A business owner’s policy is the most efficient way for most small Florida businesses to buy insurance, and also the easiest policy to outgrow without noticing. A BOP packages general liability, commercial property and business income into one policy, usually at a better price than buying those coverages separately, which is why it is the starting point for offices, retail stores, salons, medical practices, small restaurants and service businesses across the state. But a BOP is built for a specific kind of business. Whether it fits depends on what you do, how you operate and what your lease and contracts require, and those details are worth getting right before a claim tests them.
Prestige Insurance Group insures small businesses throughout Florida from our offices in Orlando and Miami. We quote BOPs with standard carriers and, for businesses that fall outside a standard BOP, with over 100 MGAs and specialty markets, so a business that outgrows its policy can move to the right one and still get a better price.
What a Business Owner’s Policy Includes
A BOP combines three coverages that nearly every small business needs. General liability responds when a customer, vendor or visitor claims your business injured them or damaged their property, and it pays for the legal defense. Commercial property covers your contents, equipment, inventory and the improvements you made to a leased space, and the building itself if you own it. Business income pays the income you lose and the extra expenses you take on while you are closed after a covered loss, and for many small businesses it is the coverage that decides whether they reopen.
Most BOPs also include smaller coverages that would cost extra on their own, such as money and securities, employee dishonesty, accounts receivable, valuable papers, outdoor signs and limited coverage for property away from your premises. Many carriers offer optional add-ons as well, including equipment breakdown, spoilage, hired and non-owned auto and a small amount of cyber coverage. The exact list and the limits vary by carrier, which is one reason two BOP quotes at similar prices can be very different policies, as our guide to what a business owner’s policy is explains.
Who Qualifies for a BOP
Carriers write BOPs for businesses they consider small and lower hazard, including offices and professional firms, retail stores, salons and barbershops, medical and dental offices, small restaurants without a late-night bar, light service businesses, many home-based and remote businesses and some contractors with a small premises. Eligibility depends on the type of business, its size and its operations, and each carrier draws the line in a different place.
The line usually moves when a business changes shape. Staying open late, adding a bar program, selling a large share of alcohol, adding entertainment, growing past the carrier’s size limits or taking on work outside the original classification can make a BOP unavailable. A business that has drifted outside its BOP without the policy being rewritten may find a claim disputed, and at that point the right answer is usually a commercial package or separate policies, not a cheaper BOP. Our article on common business insurance mistakes Florida owners make covers the ones we see most often, and our guide to choosing insurance for a Florida startup is a good place to begin if you are just opening.
Wind, Flood and Power Outages
Wind is the first Florida question in any BOP. Most policies here carry a separate windstorm or named storm deductible, and it is usually a percentage of the property limit rather than a flat dollar amount. On a policy with meaningful contents or building limits, that percentage can be a larger number than owners expect, so it is worth converting it into dollars before hurricane season rather than after a storm.
Flood is the second. A BOP does not cover flood, whether the water comes from storm surge on the coast or from heavy rain and poor drainage inland. Businesses with inventory, equipment or a ground-floor space should look at a separate commercial flood policy, including those well outside a mapped flood zone. Power outages after a storm are a related problem for any business with refrigeration or perishable stock, so ask whether spoilage and utility interruption are on the policy.
Your Lease Is the First Test of a BOP
Florida landlords, especially in shopping centers and newer developments, usually spell out the insurance they require, including liability limits, the landlord as additional insured, a waiver of subrogation and coverage for your build-out and improvements. Most BOPs can meet those terms, but only when the endorsements are actually on the policy, so send the insurance section of your lease to your agent before you sign it. Our articles on insurance for independent retailers in malls and shopping centers, tenant improvement coverage and what your contract requires from your insurance explain those terms.
Sizing Business Income for a Florida Year
Many Florida businesses earn unevenly across the year, whether because of tourism, seasonal residents or school calendars, and a limit based on an average month may not cover a closure that lands in the busiest season. A long recovery after a hurricane can also outlast a business income period that looked generous on paper, because contractors, equipment and permits are all in demand at the same time. Our guide to business income insurance explains how to size it.
What a BOP Does Not Cover
A BOP leaves out several exposures that many small businesses have. Injuries to your own employees belong to workers’ compensation, which Florida requires for most non-construction businesses with four or more employees and for construction businesses with even one. Vehicles owned by the business need commercial auto, and employees running errands in their own cars create a gap that hired and non-owned auto can fill, often as an add-on to the BOP.
Mistakes in professional advice or services need professional liability, and claims from your own employees over hiring, firing or harassment need employment practices liability. Data breaches and ransomware usually need standalone cyber liability, because the cyber coverage some BOPs include is small, as our article on why small businesses are real cyberattack targets explains. A serious liability claim can also exceed the BOP’s limits, which is where a commercial umbrella comes in. Our article on what business insurance does not cover in Florida lists the common gaps, and the biggest small business insurance claims in Florida shows how they play out.
Online Sellers and E-Commerce
Businesses that sell online fit a BOP less neatly than a storefront does. Product liability, inventory held at fulfillment centers, payment fraud and marketplace account suspensions all raise questions a standard BOP may not answer, and a seller importing or private-labeling products may be treated more like a manufacturer than a retailer. Our guides to e-commerce insurance for Florida online sellers, product liability for online sellers, cyber and payment liability, shipping, fulfillment and return fraud and what happens when Amazon or Etsy suspends your seller account go into each of those.
What a BOP Costs
BOP pricing depends on the type of business, its location, its revenue and payroll, the property limits, the windstorm deductible and the claims history. Two businesses on the same street can pay very different amounts, and the cheapest quote is not always the best value if it carries lower limits or fewer coverages, so the way to a better price is comparing BOPs from several carriers on the same limits and the same add-ons. Our guide to how much small business insurance costs in Florida explains what drives the price, and our page on business owners insurance in Orlando covers what Central Florida businesses should know.
What Florida Business Owners Should Confirm
- Does the policy describe everything your business does today, including hours, alcohol and any new services?
- Is your contents limit enough to replace equipment, inventory and the improvements you made to the space?
- Is business income sized for your busiest season, for a realistic recovery period?
- What is your windstorm deductible in dollars, and do you need flood, spoilage, utility interruption or equipment breakdown?
- Does the policy meet every insurance requirement in your lease, including additional insured status and a waiver of subrogation?
- Do you need workers’ compensation, hired and non-owned auto, professional liability, EPLI, cyber or an umbrella alongside the BOP?
Business Owners Insurance in Florida With Prestige Insurance Group
Prestige Insurance Group writes business owner’s policies for offices, retailers, salons, medical practices, restaurants, service businesses and online sellers across Orlando, Kissimmee, Winter Park, Tampa, Miami, Coral Gables, Doral, Hialeah, Fort Lauderdale and the rest of Florida. We compare BOPs from several carriers on the same limits and add-ons, and when a business no longer fits a BOP, we move it to the package or specialty program it needs. Send us your current declarations page and your lease, and we will tell you whether your policy fits your business as it is today and where we can find you a better price. Call the office nearest you. Se habla español.
Orlando: 407-993-2331 Miami: 305-969-8776
Frequently Asked Questions
What does a business owner’s policy cover in Florida?
A BOP combines general liability, commercial property and business income, plus smaller coverages such as money and securities and employee dishonesty, with optional add-ons like equipment breakdown and hired and non-owned auto.
Does a BOP cover hurricane and flood damage?
Most Florida BOPs cover wind, usually with a separate percentage deductible. Flood is excluded and needs its own commercial flood policy.
What businesses qualify for a BOP?
Small, lower-hazard businesses such as offices, retail stores, salons, medical offices and small restaurants without a late-night bar usually qualify. Late hours, heavy alcohol sales, entertainment or growth can move a business outside a BOP.
Does a BOP include workers’ compensation?
No. Workers’ compensation is a separate policy, which Florida generally requires for non-construction businesses with four or more employees.
General information only, not legal advice. Policy forms, eligibility, coverages, deductibles and carrier appetite vary and change over time. Refer to your actual policy and lease for the terms that apply to your business.
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