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Key Takeaways

Factors that can affect your BOP insurance costs may include: the state your business is in, your industry, chosen policy limits, deductible amount and/or your number of employees.
You may be able to save on BOP insurance costs by raising your deductible, bundling policies, maintaining a good credit history and managing your risks.
You can pay for your BOP insurance premium in full at the start of the policy period or through monthly payments.

What Factors Affect Business Owners’ Policy Cost?

Insurance companies consider many different factors when determining your price for a Business Owner’s Policy, including:

Industry and Risks

If your business is in an industry with high risks, you can expect to pay more for business insurance. This is because your company is exposed to more risks, so you may need to have more liability or property coverage to help protect your business.

Property Value

The value of your business property can affect the cost of your BOP policy. Insurers consider all the property your company owns to determine your coverage limits and ensure you’re fully covered.

Business Location

Companies in populated areas may face a higher risk of crime or vandalism, which can increase insurance rates. In addition, if your business is in an area that experiences extreme weather, your insurance costs can be affected.

Coverage Needs

Some companies may need additional coverage. Bundling with other coverages, like commercial auto or professional liability insurance, may help save money on insurance costs.

Number of Employees

Many insurers factor your employee count into your cost for insurance. You may also need to get workers’ compensation insurance. Typically, the larger your team, the higher your insurance cost will be.

Deductible

The deductible is the amount you’ll pay out of pocket before your insurance coverage is activated. A policyholder may have a lower insurance cost by increasing their BOP deductible.

How Does My Industry Affect My Business Owner's Policy Insurance Cost?

Insurance premiums will often vary between industries because each industry faces different risks. You can learn what certain industries pay on average for a BOP with The Hartford in the table below.

Industry	Average Monthly Premium for a Business Owner’s Policy**
Business Consulting	$86
Accountants	$85
Engineering	$107
Retail Stores	$152
Restaurants	$413
Manufacturers	$115
Photographers	$72
Beauty Salons	$113
Barbershops	$110

What Does BOP Insurance Cost in My State?

Insurance companies consider the state your business is in when determining your cost for a BOP. Depending on your location, insurance may cost more because you could be at a higher risk of property damage from issues like severe weather. In addition, some states have laws about required insurance coverages. For example, your state may require you to have commercial auto insurance or workers’ compensation insurance in addition to a BOP. This can increase your insurance costs.

The best way to find out how much a BOP will cost is to get a quote.

Remember:

Increasing your policy’s deductible may lower your premium, but it means you’ll have a higher out-of-pocket expense if you file a claim.

How To Save on Business Owner’s Policy Costs

If you’re ready to get a BOP, consider these ways to save money while getting the protection you need:

Bundle your policies
Pay your premium up front annually
Raise your deductible
Manage your risks

Getting a BOP is a way to save on your overall insurance protection, too. Because it combines general liability insurance, commercial property insurance and business income insurance into one policy, you're getting three types of coverage with a single premium.

Common Questions About BOP Insurance Costs

What Is a BOP?

A BOP combines three essential types of coverage into a single, convenient policy:

General liability insurance to help protect your business from claims it caused bodily injury or property damage to someone else's belongings.
Commercial property insurance to help protect the owned or rented building, tools, equipment, inventory and supplies you use to operate your small business.
Business income insurance, also known as business interruption insurance, to replace lost income if you can't operate because of a covered property loss.

What Is the Average Cost of a Business Owner’s Policy?

The average cost our customers pay for a Business Owner’s Policy is $1,019 annually, or about $85 a month.³ You may pay a different amount than the average because you have unique small business insurance needs. The best way to find out how much your insurance will cost is to get a quote.

What Factors Influence the Cost of BOP Insurance?

Insurance companies use several different factors to determine your cost for business insurance. What you’ll pay for BOP insurance can depend on factors, like:

The type of insurance you need
Your claims loss history
What industry you’re in
The number of employees you have
Your payroll
Your location

What Is a BOP Insurance Premium?

Your BOP insurance premium is the cost you’ll pay for coverage. Insurance premiums typically can be paid in full at the start of your policy period or through monthly payments. In exchange for your premium payment, your insurance company agrees to help protect your small business against covered financial losses.

How Much Is a $2 Million Insurance Policy for a Business?

The Hartford's small business customers pay an average of $1,434 a year for a $2 million insurance policy.** This is about $120 a month. It's important to remember insurance costs vary because every business is unique. Insurers also use different factors to determine costs. So, your price for a $2 million insurance policy may be different than the average. Get a quote to get your business' specific price.

Get more answers to Business Owner’s Policy frequently asked questions.

** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.

Additional disclosures below.