If you run a business in Minneapolis, Duluth, or St. Cloud, having the right insurance is more than a safety net—it’s part of running a smart operation. A Minnesota business owners policy (BOP) bundles essential coverages into one plan, helping protect you from costly setbacks while keeping your premiums affordable.
This guide breaks down what a BOP covers, who qualifies, what it costs, and how to stay compliant with Minnesota BOP insurance requirements.
Who Needs a BOP in Minnesota?
A BOP insurance Minnesota plan is designed for small and midsize businesses that:
- Operate from a physical location
- Employ fewer than 100 people
- Generate under $5 million in annual revenue
- Lease or own business property or equipment
Common examples include:
Retail shops: Clothing stores, bookshops, home décor stores
Food service: Cafés, food trucks, bakeries, casual dining
Professional services: Accountants, consultants, legal offices
Contractors: Tradespeople, small construction businesses
While Minnesota does not require a BOP, many small businesses purchase it to streamline coverage.
Workers’ compensation insurance is mandatory for all employers with employees, including part-time staff, with exceptions for sole proprietors, partners, and certain family members. Always confirm your status under Minnesota law.
High-risk industries like cannabis, jewelry, or manufacturing may need customized commercial policies because of exclusions in standard BOPs.
What Does a Minnesota BOP Cover?
A standard BOP includes three essential types of insurance:
1. Commercial Property Insurance
Protects buildings, equipment, and inventory from fire, storms, vandalism, or theft. For example, if your St. Paul café has $25,000 in damage from a kitchen fire, your BOP helps pay for repairs and replacements.
2. Business Interruption Insurance
Covers lost income if a covered event forces your business to shut down. A burst pipe in your Rochester office that halts operations for two weeks? This protection pays rent, wages, and relocation costs.
3. General Liability Insurance
Covers injuries, property damage, or lawsuits from third parties. If someone slips on icy steps at your Minneapolis shop, your BOP covers legal and medical expenses.
Most businesses choose Special Form coverage, which protects against all risks not specifically excluded. This broader option is useful in a state like Minnesota, where commercial property insurance Minnesota rates reflect winter storms, floods, and other local hazards. You can also explore ways small businesses can lower insurance costs without sacrificing protection.
Add-Ons to Enhance Your Minnesota BOP Coverage
Customize your plan with optional endorsements:
Cyber Liability Insurance: Essential for businesses handling credit cards or storing client data. Covers breach notifications, legal costs, and recovery.
Equipment Breakdown: Replaces essential systems like HVAC, POS machines, or freezers.
Commercial Auto: Adds liability protection for business-owned or employee-driven vehicles.
Professional Liability (E&O): Helps consultants, realtors, and advisors handle negligence or mistake claims.
BOP vs General Liability Minnesota: What's the Difference?
General liability only protects against lawsuits and third-party injuries. A Minnesota business owners policy includes that plus property and income protection in one bundled plan. In most cases, business owners policy cost Minnesota is lower than buying each coverage separately.
Real Claims from Minnesota Businesses
Here are real-world scenarios where Minnesota BOP insurance proved critical:
Slip-and-Falls: Winter weather makes icy sidewalks a common cause of injury claims.
Storm Damage: Tornadoes and floods across the Mississippi River basin frequently affect businesses in Duluth and Rochester.
Vandalism and Theft: Stores in cities like Bloomington have seen major break-ins and property damage during civil unrest.
Cyber Attacks: A Duluth retailer had to shut down after a ransomware incident. Cyber endorsements covered recovery and notification costs.
Business Owners Policy Cost Minnesota: What to Expect
The cost of a BOP insurance Minnesota plan depends on:
Your industry’s risk level
Property size and location
Claims history and revenue
In 2025, the average Minnesota BOP premium is about $1,655/year ($138/month) for a typical small business. Actual costs depend on business size, revenue, risks, and coverage options. Bundling property and liability in a BOP is generally cheaper than separate policies, but the savings vary based on insurer and policy choices.
Minnesota BOP Insurance Requirements to Know
Although Minnesota doesn’t require a BOP, you may still be subject to other Minnesota commercial insurance requirements:
Commercial Auto Insurance: Required if your business uses vehicles for deliveries or job sites.
Liquor liability insurance: Is typically required for businesses that sell or serve alcohol in Minnesota. The specific requirement is often tied to the licensing process and may vary by city or county ordinance.
The Minnesota Department of Commerce oversees insurers to ensure pricing fairness and legal compliance.
The Minnesota Consumer Data Privacy Act takes effect July 31, 2025. Until January 31, 2026, businesses are given a 30-day window to cure violations before the Attorney General imposes penalties, which can be as high as $7,500 per violation.
How to File a BOP Claim in Minnesota
Follow these steps to get your claim processed quickly:
- Report the incident within 48 hours.
- Collect documentation: Photos, receipts, and police or fire reports.
- Cooperate with inspections from the adjuster.
- Track expenses for repairs, lost income, and relocation.
Most simple claims are resolved within 30–60 days, depending on the insurer and complexity, but actual timelines may vary.
Final Thoughts: Is a Minnesota BOP Right for You?
If your business is customer-facing, located in a storefront, or employs staff, the answer is likely yes.
You operate outside your home
You have under 100 employees
You generate less than $5M annually
You want one streamlined policy that protects income, liability, and property
Don’t wait until a lawsuit or flood drains your resources. Call (855) 718–7552 to speak with an expert.
You’ve built something valuable—protect it with coverage built for Minnesota businesses.
