How Much Does Business Owners Policy Insurance Cost

 

How Much Does Business Owners Policy Insurance Cost?

If you own a small or mid sized business, you probably ask yourself the same question everyone else does:

“How much is this going to cost me every month?”

You know you need insurance. Your landlord asks for proof. Clients want certificates. You have equipment, inventory and a space you do not want to lose if something bad happens. At the same time, you do not want to throw money at a policy you barely understand.

That is where a Business Owner’s Policy, or BOP, comes in.

For clients of Savon Insurance Brokerage and visitors to savonusa.com, a BOP is often the foundation of a smart protection plan. It bundles several important coverages into one package and is usually more affordable than buying everything separately.

In this guide, we are going to talk only about one thing:

How much does business owners policy insurance cost, and what actually drives that price?

We will use real ranges and averages from current market data, but we will also go deeper. You will see why your business might pay less than the averages, more than the averages, and what you can do about it.

No sales pitch. No confusing jargon. Just a clear conversation, like you would have with a smart friend who knows insurance.

 

Quick Answer: Typical Business Owners Policy Insurance Cost

Let us start with the part everyone wants to know first: the ballpark numbers.

Different studies and insurers give slightly different averages, but they are all in the same basic range.

Recent data from Insureon shows that small businesses pay a median of about 57 dollars per month, or 684 dollars per year, for a business owner’s policy.

The U.S. Chamber of Commerce, pulling from the same dataset, notes that companies with fewer than 50 employees often pay between 40 and 115 dollars per month for a BOP, depending on their risk and coverage limits.

Other insurers report similar but slightly higher averages:

One comparison from Simply Business found that:

So if you want a quick, honest summary:

Many small businesses pay somewhere around 50 to 120 dollars per month
for a business owners policy insurance package, with a lot of them near 57 dollars per month.

But that is just the surface. Your cost depends on what you do, where you do it, what you own, and how much protection you choose.

To understand whether your own business owners policy insurance cost is fair, you need to know what you are actually buying and what pushes the price up or down.

 

What You Are Really Buying When You Pay For A BOP

Before you worry about whether 70 dollars a month is “too much,” it helps to be very clear about what you are getting in return.

A standard Business Owner’s Policy usually bundles three big coverages:

  1. General liability insurance
    Protects you if someone outside the business says you caused bodily injury, property damage, or certain types of personal or advertising injury.
    Example: a customer slips and gets hurt, or you accidentally damage a client’s property.
  2. Commercial property insurance
    Protects your building (if you own it), improvements you have made to a rented space, and your business personal property like equipment, inventory and furniture.
    Example: a fire, theft or vandalism damages your shop or equipment.
  3. Business interruption (business income) insurance
    Helps replace lost income and cover ongoing expenses if a covered property loss forces you to close or reduce operations for a while.
    Example: a fire shuts your restaurant for three months, but you still have rent and some payroll.

Buying those three coverages separately is usually more expensive and more complicated. A BOP puts them together in one package, which lets the insurer streamline underwriting and offer a better combined price.

So when you ask “How much does business owners policy insurance cost,” you are really asking:

“How much will I pay for a bundle of liability, property and income protection that could keep my business alive after a bad event?”

Once you see it that way, the prices we just reviewed start to look more reasonable. The key is making sure your price lines up with your risk.

 

The Big Factors That Decide Your Business Owners Policy Insurance Cost

BOP premiums are not random. Insurers look at a predictable set of things when they decide how much to charge.

Different carriers weigh the factors differently, but most lists look very similar:

Insureon, Embroker, and other providers all highlight these same core drivers when they explain how they set BOP rates.

Let us go through each one in plain language.

  1. Your industry: what you do each day

Some businesses are simply riskier than others.

For example, a restaurant with hot stoves, deep fryers and heavy foot traffic has more fire and liability exposure than a quiet bookkeeping office. A contractor working at job sites has more property and liability exposure than a freelance graphic designer working from home.

Cost guides and insurer examples put it this way:

Another data set from Simply Business shows median monthly BOP costs like:

So one of the first things an underwriter asks is “What does this business do?” That single answer places you in a risk “bucket” that sets the base tone for your business owners policy insurance cost.

  1. Business size: revenue, payroll and footprint

The bigger your operation, the more you usually pay. That does not mean big businesses are being punished. It just reflects the simple fact that:

Many insurers and cost guides mention revenue, total assets and headcount as core metrics when they talk about BOP pricing.

A one person consulting firm with a laptop and a small office will not pay the same as a retail store with 10 employees and a large inventory, even if both buy a BOP.

  1. Location: where you are on the map

Location affects cost in many ways:

For example, Tivly and other sources point out that retail stores in higher crime neighbourhoods can see higher BOP prices than similar stores in quieter areas, even with the same limits.

Similarly, restaurants in large urban centres with higher property and liability risks often pay more than restaurants in lower risk regions.

Insurers use your address and ZIP code to pull local risk data into their pricing. That is one reason you will see different quotes if you move even a few blocks, especially in dense cities.

  1. Property value: buildings, equipment and inventory

Your property coverage is a big part of your business owners policy insurance cost.

Insurers look at:

Average commercial property premiums on their own often land around 67 dollars per month for many small businesses, with a broad range depending on what you own.

Because a BOP includes property coverage, a business with:

If you understate your property values to “save money,” you can run into serious problems later. Many policies include coinsurance rules that penalize underinsuring. It is better to insure correctly and then look for savings in other areas, like deductibles or risk management.

  1. Coverage limits and deductibles

Coverage limits and deductibles are levers you control that have a direct impact on your BOP premium.

Guides like Gusto’s overview of BOPs explain that typical general liability limits sit in the 300,000 to 4 million dollar range, with many businesses choosing 1 million per occurrence / 2 million aggregate. Higher limits cost more, but they protect you from larger claims.

On the property side, companies like Hiscox offer deductibles anywhere from 500 to 10,000 dollars or more for building and equipment losses. Higher deductibles usually mean lower premiums, because you are agreeing to pay more out of pocket for each claim.

So when you look at your business owners policy insurance cost, ask:

You do not want to chase the cheapest premium if it means your coverage is so thin that a real claim still knocks you out.

  1. Claims history

Your claims history is like your business’s driving record.

If you have a long pattern of:

your BOP premium may be higher than someone with a clean record. Some carriers might even decide not to offer a BOP at all and steer you to a custom package, which can cost more.

On the other hand, a clean claims history can help you access better pricing and more options.

Cost guides across multiple insurers point out that past claims are one of the main reasons two similar businesses can see very different quotes for the same coverage.

  1. Extra coverages and add ons

A basic BOP covers general liability, property and business income. But many carriers give you the option to add more:

Every add on increases the premium a bit, but often at a much lower cost than buying a completely separate policy.

Sources like Tivly and Inszone show how BOP endorsements can tailor coverage to modern risks like cyber attacks and equipment breakdown, but they also note that each endorsement influences the overall cost.

This is where it helps to have a broker like Savon walk through your operations and contracts, so you only pay for extras you actually need.

  1. Safety measures and risk management

Sometimes, you really can save money by investing in safety.

Carriers often give better pricing or credits to businesses that can show:

Several cost guides mention that insurers consistently reward lower risk behaviour with better rates over time, and sometimes with upfront discounts.

This is not magic. If your business is less likely to have a claim, your business owners policy insurance cost can reflect that.

 

Cost Examples: How Much Might A BOP Cost For Different Businesses?

Every business is unique, but looking at a few real world examples can make the numbers feel more concrete.

Here are some sample ranges from current market data.

Retail shops

Tivly’s retail insurance guide notes that:

Ironpoint Insurance offers similar figures, listing 500 to 3,500 dollars per year as a typical BOP range for retail stores, again with location and traffic playing a big role.

Restaurants

Restaurants are riskier:

Simply Business reports a median BOP cost around 145 dollars per month for restaurants, or about 1,740 dollars per year.

Ironpoint lists restaurant BOP costs in a much wider band, from about 1,200 up to 10,000 dollars per year, influenced by things like liquor sales, hours and location.

A small, low risk cafe might be near the lower end. A high volume restaurant with alcohol and late hours might be toward the higher end.

Professional offices

Professional offices, like accountants, consultants or small law firms, usually sit at the lower end for BOP costs, because:

Ironpoint cites a BOP cost range of 400 to 2,500 dollars per year for professional services in many markets, depending on location and property values.

Hiscox provides sample BOP quotes for consulting firms with equipment limits of 10,000 to 35,000 dollars, with annual premiums in the 500 to 762 dollar range for those examples.

Cleaning services

Service businesses with low property values and moderate liability risk often have relatively low BOP costs.

Tivly notes that some cleaning services pay around 500 dollars per year for a BOP, especially if they are small, have a good record and carry modest limits.

Construction and contractors

Contracting and construction are at the higher end for BOP pricing, because:

Ironpoint lists BOP costs for construction and contracting businesses ranging from 1,500 up to 10,000 dollars per year, depending on trade, size and risk.

Some small contractors may still qualify for a basic BOP, while others move into more customized packages.

These are not quotes, just realistic snapshots. Your own numbers will depend on your details, but seeing these examples can help you understand where your business might sit on the spectrum.

 

How To Estimate Your Own Business Owners Policy Insurance Cost

You do not need an exact price to start planning. You just need an honest estimate.

Here is a simple way to think about it.

Step 1: Place your business on the risk ladder

Ask yourself:

Using the ranges we saw:

If your business looks very similar to these examples, your BOP cost is likely to be in the same neighbourhood.

Step 2: Look at your property values

Write down:

If you own very little, your property portion of the BOP will be small. If you have high inventory or expensive equipment, expect your business owners policy insurance cost to be on the higher side, even in a “safe” industry.

Step 3: Think about your income and what a shutdown would mean

Consider:

Business income coverage inside a BOP is priced based on how much income and how long of a period needs to be protected. Guides on small business insurance costs estimate that basic small business coverage, including a BOP for many firms, often lands between 500 and 1,000 dollars per year for smaller operations, but climbs with scale and complexity.

If you rely heavily on a single location, it is worth paying for enough business interruption coverage to ride out a realistic rebuild period.

Step 4: Factor in location and claims

Think honestly about:

If you have had multiple claims or operate in a higher risk zone, do not be surprised if your BOP quote comes in above the “average 57 dollars per month” number. That is not unfair pricing. It is simply reflecting higher expected losses.

Step 5: Talk to a broker for real quotes

Once you have a rough mental estimate, the next step is simple:

Savon’s social and online presence highlights that they are a virtual brokerage that compares multiple insurance companies for clients, not just one carrier.

That means they can tell you if your quote looks normal for your class of business, or if something seems out of line.

 

How To Lower Your Business Owners Policy Insurance Cost Without Leaving Gaps

You cannot control your industry or your location, but there are smart ways to manage your costs without just cutting coverage.

  1. Choose deductibles you can handle

Raising your property deductible from, say, 500 to 1,000 dollars can reduce your premium. Hiscox and other carriers show that higher deductibles typically lead to lower BOP costs because you absorb more of each loss.

Just make sure the deductible is still an amount you can realistically pay if you have a claim.

  1. Right size your property limits

You want enough coverage to rebuild and replace your property, but there is no reason to insure old or unused items at full value.

Work with your broker to:

Avoid going too low. Underinsuring can trigger penalties and leave you short in a major loss.

  1. Invest in safety and maintenance

Insurers reward lower risk behaviour over time. Good steps include:

Commercial property and liability cost guides repeatedly mention safety, security and good risk management as ways to earn better rates or avoid surcharges tied to frequent claims.

  1. Bundle smartly, not blindly

A BOP is already a bundle. But you might also have:

Some carriers offer multi policy discounts if you place several lines with them. In other cases, it can be cheaper to split coverage between carriers.

Savon can help you test both strategies, instead of assuming one carrier should handle everything.

  1. Review your policy as you grow

One of the main reasons small businesses are underinsured is that they simply do not update coverage as they grow.

Recent research shows that most small businesses carry some insurance, but only a small percentage feel fully prepared for risks. Many owners have not reviewed their policies in several years, even though their revenue and exposures have grown.

By checking in with your broker yearly, you can:

 

How Savon Insurance Brokerage Helps You Make Sense Of BOP Costs

Comparing a dozen websites and trying to self diagnose your business owners policy insurance cost can be overwhelming. That is exactly why brokers exist.

Savon Insurance Brokerage describes itself as a fully virtual insurance brokerage that helps people buy coverage online while still giving access to real humans who can explain options and compare companies.

Here is how that helps with BOP pricing.

They start with your business, not just a price

Instead of asking “How little can you pay,” a good broker starts with:

That conversation shapes what kind of BOP you need, and what limits make sense, before anyone throws numbers around.

They compare multiple carriers

Savon is not locked to one company. Their online presence and messaging emphasize that they compare multiple insurance companies for clients, so you get options.

That matters because:

You see a range of offers, not just one, which gives you a better sense of what a fair business owners policy insurance cost looks like for your situation.

They spot gaps and overlaps

When you only look at price, it is easy to buy:

Savon can look at your whole setup:

Then adjust so each policy does a clear job, with as few gaps or duplicates as possible.

They stay with you as you grow

Because Savon runs as a virtual brokerage, it is easier to schedule quick check ins, share documents and update coverage without long office visits.

That ongoing relationship is what keeps your BOP cost and coverage aligned with your actual business, not the version of your business from three years ago.

 

Frequently Asked Questions About Business Owners Policy Insurance Cost

Is 57 dollars per month really a realistic average for a BOP?

Yes, but with context.

Insureon and Forbes Advisor both report that the median cost of a BOP is about 57 dollars per month, or 684 dollars per year. That number comes from many thousands of small business policies.

Your own cost can be lower or higher depending on your industry, location, property values and limits. It is a helpful reference point, not a guarantee.

Why do some businesses pay over 100 dollars per month?

Higher premiums usually come from some mix of:

Progressive, Hartford and other carriers report average BOP costs closer to 80 to 141 dollars per month for their books of business, which tend to include more moderate and higher risk accounts.

Can I get a BOP for under 50 dollars per month?

In some cases, yes.

Simply Business and Insureon data show that around 40 to 44 percent of small businesses pay under 50 dollars per month for a BOP. These tend to be lower risk operations with modest property values and clean histories.

Does a cheaper BOP always mean worse coverage?

Not always.

Sometimes one carrier simply prices your industry or location more competitively than others. Sometimes you qualify for credits another business does not.

But if a quote is much cheaper, always ask:

A broker like Savon can help you compare “apples to apples.”

What is the best way to lower my BOP cost?

The most realistic ways to lower your business owners policy insurance cost are:

Cutting core limits too far usually saves a little money now and creates big problems later if you have a serious claim.

 

Final Thoughts: Cost Matters, But Context Matters More

So, how much does business owners policy insurance cost?

For many small businesses:

But the more important question is:

“Is my BOP cost appropriate for my risk, my coverage and my plans for this business?”

You want a policy that:

That balance is exactly what Savon Insurance Brokerage helps business owners find. By comparing multiple insurance companies, explaining options in simple English, and staying with you as your company grows, they turn “How much does business owners policy insurance cost?” into “Here is what makes sense for my business and my budget.”

If you are not sure whether you are paying too much, or you are worried you are not carrying enough, that is your signal to have a real conversation with a broker who will walk through your situation, not just hand you a number.

Your premium is just a number until the day something goes wrong.
After that, what matters is whether your business is still standing.

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