Comparison
Business Owner's Policy (BOP) vs. Workers' Comp
A business owner's policy (BOP) bundles general liability and commercial property coverage for small businesses, but it does not include workers' compensation. The two are meant to work together: a BOP protects the business and third parties, while a separate workers' comp policy protects employees.
A business owner's policy packages two coverages that most small businesses need together -- general liability and commercial property -- into a single, typically more affordable policy, often with options like business income coverage added on. It's designed around the everyday risks of running a location-based business: a customer injury, fire or storm damage to the building or contents, and lost income if the business has to close temporarily after a covered loss.
Workers' compensation is not part of a BOP and cannot be added as an endorsement to one; it is always a separate policy, priced and regulated under each state's specific workers' comp statute. This is true across the industry, not specific to any one carrier, because workers' comp involves a different regulatory framework than general liability and property coverage. A business with employees typically needs both a BOP (or equivalent liability and property coverage) and a standalone workers' comp policy, and an agency can often coordinate the two even though they are technically separate contracts.
The options
Business Owner's Policy (BOP)
Bundles general liability and commercial property coverage for small, location-based businesses.
Pros
- Combines two commonly needed coverages into one policy
- Often includes business income coverage for a covered shutdown
- Streamlined application for qualifying small businesses
- Can be more cost-efficient than buying each coverage separately
Cons
- Does not include workers' compensation
- Eligibility is usually limited to smaller, lower-hazard businesses
- Doesn't address employee injury risk at all
Best for
- Small, location-based businesses like offices, shops, and studios
- Businesses wanting liability and property coverage bundled together
Workers' Compensation
A separate, statutory policy covering employee work injuries and illnesses.
Pros
- Required in nearly every state once a business has employees
- Covers medical care and wage replacement for the injured employee
- Includes an Employer's Liability component for certain related lawsuits
Cons
- Does not cover property damage or third-party liability
- Always a standalone policy; cannot be folded into a BOP
- Premium is tied to payroll and class code and can rise after claims
Best for
- Any business with W-2 employees, regardless of whether it also has a BOP
- Employers required by their state to carry coverage
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Side by side
| Feature | Business Owner's Policy (BOP) | Workers' Compensation |
|---|---|---|
| What it bundles | General liability and commercial property | Nothing; it's a standalone policy |
| Covers employee injuries | No | Yes |
| Covers property damage | Yes | No |
| Covers third-party liability | Yes | Only via its Employer's Liability portion |
| Legally required | Not usually required by state law | Yes, in nearly every state once you have employees |
| Can be combined into one contract | N/A | No, workers' comp is always separate |
The bottom line
A BOP and workers' comp are complementary, not competing, coverages, and one cannot substitute for the other. If you run a small, location-based business with employees, you'll typically need both: a BOP or similar package for the building, contents, and third-party liability, and a separate workers' comp policy for anyone on payroll. An agency can quote and coordinate both at once, even though they remain separate policies with their own terms and pricing.
Frequently asked questions
Can I add workers' comp as an endorsement to my BOP?
No. Workers' compensation is always a separate policy, regulated under each state's own workers' comp statute, and cannot be folded into a BOP.
Do I need a BOP if I already have workers' comp?
They cover different things, so most businesses with a physical location and customer or vendor interaction need both a BOP (or equivalent liability and property coverage) and workers' comp.
Does a BOP cover an employee hurt at work?
No. Employee work injuries are handled through workers' compensation, not a business owner's policy.
Can the same agency place both my BOP and my workers' comp?
Yes, an agency can typically quote and coordinate both coverages even though they remain separate policies.
Is a BOP required by law?
Not typically, though a landlord, lender, or client contract may require general liability coverage, which is one part of a BOP.
Last reviewed · Reviewed by Provident Financial Group licensed agents
Compare up to 10 carriers in minutes.
One application goes out to every carrier we can access for your class of business. You get a ranked comparison you can review and purchase online — with a licensed agent available whenever you want one.
Mon–Fri, 8:00am–6:00pm ET · Independent agency licensed in 23 states