BOP Insurance Cost

To get you the information you need fast, we've provided our answers to frequently asked question about BOP insurance costs:

BOP insurance costs an average of $1,767 yearly based on a two-person business with $300,000 in annual revenue and $150,000 in payroll with a $1 million per claim $2 million aggregate general liability policy with $5,000 of property coverage. While this is the case, your premium can range from $297 to $16,158 annually depending on your business's specific risk and location.

The average cost of BOP insurance at the industry level ranges from $25/mo for drone businesses to $1,346/mo for pressure washing companies. Based on the average cost for business owners' policies, the industries we studied fall into the following rate categories:

• Below average BOP costs (Less than $120/mo): Tech related businesses (software, IT, computer repair), marketing/consulting, daycares, professional consumer services (barbers for example), retail.
• Average BOP costs ($120/mo to $170/mo): Catering, coffee shops, landscaping, massage, spa and electrician businesses.
• Higher than average BOP costs (Over $170/mo): Most contractors and those in construction, higher risk food businesses (food trucks, restaurants), cleaning firms and pressure washing.

Note: We used quotes from 10 major insurers for businesses with three employees, $150,000 payroll and $300,000 revenue. Expect different pricing for your unique situation and state.

Average BOP insurance costs vary by state ranging from $128 to $171. If you operate in low-litigation states (those with fewer lawsuits against businesses) like Maine, North Dakota or Kentucky, you'll pay the lower end of this range under $140 monthly. Coverage costs more in high-lawsuit states like New York, Pennsylvania and New Jersey between $168 and $171 because insurers face frequent claims and larger payouts.

Note: We gathered quotes for businesses with three employees, $150,000 payroll and $300,000 revenue from 10 major insurers in each state. Your BOP costs will vary based on your industry, business size and claims history.

Several factors affect your BOP insurance rates including:

• Industry Type: The nature of your business operations establishes your baseline business owner's policy premium more than any other single factor, with low-risk operations like software companies paying far less than high-hazard businesses like roofing contractors or pressure washing services.
• Geographic Location Shapes Your Rate: Where you conduct business matters since each state has its own legal climate and historical claims patterns. Business-friendly states with tort reform laws and less litigation result in lower premiums, while high-lawsuit areas significantly increase your BOP insurance costs.
• Business Size: Your company's size creates a multiplier effect on business insurance risk, as every additional employee, customer interaction, and dollar of revenue increases the statistical likelihood of claims. A solo consultant faces minimal BOP insurance claim risk compared to a larger firm with multiple employees and higher customer volume.
• Property Values: BOP insurance bundles property coverage with general liability protection, so the value of your physical assets directly affects your premium. Businesses with expensive specialized equipment pay significantly more than home-based operations with minimal property to insure.
• Past Claims History: Insurers rely heavily on your specific claims history when calculating BOP insurance rates, with clean records earning the best available pricing. Filing even one liability claim can trigger substantial rate increases that persist for years, while multiple claims establish a pattern resulting in even steeper premiums.
• Coverage Limits: The amount of protection you purchase fundamentally determines your business owner policy cost, with higher liability and property protection limits increasing premiums proportionally.

Although BOP insurance costs an average of $147 per month, our research shows it can range from $22 to $1,607 monthly based on your industry, location, claims history and business size. When shopping for quotes, you don't have to accept the first one you get. Adjust coverage limits, raise deductibles and bundle policies to find cheaper premiums.