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Business owner’s policy cost
A business owner's policy (BOP) bundles general liability insurance and commercial property insurance, usually at a lower cost than if you purchased these policies separately. The cost of BOP insurance depends on the policy limits you choose, the value of your business property, and more.
What is the average cost of a BOP?
Small businesses pay an average of $83 per month for a business owner’s policy. Annual premiums range from under $1,000 to over $4,000 per year.
Our figures are calculated using the median cost of policies sold by leading insurance companies to Insureon's small business customers. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
A BOP includes both general liability coverage and commercial property insurance at a lower rate than buying each policy separately. That means your premium depends on your risk factors for these coverages.
- General liability insurance costs primarily depend on the frequency and type of customer or client interactions, along with your industry, revenue, and location.
- Property insurance premiums mostly depend on the value of the insured property, among other factors.
Typical business owner's policy costs for Insureon customers
The average cost of BOP insurance is $83 per month for Insureon's small business customers.
Annual premiums range from under $1,000 to over $4,000 per year. Among our customers, 42% pay less than $50 per month for a business owner's policy, and another 30% pay between $50 and $100.
BOP insurance costs depend on your small business's risks, the value of your business property, and the amount of coverage you choose.
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How is a business owner's policy cost calculated?
The cost of a business owner's policy depends on several factors, including:
- Location of your business
- Policy limits and deductible
- Your industry risks
- Business property value
- Number of employees
Business location
Your business location is one of the factors that can determine how much you'll pay for a BOP policy. For example, a small shop in rural Pennsylvania would cost much less to insure than a similar shop in urban California.
Location can impact your costs for a few reasons:
- Each state has its own regulations, which can determine the type and amount of insurance a business must carry.
- Some cities, states, and regions face higher risks than others. These risks include crime, natural disasters, or proximity to streams or lakes that might flood. When a location has higher risks, you can expect to pay more for insurance.
- The cost of healthcare, property repairs, and similar expenses depends on your location. Where these costs are higher, you can expect to see higher insurance rates as well.
Average BOP costs for Insureon's customers vary across our top states, from a low of $54 monthly in North Carolina to a high of $84 per month in New Jersey:
| State | Business owner's policy cost |
|---|---|
$59 per month | |
$76 per month | |
$66 per month | |
$58 per month | |
$72 per month | |
$84 per month | |
$75 per month | |
$54 per month | |
$62 per month | |
$73 per month |
Find business insurance requirements in your state
Select your state to learn about insurance requirements for your small business.
Policy limits and deductible
If you want car insurance that pays for a wide range of damage, you have to pay more for it. The same rule applies to business insurance policies.
A BOP with higher coverage limits would cost more, but it would reduce your out-of-pocket costs during a claim.
The majority of Insureon's customers (87%) choose a BOP with limits of $1 million / $2 million. This includes:
- $1 million per-occurrence limit. The insurer will pay up to $1 million to cover claims related to a single incident that occurred while the policy was active.
- $2 million aggregate limit. During the policy period (usually one year), the insurer will pay up to $2 million to cover all claims.
Ten percent of our customers choose business owner's policy insurance with $2 million / $4 million limits, the next most popular choice.
The average deductible is $500 for Insureon's customers. You can choose a higher deductible to save money on your premium. However, this should be an amount you can easily afford, as you can't benefit from your insurance without first paying the deductible on a claim.
Consult an insurance agent if you have any questions or need advice about your coverage needs.
Industry
For the general liability insurance portion of a BOP, your industry has a significant impact on policy costs.
Premiums are higher for industries that have frequent public interactions or handle property that belongs to customers or clients. That includes retailers with storefronts, dine-in restaurants, and auto repair shops, where customer bodily injuries and property damage are common risks.
Businesses that have a low rate of interactions are considered low risk, as there's less chance of a customer accident. A business that offers consulting or other professional services remotely or to a few select clients won't have to pay a lot for general liability coverage.
Keep in mind, you may need to add bailee coverage if your business has temporary possession of items belonging to someone else.
Industries like construction, real estate, and manufacturing have higher premiums because they own valuable property or equipment, and also have an increased chance of third-party liability claims.
The chart below illustrates how the type of business affects what you'll pay for a business owner's policy.
Top industries we insure
To see insurance costs for businesses in your industry, visit our industry-specific cost analyses.
Property value
For the commercial property insurance portion of a BOP, the cost depends on the value of your business property, its location, and how you choose to protect it.
These are the main factors that determine the cost of property coverage included in a BOP:
- Business personal property (BPP) value. To protect your property, the first step is knowing what it’s worth. You'll need an estimate of your business personal property. This amount will help you determine how much coverage is sufficient to pay for stolen, damaged, or destroyed items.
- Replacement value versus actual cash value. The cost of a BOP varies depending on how you choose to insure your business property. You can insure it for its replacement value (cost when new), or save money by insuring it for its actual cash value (depreciated value).
- Age and location. Though it seems counterintuitive, older buildings may cost more to insure, as they're often more susceptible to damage. If your business is located in an area with an increased risk of vandalism, fires, or hurricanes, that may impact your costs as well.
- Endorsements. Additional coverages, called endorsements or riders, can expand the protection of a BOP at an increased cost. For example, business interruption insurance covers lost income due to a temporary closure, while equipment breakdown insurance covers equipment that suffers a mechanical failure.
Keep in mind, a business owner's policy won't cover company vehicles or items outside of your primary location. Most states require commercial auto insurance for business-owned vehicles, while you'll need inland marine insurance to cover property brought to jobsites.
Number of employees
In general, the more employees you have, the more you'll need to pay for a BOP. Every employee you hire, especially those in customer-facing positions, increases your risk of accidents and lawsuits.
Even single-employee businesses, such as sole proprietors, independent contractors, and freelancers, should consider a BOP to protect them from the high costs of lawsuits, medical expenses, and repairs.
A BOP provides protection when a customer is injured, but it won't cover employee injuries. For that, you'll need workers' compensation insurance, which most states require for businesses that have employees.
Does my business need a business owner's policy?
A business owner's policy is a must-have for small businesses that interact with customers and own business property.
At any business, a visitor could trip and suffer an injury. If the visitor sues, legal costs can escalate to the point where they could sink your business.
Even if no one outside your company visits your office, someone could still hold your business liable for damages. For example, businesses that run advertising campaigns or post on social media could face a lawsuit if they use content that doesn't belong to them, or make a false claim about a competitor.
When someone sues your business—even if it's a frivolous lawsuit—you'll have to pay legal defense costs, including the cost of hiring an attorney. If you lose the suit, you could end up paying a fortune in a court-ordered judgment or a settlement.
A general liability policy covers all of these costs, including bodily injuries, personal injuries, and advertising injuries. Commercial property insurance covers your building, computers, equipment, tools, and furniture in the event of a burglary, storm, or fire.
A business owner's policy includes both coverages, safeguarding your business against the most common lawsuits and losses. Because the premium is based upon your level of risk and the value of your business property, small businesses and contractors often pay only a small monthly amount for a BOP.
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FAQs about business owner's policy
A business owner’s policy is one of the most common commercial insurance policies. It’s highly customizable, so the specifics depend on your business. Find out how to get a policy, which businesses are eligible, and the answers to other frequently asked questions.
How can you save money on a BOP?
There are several steps you can take to reduce your BOP insurance premium and avoid overly expensive rates:
Shop around. Insurance companies offer a range of business owner's policy premiums and coverages. Get quotes from different carriers with Insureon's easy online application.
Pay your entire premium upfront. You can pay your BOP premium in monthly or annual installments. Many insurers offer a discount when you pay the full annual premium.
Proactively manage your risks. Businesses with a clean claims history pay less for insurance, which is another reason to reduce your liabilities.
A strong risk management plan might include:
- Develop a thorough training program for employees
- Invest in a security system
- Compile rules for posting to social media
- Create procedure checklists and reviews
- Minimize hazards on your premises
Strategically select your office location. Picking a safe district away from flood zones and other dangers can help you save money on a business owner's policy.
Customize your coverage options. You'll want limits and endorsements that sufficiently protect your business, without overpaying for coverage you don't need. A licensed agent can help recommend the right insurance coverage for your business's unique risks and your budget.
Why do small businesses choose Insureon?
Insureon is the #1 digital agency for small business insurance. Our customers choose us to find the right policies for their needs from top-rated carriers.
Fill out our easy online application to get free quotes for a business owner's policy, workers' comp, professional liability insurance, and other types of coverage.
Our insurance agents will help you select the best options for your small business. Get peace of mind knowing you have the right protection against legal costs and other financial losses.
Once you choose a policy, you can begin coverage in less than 24 hours and get a certificate of insurance as proof of coverage.
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Learn more about business insurance costs
Updated: February 19, 2026
The average costs on this page were derived from our data on 100,000 small business owners who purchased policies through Insureon. Most of our customers have fewer than five employees, annual revenue ranging from less than $50,000 to more than $200,000, and have been in business for five years or less.