A Business Owners Policy (BOP) bundles commercial general liability (CGL) and commercial property coverage into one policy for eligible general contracting businesses. It costs less than buying those coverages separately and is typically the right foundation for GCs with a physical office location and annual revenues under about $5 million. Who this is for: General contractors, remodelers, and light commercial builders who need baseline liability and property protection in one affordable package.
TL;DR — Key Takeaways
- A BOP packages CGL + commercial property + business income; it does not include workers' compensation, commercial auto, professional liability, inland marine, or surety bonds.
- Most carriers write BOPs for general contractors with revenues up to roughly $3M–$5M; above that threshold, standalone CGL + property is usually required.
- Typical BOP cost for a small-to-mid general contractor: $2,800–$9,500/year depending on revenue, payroll, trade mix, state, and loss history.
- Additional insured endorsements (AI), waiver of subrogation, and primary-and-non-contributory (PNC) wording are almost always required by project owners — confirm your BOP can accommodate them before binding.
- A BOP is a starting point, not a complete insurance program. Most GCs also need inland marine/tools floater, umbrella/excess liability, workers' comp, and commercial auto.
What Does a Business Owners Policy Cover for General Contractors?
A BOP has three core insuring agreements packaged under a single premium:
| Coverage | What It Pays | Typical Limit |
|---|---|---|
| Commercial General Liability (CGL) | Third-party bodily injury and property damage; personal and advertising injury; completed-operations liability | $1M per occurrence / $2M aggregate (common minimum) |
| Commercial Property | Business personal property (BPP) at your office — desks, computers, stored materials; building if you own it | Set to replacement cost value of insured property |
| Business Income & Extra Expense | Lost net income + continuing expenses if a covered property loss forces a temporary shutdown | Typically 12-month period; limits vary |
What a BOP does NOT cover (these require separate policies):
- Workers' compensation
- Commercial auto / owned vehicles
- Professional liability (E&O / design-build errors)
- Inland marine / contractors' equipment floater
- Builder's risk (project-specific, per-job)
- Umbrella or excess liability
- Surety / performance bonds
- Employment practices liability (EPLI)
The CGL inside a BOP is almost always written on an occurrence basis, meaning claims arising from work you did during the policy period are covered even if the claim is filed years later — an important distinction for completed-operations exposure.
How Much Does a BOP Cost for a General Contractor?
Premium is calculated using several rating factors. The table below shows illustrative annual BOP ranges by revenue tier. These are typical market ranges, not guarantees; your actual premium will be quoted based on your specific risk profile.
| Annual Revenue | Trade Type | Illustrative BOP Range |
|---|---|---|
| Under $500K | Residential remodeling / light commercial | $2,800 – $4,500 |
| $500K – $1.5M | General residential/commercial GC | $4,200 – $7,000 |
| $1.5M – $3M | Mixed residential / light commercial GC | $6,500 – $9,500 |
| $3M+ | May exceed BOP eligibility — standalone CGL + property often required | Varies |
Key rating factors:
- Payroll and revenue — most GC GLs are rated on payroll (audit basis); confirm with your carrier
- Trade classification — framers, concrete contractors, and high-risk trades pay more than finish carpenters or painting contractors
- State — loss costs differ significantly by state; California, New York, and Florida typically carry higher rates
- Experience Modification Rate (EMR) — an EMR above 1.0 signals above-average losses and will increase workers' comp premium (and can be a negative underwriting signal across your program)
- Claims history — any prior GL or property claims in the last 5 years are heavily scrutinized
- Subcontractor use — if you subcontract more than 25–30% of your work, carriers may require certificates of insurance from subs or apply a surcharge
Who Is Eligible for a General Contractor BOP?
BOP eligibility is determined by the carrier's underwriting guidelines, not a universal standard. Most carriers publishing BOP programs for contractors use thresholds like these:
| Eligibility Factor | Typical Guideline |
|---|---|
| Annual revenues | Under $3M–$5M (varies by carrier) |
| Physical location | Must have a fixed office or commercial premises |
| Operations | Primarily construction / light commercial; some carriers exclude demolition, roofing, underground work, or new residential tracts |
| Subcontractor ratio | Generally below 50% of total payroll |
| Prior losses | Fewer than 2–3 GL losses in prior 5 years; no catastrophic single-occurrence losses |
If your revenue exceeds the BOP threshold, or your work involves high-hazard operations (roofing, structural steel, underground utilities), you will typically need a standalone Commercial General Liability policy combined with a separate Commercial Property policy.
How to Get a BOP as a General Contractor — 5 Steps
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Gather your underwriting data. Compile annual revenue, payroll by job classification (or use a recent workers' comp audit as a proxy), a list of operations/trades performed, prior loss runs (5 years preferred), and your current certificate of insurance if you have one.
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Confirm your coverage requirements. Review any master subcontract agreements or project owner requirements for minimum limits, AI wording, waiver of subrogation, and PNC language. Your BOP must be able to satisfy these at bind.
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Shop with multiple carriers through an independent agent. BOP eligibility and pricing vary significantly across carriers. An independent agent can access admitted markets (Hartford, Travelers, Markel, Employers, CNA, and others [Morrow to confirm current appetite]) plus surplus lines if needed.
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Review the quote carefully. Confirm the CGL occurrence form, completed-operations coverage (often listed separately in aggregate), property coverage is at replacement cost (not ACV), and that endorsements for AI and waiver of subrogation are included or available.
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Bind and set up your certificate/COI process. Provide your agent with standard AI language for your project owners so certificates can be issued quickly when contracts are executed.
Real-World Scenario: BOP for a Texas Residential General Contractor
This is an illustrative example based on typical market conditions; it is not a guarantee of coverage or pricing.
Business profile: A two-partner general contracting firm in the Dallas–Fort Worth area performing residential remodeling and light commercial tenant improvements. Annual revenue: $1.1M. Payroll: $320,000 across three W-2 employees (partner draws excluded from GL payroll per classification rules [verify state/carrier]). No prior GL losses in 5 years. EMR: 0.91 (below-average losses). They use subcontractors for roughly 30% of electrical and HVAC work.
Policy purchased: - BOP with $1M/$2M CGL (occurrence), $500K completed-operations aggregate, $150K BPP at their leased office/storage yard - Business income: 12-month period, $75,000 limit - AI endorsements included; waiver of subrogation included
Estimated annual BOP premium: ~$5,400
What they still needed separately: - Commercial auto (two work trucks): ~$3,800/year - Inland marine / tools floater ($80K scheduled equipment): ~$1,200/year - Workers' compensation (Texas is a non-subscriber state [verify], but they elected coverage): ~$18,500/year - Umbrella ($2M excess over CGL): ~$1,100/year
Total estimated insurance program: ~$30,000/year — a BOP alone is never the full picture.
FAQ: General Contractor Business Owners Policy
Can a general contractor even get a BOP, or do I need a standalone policy? Most small-to-mid general contractors (under $3M–$5M revenue) are eligible for a BOP from admitted carriers. Above that threshold, or for high-hazard trades like roofing or demolition, you typically need standalone CGL + property because BOP eligibility guidelines exclude those risks.
Does a BOP cover my tools and equipment on job sites? No. The commercial property in a BOP covers business personal property at your scheduled premises (your office). Tools and equipment at job sites, in transit, or at temporary locations require a separate inland marine / contractors' equipment floater or tools and equipment policy.
What GL limits does a project owner typically require from a GC? Most residential project owners and general contractors require a minimum of $1M per occurrence / $2M aggregate. Commercial project owners and GCs on larger projects often require $2M/$4M, sometimes requiring higher limits via an umbrella policy stacked on top of your BOP CGL.
What is completed-operations coverage and why does it matter for GCs? Completed-operations (CO) covers bodily injury or property damage that arises from your finished work — for example, a structural issue that causes a roof collapse after the job is done. CO exposure is significant for general contractors and is typically included in your CGL aggregate; some carriers list it as a separate aggregate limit. Always confirm CO is included and what the aggregate limit is.
Will my BOP cover damage I accidentally cause to a client's property on-site? Your CGL covers third-party property damage you cause during operations. However, your own work product and faulty workmanship are typically excluded under standard ISO CGL forms — meaning the cost to redo defective work itself is not covered, though resulting damage to other property may be. This distinction matters enormously for GCs; discuss it with your agent.
What does "primary and non-contributory" mean and can my BOP provide it? "Primary and non-contributory" (PNC) means your policy pays first and does not seek contribution from a project owner's or GC's policy if both are triggered by the same loss. Most carriers can add PNC language by endorsement. Confirm this is available before binding if your contracts require it.
Does a BOP satisfy workers' comp requirements? No. Workers' compensation is a legally separate line of coverage governed by each state's workers' comp statute. A BOP has no workers' comp component whatsoever. Most states require GCs with employees above a certain threshold to carry workers' comp [verify state]. Texas is a notable exception allowing non-subscription, though most commercial projects effectively require it contractually.
How does premium auditing work on a GC's BOP? The CGL portion of a BOP is almost always subject to premium audit at policy expiration. You pay a deposit premium based on estimated payroll and/or revenue at inception; the auditor adjusts the final premium based on actual figures. If your business grew significantly during the policy year, you may owe additional premium. Budget accordingly and keep clean payroll records.
Why Choose Morrow for Your General Contractor BOP
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Independent agency, multiple carrier options. Morrow is not captive to one insurer. We shop your GC risk across multiple admitted and surplus lines carriers to find the best combination of eligibility, coverage terms, and price — including carriers with contractor-friendly completed-operations and AI endorsement language.
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Fast COI and certificate turnaround. General contractors issue certificates constantly — at contract execution, at project start, when a project owner audits subs. Morrow handles certificate requests quickly so you are never holding up a job start because of a COI delay.
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GC program knowledge, not generic small-business quoting. We understand the difference between a CGL occurrence form and claims-made, what PNC language actually says, how EMR affects pricing, and when a BOP is genuinely the right product versus when standalone coverage is better for your operations.
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Full program placement. A BOP alone is not enough for most GCs. We structure your full insurance program — BOP, inland marine, commercial auto, workers' comp, umbrella — so you are not left with coverage gaps that only surface at claim time.
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Claims advocacy. If a claim happens, you get a licensed professional in your corner, not a call center. We help you document, submit, and navigate the claims process so you receive what you are owed under the policy.
Get a Quote
Ready to see what a BOP costs for your contracting business?
Get a General Contractor BOP Quote from Morrow — or call [Morrow to confirm phone number] to speak with a licensed commercial P&C agent today.
Trust strip: Morrow (Afthonea Inc, DBA Morrow) is an independent commercial insurance agency licensed in [Morrow to confirm states]. We place coverage with admitted and surplus lines carriers rated A- or better (AM Best). [Morrow to confirm Google/review platform rating and count.]
Related Pages
- General Contractors Insurance — Industry Overview
- Commercial General Liability for General Contractors
- Inland Marine & Contractors Equipment Floater
- Workers Compensation for General Contractors
- Umbrella Insurance for Contractors
- What Is a Business Owners Policy (BOP)?
- BOP vs. Standalone CGL + Property: Which Is Right for Your Business?
Author: Reviewed by a licensed commercial P&C insurance professional with experience placing contractor risks across admitted and surplus lines markets. [Morrow to confirm named author and credentials.]
Published: June 2026 | Last updated: June 2026
Sources and references: - Insurance Information Institute (III) — Business Owners Policy overview - ISO (Insurance Services Office) — CGL occurrence form CG 00 01; BOP form BP 00 03 - National Association of Insurance Commissioners (NAIC) — commercial lines regulatory guidance - National Council on Compensation Insurance (NCCI) — experience modification rate methodology - U.S. Bureau of Labor Statistics — construction industry wage and employment data - State Departments of Insurance — workers' compensation threshold rules [verify by state] - OSHA — contractor safety classification guidance