BOP Insurance Cost for 2025

Updated: August 15, 2025

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Key Takeaways

Small business owners spend between $22 and $1,607 monthly on business owner's policy (BOP) insurance, depending on their location and their activities.

Your industry type, claims history, location and business size impact BOP insurance costs the most.

You can immediately save by shopping multiple insurers, choosing appropriate coverage limits, raising your deductible and bundling with other business policies.

How Much Does BOP Insurance Cost?

BOP insurance costs an average of $147 per month, but when we analyzed quotes from 10 insurers across 79 industries, premiums range from $22 to $1,607 monthly. These rates were for small businesses with three people, $150,000 payroll, $300,000 revenue and standard coverage limits.

Your business owner's policy premium varies by industry, size and location. Consulting firms pay near the minimum, while restaurants face higher costs. Below, we'll show industry and state differences, plus factors affecting your rate.

Average Cost of BOP Insurance by Industry

BOP insurance costs vary widely across industries. Our research shows a $1,321 difference between the cheapest and most expensive average monthly costs.

Drone businesses only pay an average of $25 monthly ($297 annually) due to their low-risk, office-based operations with minimal equipment liability. In contrast, pressure washing companies face $1,346 monthly premiums ($16,158 annually) because they handle high-pressure equipment that can cause considerable property damage, water intrusion claims and slip-and-fall accidents on wet surfaces.


Accountants	$32
Ad Agency	$41
Auto Repair	$223
Automotive	$79
Bakery	$134
Barber	$54
Beauty Salon	$99
Bounce House	$104
Candle	$81
Cannabis	$99
Catering	$99
Cleaning	$188
Coffee Shop	$133
Computer Programming	$32
Computer Repair	$67
Construction	$228
Consulting	$32
Contractor	$378
Courier	$289
DJ	$29
Daycare	$49
Dental	$32
Dog Grooming	$93
Drone	$25
Ecommerce	$104
Electrical	$166
Engineering	$49
Excavation	$692
Florist	$59
Food	$158
Food Truck	$207
Funeral Home	$89
Gardening	$158
HVAC	$361
Handyman	$363
Home-based	$35
Hospitality	$95
Janitorial	$202
Jewelry	$39
Junk Removal	$240
Lawn/Landscaping	$177
Manufacturing	$38
Marine	$41
Massage	$141
Mortgage Broker	$34
Moving	$183
Nonprofit	$53
Painting	$211
Party Rental	$117
Personal Training	$35
Pest Control	$48
Pet	$83
Pharmacy	$91
Photography	$32
Physical Therapy	$41
Plumbing	$535
Pressure Washing	$1,346
Real Estate	$79
Restaurant	$214
Retail	$98
Roofing	$567
Security	$206
Snack Bars	$175
Software	$30
Spa/Wellness	$156
Speech Therapist	$46
Startup	$43
Tech/IT	$32
Transportation	$56
Travel	$31
Tree Service	$192
Trucking	$152
Tutoring	$34
Veterinary	$67
Wedding Planning	$32
Welding	$244
Wholesale	$66
Window Cleaning	$234
lawyers	$34

How did we determine these rates?

These rates are for small businesses with two employees across 79 major industries or business types and focus solely on business owner’s policies.

Average Cost of BOP Insurance by State

Our study shows that BOP insurance costs vary substantially by state. North Carolina has the lowest rates at $128 monthly ($1,532 annually), while small businesses in New York pay $43 more with an average cost of $171 monthly ($2,055 annually).

This difference reflects New York's high-litigation environment, where lawsuits are more frequent and settlements larger, plus stricter regulatory requirements that increase insurer operating costs. North Carolina's business-friendly legal climate and streamlined regulations help keep premiums lower.


Alabama	$144
Alaska	$132
Arizona	$139
Arkansas	$141
California	$164
Colorado	$146
Connecticut	$160
Delaware	$158
Florida	$160
Georgia	$149
Hawaii	$155
Idaho	$140
Illinois	$162
Indiana	$144
Iowa	$141
Kansas	$144
Kentucky	$137
Louisiana	$167
Maine	$128
Maryland	$140
Massachusetts	$155
Michigan	$140
Minnesota	$138
Mississippi	$148
Missouri	$145
Montana	$146
Nebraska	$140
Nevada	$167
New Hampshire	$146
New Jersey	$168
New Mexico	$149
New York	$171
North Carolina	$128
North Dakota	$128
Ohio	$137
Oklahoma	$138
Oregon	$137
Pennsylvania	$171
Rhode Island	$162
South Carolina	$152
South Dakota	$138
Tennessee	$144
Texas	$148
Utah	$139
Vermont	$141
Virginia	$134
Washington	$167
West Virginia	$155
Wisconsin	$144
Wyoming	$137

How did we determine these rates?

These rates are for small businesses with two employees across 79 major industries or business types and focus solely on business owner's policies.

What Affects BOP Insurance Cost?

Insurers use several factors to calculate your BOP insurance costs. These are:

Industry

Your business type greatly impacts what you'll pay. Our data shows that software companies have an average monthly cost of $30, versus contractors who pay $378. The difference? Office work versus high-risk construction with heavy equipment and injury potential.

Claims history

Past commercial insurance claims (any time you've asked your insurer to pay for damages or losses) tell insurers you're likely to file again, making this a huge cost driver. Picture two identical restaurants where one had three slip-and-fall incidents. The one with claims will pay roughly double what the clean-record business pays.

Location

Where you operate makes a big difference in costs. In our study, small businesses in California averaged $164 monthly compared to $128 in North Dakota. States with more lawsuits and stricter regulations cost more to insure.

Business size

More employees and higher revenue mean more exposure everywhere. For example, a solo consultant might pay $100 monthly, while a 10-employee marketing agency could pay $300 monthly due to greater liability risks and valuable property.

Property value

Expensive equipment and inventory increase premiums since insurers must cover replacement costs. For instance, a dental office with $200,000 in specialized equipment costs much more to insure than a home-based graphic designer with basic computers.

Coverage limits

Higher coverage limits increase your premium but provide better financial protection during major claims. The change is usually proportional, though exact amounts depend on your industry and location.

How to Get Cheap BOP Insurance

You can cut your BOP insurance costs without sacrificing financial protection through smart shopping and simple changes:

1
Choose the right coverage limits
Don't over-insure or under-insure your business. Work with an agent to determine appropriate liability limits and property coverage amounts that protect your assets without paying for unnecessary coverage.
2
Shop around with multiple insurers
Getting quotes from at least three insurers can reveal substantial price differences for the same business profile and coverage limits.
3
Increase your deductible
Raising your deductible can reduce premiums substantially. Just make sure you can afford higher out-of-pocket costs if you need to file a claim.
4
Bundle your business policies
Most insurers offer discounts when you combine BOP with other types of business insurance, like workers' compensation, commercial auto or professional liability insurance. Bundling usually costs less than purchasing separate policies.
5
Maintain a clean claims record
Avoiding claims keeps your rates low over time. Even one claim can increase your premiums for several years, so focus on prevention through proper safety protocols and employee training.
6
Install security and fire protection systems
Adding burglar alarms, security cameras, sprinkler systems and fire detection equipment helps prevent losses and can qualify for premium discounts.
7
Create formal safety programs
Conduct regular employee training sessions and document your safety policies and procedures. This will show insurers that you're serious about safety and can lower premiums.

Average Cost of BOP Insurance: Bottom Line

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.

BOP Insurance Cost: FAQ

MoneyGeek addressed frequently asked questions small business owners have about BOP insurance costs:

What's the minimum cost for BOP insurance?

Most insurers have minimum annual premiums, even for low-risk businesses. We found drone businesses pay around $25 monthly, but many insurers won't go below their floor price. Always ask about minimums when shopping around.

How much does BOP insurance cost for restaurants specifically?

Restaurant BOP costs vary quite a bit depending on your setup. A simple fast-casual spot pays less than a full-service restaurant with extensive kitchens and bar service, mainly because there's more that can go wrong.

Does bundling BOP with other business insurance save money?

Yes, bundling your BOP with other business policies usually saves money compared to buying everything separately. Most insurers offer package deals when you combine BOP with workers' comp, commercial auto or errors and omissions.

Why do BOP insurance costs vary so much between states?

It comes down to lawsuits and regulations. States where people sue more often and courts award bigger settlements cost more to insure in. Business-friendly states with fewer lawsuits keep premiums lower.

How much more does BOP insurance cost if I've had previous claims?

Claims history substantially increases what you'll pay. The more claims you've filed, especially liability ones, the higher your premiums. That's why investing in good safety measures often pays for itself through lower costs.

What business information do I need to get an accurate BOP insurance quote?

Get your business basics ready: annual revenue, payroll, employee count, business address, your business operations, property values and any past claims. Having this information ready helps agents give you real quotes instead of ballpark estimates.

Can seasonal businesses get cheaper BOP insurance rates?

Some insurers will cut your rates during your off-season, but don't expect this everywhere. Your empty restaurant or retail shop is still a target for break-ins, and a pipe burst doesn't wait for you to reopen.

How We Determined the Average Cost of BOP Insurance

We gathered real quotes from 10 major insurers across 79 industries and all 50 states using our standard business profile:

3 total people (owner plus two employees)
$150,000 annual payroll
$300,000 annual revenue
$1 million per occurrence and $2 million aggregate liability limits
$5,000 business property coverage

This profile represents typical small businesses needing BOP coverage. We focused on insurers with national reach and online quote systems, ensuring these rates are available to you. Your costs will vary based on your specific operations and claims history, but you'll have realistic pricing baselines for comparison shopping.

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

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BOP Insurance Cost