BUSINESS OWNER'S POLICY (BOP) FOR ATTORNEYS

Frequently Asked Questions about Business Owners Policies

• What's the difference between a BOP and General Liability coverage?

  A Business Owner’s Policy (BOP) and General Liability Insurance are related but not the same. A BOP is a bundled package that includes general liability coverage, commercial property insurance, and often business interruption coverage. It’s designed to offer broader protection in one policy—ideal for small businesses, such as law firms.

  In contrast, general liability insurance is just one part of a BOP. It covers third-party claims for bodily injury, property damage, and advertising injury—but not your own business property or income loss. A BOP provides general liability and added protections in a single, cost-effective plan.

• How much does a business owner's policy for law firms cost?

  Business Owner's Policies are a smart, customizable choice because a well-structured policy can protect you from a loss arising from client accidents and other incidents like burglary, fire, or other uncontrollable scenarios.

  Firms can expect to pay as little as $500 and as much as $3,500 or more, depending on the size of the firm and its unique profile.

• Does a BOP include Workers' Compensation?

  No, a standard Business Owner’s Policy (BOP) does not include workers’ compensation.

  A BOP combines general liability and commercial property coverage, but it excludes employee injury protection. Here’s how the other coverages fit in:

  • Workers’ Compensation must be purchased separately and is required in most states if your firm has employees. It covers medical costs, lost wages, and rehabilitation for workplace injuries.

  • Stop Gap Liability Insurance is an endorsement sometimes added to a Business Owner's Policy (BOP) to cover employer liability—that is, lawsuits from employees alleging negligence related to a workplace injury. It’s especially relevant in monopolistic states (such as Ohio, North Dakota, Washington, and Wyoming), where workers' compensation is state-provided but doesn’t include employer liability.

• What happens if my business grows?

  As your law firm expands—hiring staff, opening new offices, or taking on higher-value cases—your business insurance needs will grow, too. Here are the key steps to take:

  1. Reevaluate Your Coverage Limits

  Higher revenue and more exposure mean your existing general liability or professional liability (legal malpractice) limits may no longer be sufficient. Consider increasing your coverage to protect against larger claims.

  2. Add or Update Workers’ Compensation

  If you hire employees or bring on contractors, you’ll likely be required to carry workers’ compensation insurance. Make sure it reflects your updated payroll and employee count.

  3. Consider an Umbrella or Excess Liability Policy

  As your risk increases, an umbrella (or excess) policy can provide extra protection above your existing liability limits—including general, auto, or employers’ liability.

  4. Review Professional Liability (Malpractice) Coverage

  Ensure your policy covers any new practice areas or jurisdictional expansions. Some insurers require specific endorsements or notice of material changes to your operations.

  5. Evaluate Cyber Liability Insurance

  Growth often means more sensitive data and digital communication. If your firm handles client data electronically, cyber insurance can protect against breaches, ransomware, and liability.

  6. Update Your BOP or Move to Custom Coverage

  A Business Owner’s Policy may no longer fit your firm’s complexity. You may need customized policies for each coverage type—property, liability, auto, EPLI (employment practices liability), etc

• Why is a Business Owner’s Policy an essential coverage for any law firm?

  A Business Owner’s Policy (BOP) is essential for law firms because it bundles two key protections—general liability and commercial property insurance—into one affordable package. It covers claims such as client slip-and-fall accidents, damage to office equipment, and business interruption losses resulting from events like fire or theft.

  For solo and small firms, a BOP provides foundational coverage against everyday risks, making it easier to stay protected without having to juggle multiple policies. As your firm grows, it’s also easy to customize with add-ons like professional liability or cyber insurance.