BOP Insurance Cost

To get you the information you need fast, we've answered common questions 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: What your business does sets your baseline premium more than anything else. Software companies pay far less than roofing contractors or pressure washing services because the risk is lower.
• Geographic Location: Your state's legal climate and claims patterns matter. States with tort reform and less litigation have lower premiums. High-lawsuit areas cost more.
• Business Size: More employees, customer interactions and revenue mean more chances for claims. A solo consultant has minimal claim risk compared to a larger firm with multiple employees and high customer volume.
• Property Values: BOP bundles property coverage with general liability, so your physical assets affect your premium. Businesses with expensive specialized equipment pay much more than home-based operations with minimal property.
• Past Claims History: Your claims history affects BOP rates. Clean records get the best pricing. One liability claim can trigger rate increases that last for years. Multiple claims push premiums even higher.
• Coverage Limits: Higher liability and property limits cost more. The protection you buy directly affects what you pay.

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.