new ways to serve customers, “regular reviews of coverage, limits and exposures can help ensure a policy continues to reflect the business as it exists today,” Site says.

“The good news is that many insurers have evolved how coverage is offered, building in far more flexibility so customers can get the exact coverage and limits they need at the right price,” Sites says. 

The result is a BOP that more accurately reflects current operations, along with a stronger risk profile that can make a business more attractive to insurers.

Olivia Overman is IA content editor.