Liberty Mutual Pulls Business Owner Policies in California: What It Means for Small Businesses

California's insurance crisis is no longer confined to homeowners.

In yet another sign of deepening market strain, Liberty Mutual announced that it will stop offering its Business Owner's Policy (BOP) — a bundled commercial insurance product that covers small businesses — across the state this fall.

The decision, first reported by ABC 10 Sacramento's To The Point with Alex Bell, marks a major retreat by one of California's largest commercial carriers.

"Another insurance company is making changes," Bell reported. "Liberty Mutual sent a letter to agents and brokers saying that this fall, they'll no longer offer their bundled insurance products for businesses called BOP."

The change takes effect October 1, 2024, and by December, the company plans to non-renew its entire book of existing BOP policies — meaning thousands of small businesses will need to find new coverage before year's end.

1. What Liberty Mutual Is Cutting

Liberty Mutual's Business Owner's Policy (BOP) is a staple product for small and midsize enterprises. It combines property, liability, and business interruption coverage into one streamlined package.

The BOP is commonly used by:

• Small retail shops

• Professional offices

• Restaurants and cafes

• Service providers like salons, studios, and clinics

As Bell explained:

"These types of policies cover small office, retail, and restaurant spaces."

After October 1st, Liberty Mutual will stop writing new BOPs — and by December, existing ones will begin to non-renew.

"The real scary part," said an insurance expert interviewed by ABC 10, "is that they announced they're going to start non-renewing the entire book of business for that classification."

That means every policyholder under this category — even those with clean claims histories — will be dropped.

2. Why Liberty Mutual Says It's Leaving

In its letter to agents, Liberty Mutual cited California's "adverse market conditions" as the reason for the pullback.

The company, like many others, is struggling with: