You need general liability. You probably need commercial property coverage for your office. A BOP bundles both into one policy at a lower cost than buying them separately. For most PM companies, it's the smarter way to buy.
A business owner's policy combines the two coverages that most small businesses need: general liability and commercial property. Instead of buying and managing two separate policies, you get one policy with one premium and one renewal date.
Bodily injury, property damage to others, legal defense, and advertising injury. The same GL coverage you'd buy standalone — bundled at a lower cost.
Your office space, furniture, computers, signage, and business equipment. If you have a physical office, a BOP protects the stuff inside it.
If a covered event (fire, storm) forces your office to close, BOP covers the lost income during the restoration period.
Coverage for employee theft, burglary, and robbery of business property. Important if you store keys, lockboxes, or equipment at your office.
A BOP covers your company — not the properties you manage. Here's what falls outside a standard business owner's policy and where to find the right coverage.
Your BOP covers your company's office and equipment. The properties you manage are covered through Damage Control. Learn more →
Guest liability at the properties is handled by Liability Control, not your BOP. Learn more →
Errors and omissions isn't included in a standard BOP. You'll need a separate E&O policy. Learn more →
Employee injuries on the job require workers' comp, which is separate from a BOP.
If your company owns or leases vehicles, you'll need commercial auto coverage.
Property management companies are in a unique spot: you need liability coverage for your business operations and property coverage for your office — but the properties you manage are covered separately. A BOP handles the company side cleanly so you can focus your attention (and budget) on the portfolio coverage that matters more.
The math is straightforward. Buying GL and commercial property separately costs more than bundling them. Here's what typical PM companies pay.
Two policies, two premium payments, two renewal dates
One policy, one payment, 10-30% savings
Exact savings depend on your location, revenue, portfolio size, and claims history. These ranges are based on PM companies with $1M/$2M GL limits and $50,000-$200,000 in business property coverage.
A BOP covers the core risks that every small business faces. Here's what's included in a standard policy for a property management company.
Not every PM company needs a BOP. If you work from home with minimal equipment, standalone GL might be enough. But if any of these apply to you, bundling makes sense.
If you lease or own office space, you need commercial property coverage for the contents. A BOP bundles it with the GL you already need.
Computers, monitors, printers, lockboxes, spare keys, cleaning supplies — if it's worth insuring, commercial property coverage in a BOP covers it.
Most commercial leases require tenants to carry both GL and commercial property insurance. A BOP satisfies both requirements with one policy.
One policy, one premium, one renewal. Instead of managing separate GL and property policies, a BOP consolidates your core business coverage.
General liability is one coverage: it protects against third-party claims of bodily injury, property damage, and advertising injury. A BOP includes general liability plus commercial property insurance (and usually business income coverage) in a single policy. If you only need GL and don't have a physical office or business equipment to insure, standalone GL is fine. If you have an office, equipment, or a commercial lease, a BOP gives you both coverages at a bundled discount.
No. A BOP covers your business operations and your business property (office, equipment). It does not cover the rental properties in your portfolio — those are covered through Velaris Damage Control (for guest-caused damage) and homeowner property policies. Think of it this way: the BOP protects your company, Damage Control and Liability Control protect the properties.
Typical annual premiums range from $1,200 to $3,200, depending on your revenue, location, number of employees, office size, and claims history. That's usually 10-30% less than buying separate GL and commercial property policies. The exact savings depend on your specific risk profile, but bundling almost always costs less than two standalone policies.
Yes. Most BOPs allow you to add endorsements for additional coverages like cyber liability, hired and non-owned auto, equipment breakdown, and employee dishonesty. You can also add higher limits through an umbrella or excess liability policy. Your Velaris advisor can help you identify which endorsements make sense for your business.
If you run your PM business from a home office and don't have significant business equipment or inventory, standalone general liability may be sufficient. Your homeowner's policy typically excludes business property and business liability, so you still need GL — but you may not need the commercial property portion that a BOP adds. That said, if you have more than a laptop and a printer dedicated to the business, a BOP is worth considering for the theft and damage coverage alone.
Talk to us about a BOP that covers your PM business — so you can focus your budget on the portfolio coverage that protects your revenue.
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