A Business Owner's Policy (BOP) for Houston Small Businesses: What's Covered?

Many small business owners in Houston think a general liability policy is all they need. While it's a start, a Business Owner's Policy, or BOP, often provides more complete protection by bundling key coverages into a single, more affordable package.

What a BOP Actually Is

A BOP is not a single type of insurance. It's a package that combines three core coverages most small businesses need: general liability, commercial property, and business income. Buying them together is typically more cost-effective than purchasing each policy separately. It simplifies your coverage into one policy and one bill.

This policy is designed for small to medium-sized businesses in lower-risk industries. Think retail shops, small offices, or local artisans here in Houston. A contractor or a high-risk manufacturer will usually need a more customized set of policies.

Core Coverage: General Liability

This is the foundation of the BOP. General liability covers your business if it's found legally responsible for bodily injury to a third party or damage to their property. This covers incidents that happen on your premises or as a result of your business operations.

• A customer slips on a wet floor in your Montrose boutique and breaks their arm.
• Your employee accidentally damages a client's server while making a delivery in the Galleria area.
• You're sued for personal and advertising injury, like libel or slander, because of something in your marketing.

Without this coverage, you would be paying for legal defense and any settlement or judgment out of pocket.

Core Coverage: Commercial Property

This part of the policy protects the physical assets of your business. It covers the cost to repair or replace your owned or leased property if it’s damaged by a fire, storm, theft, or other covered event.

Think about all the things you need to operate:

• The building you own, or business personal property if you lease a space.
• Your inventory, raw materials, and supplies.
• Your furniture, computers, and specialized equipment.
• Exterior signs, fences, and landscaping.

In Texas, a severe hailstorm can destroy a roof and signage. A break-in is a constant risk anywhere. Property coverage ensures one bad day doesn't permanently close your doors.

Core Coverage: Business Income

This is one of the most critical and often misunderstood coverages included in a BOP. If a covered property loss, like a fire, forces you to temporarily shut down, business income coverage helps replace lost net income and covers ongoing expenses.

For example, if a kitchen fire at your restaurant in The Heights means you have to close for months of repairs, this coverage could help pay for:

• Rent or mortgage payments.
• Employee payroll to keep your team.
• Taxes and loan payments.
• Extra expenses, like the cost of operating from a temporary location.

It provides the cash flow needed to survive a shutdown that would otherwise be financially devastating.

What Isn't Covered?

A BOP is comprehensive, but it doesn't cover everything. It’s important to understand the typical exclusions so you can address any gaps.

• Professional Liability (Errors & Omissions)
• Commercial Auto
• Workers' Compensation
• Flood Damage
• Cyber Liability

These almost always require separate policies. An architect, for instance, would need a Professional Liability policy in addition to a BOP. A business with a delivery van needs a separate Commercial Auto policy.

A Business Owner's Policy is an efficient and effective way for many Houston businesses to secure fundamental protection. The best way to know if it's right for you is to review your specific operation with an agent. If you'd like us to take a look, give us a call.