A Business Owners Policy typically costs $500 to $3,500 per year for most small businesses, with a national median near $1,200 annually (roughly $100/month). Restaurants, contractors, and higher-risk trades often pay $2,500–$6,000+. Your final premium depends on industry class, revenue, location, property value, and chosen limits. Who this is for: Small-to-mid-size business owners comparing BOP quotes or trying to budget for commercial insurance.
TL;DR — Key Takeaways
- Most small businesses pay $500–$3,500/year for a BOP; the median is roughly $1,000–$1,500/year.
- A BOP bundles General Liability + Commercial Property + Business Interruption into one policy — usually cheaper than buying each separately.
- Industry class code is the single largest cost driver; a restaurant pays 3–5× more than a professional office of the same revenue.
- BOPs are typically available to businesses with under $5–10 million in annual revenue and operations within eligible SIC/NAICS classes.
- A BOP does not include Workers Compensation, Commercial Auto, Professional Liability, or Cyber — you'll need separate policies for those.
What Does a BOP Cover (and What Does It Cost to Get It)?
A Business Owners Policy is a packaged commercial policy that combines three core coverages:
| Coverage | What It Pays For | Typical Included Limit |
|---|---|---|
| General Liability (GL) | Third-party bodily injury, property damage, personal/advertising injury | $1M per occurrence / $2M aggregate |
| Commercial Property | Your building (if owned) or business personal property from fire, theft, wind, vandalism, etc. | Varies; set to replacement cost value |
| Business Interruption (BI) | Lost net income + ongoing expenses when a covered property loss forces a shutdown | 12 months of actual loss sustained |
GL is written on an occurrence form in a BOP — meaning a claim arising from an event that occurred during the policy period is covered regardless of when the claim is filed. Property is typically written on a special-form (open perils) basis, covering all causes of loss not specifically excluded.
BOP Cost by Industry — What Businesses Actually Pay
Rates vary sharply by class code. The table below reflects realistic annual premium ranges for a small business with $500K–$1.5M in revenue and $250K–$500K in business personal property.
| Industry / Trade | Annual BOP Cost (Low) | Annual BOP Cost (Typical) | Annual BOP Cost (High) |
|---|---|---|---|
| Professional / Consulting Office | $500 | $900 | $1,500 |
| Retail Store (non-food) | $700 | $1,400 | $2,800 |
| Hair Salon / Barbershop | $600 | $1,100 | $2,000 |
| Auto Parts Retail (no repair) | $900 | $1,800 | $3,500 |
| Restaurant / Café | $1,800 | $3,200 | $6,000 |
| Light Contractor (handyman, painter) | $1,200 | $2,500 | $4,500 |
| Convenience Store | $1,500 | $3,000 | $5,500 |
| Wholesale Distributor | $1,000 | $2,200 | $4,000 |
| Medical / Dental Office (premises only) | $700 | $1,300 | $2,500 |
Important: These ranges are illustrative, not rate filings. Actual premiums are carrier- and state-specific and depend on underwriting factors detailed below. Some classes (e.g., bars with live entertainment, contractors with roofing work) may not qualify for a BOP and require a commercial package policy (CPP) instead.
What Drives Your BOP Premium?
Underwriters weight several factors when pricing a BOP. Understanding these lets you make decisions that lower your cost.
1. Industry / SIC Class Code
Your business class code is the dominant variable. A retail florist and a restaurant occupy the same square footage but face radically different liability and property loss histories — so carriers file different base rates for each.
2. Revenue and Payroll
General liability premium is usually based on gross sales or, for some classes, payroll. Higher revenue = more exposure = higher GL component.
3. Location and Building Characteristics
- State and zip code affect property rates (coastal wind, wildfire, hail, crime index).
- Construction type (frame vs. masonry) and year built affect property loss probability.
- Sprinklered vs. non-sprinklered can move property rates 15–30%.
4. Property Value Being Insured
The commercial property component is rated on the insured value. Underinsuring to save premium can trigger a coinsurance penalty at claim time if you carry less than the required percentage (typically 80–90%) of replacement cost value.
5. Coverage Limits and Deductible
- Raising the GL aggregate from $2M to $4M via an endorsement adds cost but less than doubling it.
- A higher property deductible ($2,500 vs. $500) can reduce property premium 10–20%.
6. Claims History
Carriers typically review 3–5 years of loss runs. Multiple GL or property claims signal elevated risk and trigger surcharges or declinations. A clean loss history is a meaningful credit.
7. Additional Endorsements
Common add-ons that increase premium: - Data breach / cyber endorsement (limited sublimit) - Equipment breakdown - Hired and non-owned auto - Employee dishonesty
BOP vs. Separate Policies — Is the Bundle Worth It?
For eligible businesses, a BOP is almost always more cost-efficient than buying GL and property separately.
| Approach | Estimated Annual Cost (Small Retail Example) |
|---|---|
| BOP (GL + Property + BI bundled) | $1,200–$1,800 |
| Standalone GL only | $900–$1,400 |
| Standalone Commercial Property only | $600–$1,000 |
| Standalone Business Interruption only | $400–$700 |
| Total if bought separately | $1,900–$3,100 |
The savings come from carrier packaging credits and a single policy fee. The BOP also simplifies administration — one renewal date, one carrier, one certificate to manage.
How to Get a BOP Quote in 5 Steps
- Gather your business profile: Legal entity name, address(es), year in business, SIC/NAICS code, annual gross revenue, full-time and part-time employee count.
- Document your property: Square footage, building ownership vs. lease, replacement cost of contents and equipment, any specialty equipment (cold storage, machinery).
- Pull your loss runs: Request 3–5 years of loss run reports from your current carrier. Brokers need these to place coverage competitively.
- Decide on limits and deductibles: Start with $1M/$2M GL and replacement cost property. Consider whether you need higher limits for a contract requirement or landlord agreement.
- Compare at least 2–3 carrier quotes: A BOP-eligible risk is competitive; carriers price differently by class and zip. An independent broker submits to multiple markets simultaneously.
Real-World Example: A Brooklyn Café
Business: Family-owned café in Brooklyn, NY. 1,200 sq ft leased space. $480,000 gross annual revenue. 4 full-time, 3 part-time employees. No prior claims.
Property insured: Business personal property (equipment, fixtures, inventory) valued at $85,000 on a replacement cost basis. No building coverage (tenant, not owner).
Coverage selected: - GL: $1M per occurrence / $2M aggregate - Business personal property: $85,000 replacement cost, $1,000 deductible - Business interruption: 12-month actual loss sustained, 72-hour waiting period
Illustrative BOP premium: Approximately $2,800–$3,400/year from a mid-market admitted carrier writing in NY.
Why higher than the office? Restaurants have elevated GL exposure (slip-and-fall, food-borne illness, liquor liability if applicable) and higher property fire risk from kitchen equipment. New York City urban location also carries higher property rates.
What the BOP did not include: Workers Compensation (required separately in NY for any employee), Commercial Auto (owner's personal vehicle used for deliveries), and Professional Liability (not applicable here).
This example is illustrative only. Actual premiums depend on individual underwriting, carrier selection, and current market conditions.
Frequently Asked Questions
How much does a BOP cost per month for a small business? Most small businesses pay $40–$290/month for a BOP, with the median near $80–$125/month. Low-risk professional offices often land under $60/month; restaurants and light contractors typically pay $150–$350/month or more.
Is a BOP cheaper than buying general liability alone? Usually yes. Carriers offer a packaging credit when you bundle GL, property, and business interruption into a BOP. For most small businesses, the BOP costs less than standalone GL plus standalone property purchased separately.
What is the minimum revenue to qualify for a BOP? There is no minimum revenue requirement. However, most BOP programs cap eligibility at roughly $5–$10 million in annual revenue, beyond which carriers typically require a commercial package policy (CPP) with individually rated lines.
Does a BOP cover professional mistakes or errors? No. A BOP's general liability covers bodily injury and property damage to third parties, plus personal and advertising injury. It does not cover financial losses arising from professional advice or services — that requires a separate Professional Liability (Errors & Omissions) policy.
Can I add cyber coverage to a BOP? Many carriers offer a limited data breach / cyber liability endorsement within a BOP for an additional premium of $100–$400/year. This sublimit (often $50K–$100K) is not a substitute for a standalone cyber policy if you store sensitive customer data or process payments extensively.
Will filing a claim raise my BOP premium? Possibly. Carriers review 3–5 years of loss history at renewal. A single small claim may not affect your rate, but multiple claims or a single large claim often result in a surcharge, non-renewal, or movement to a non-standard market.
Does a BOP cover my business vehicle? No. Commercial Auto is a separate policy. A BOP may include a "hired and non-owned auto" endorsement for liability when employees use personal vehicles on company business, but it does not cover physical damage to those vehicles.
How do I lower my BOP premium? Raise your deductible, implement risk controls (alarm systems, sprinklers, employee safety training), maintain a clean loss history, and shop multiple carriers through an independent broker. Bundling your BOP with other commercial lines (workers comp, commercial auto) at the same carrier sometimes yields a multi-policy discount.
Why Get Your BOP Through Morrow?
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Independent broker, multiple carrier markets. Morrow is not captive to one insurer. We submit your BOP application to several admitted and E&S carriers simultaneously — so you see competitive options, not a single take-it-or-leave-it quote. [Morrow to confirm: list of appointed carriers.]
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Fast certificate (COI) turnaround. Landlords, general contractors, and clients frequently require proof of insurance before work begins. Morrow issues certificates of insurance the same business day in most cases — no waiting for a carrier call center.
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Industry-specific placement. Whether you're a restaurant, retail shop, or service contractor, we know which carriers have appetite for your class code and which ones price it competitively. We don't try to force a difficult class into a program that doesn't want it.
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Claims advocacy. When a covered loss hits, Morrow works on your side — not the carrier's. We help document the claim, communicate with the adjuster, and push for a fair and timely resolution.
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Full commercial lines capability. Your BOP is the foundation. When you need Workers Comp, Commercial Auto, Cyber, or an Umbrella, Morrow can layer those in — often with a multi-line credit and simplified renewal management.
Get a BOP Quote
Ready to see your actual number? Get a Business Owners Policy Quote → Or call us at [Morrow to confirm: phone number] — licensed commercial insurance advisors, no automated hold queue.
Trust strip: Morrow (Afthonea Inc., DBA Morrow) is a licensed independent insurance agency. [Morrow to confirm: licensed states and license numbers.] We place coverage with admitted and surplus lines carriers rated A- (Excellent) or better by AM Best. [Morrow to confirm: carrier roster.] [Morrow to confirm: Google/review platform rating and review count.]
Related Pages
- Commercial Insurance Overview — parent pillar
- General Liability Insurance Cost — standalone GL pricing
- Commercial Property Insurance — property coverage deep-dive
- Business Interruption Insurance Explained — what BI pays and what it excludes
- BOP vs. Commercial Package Policy — when you outgrow a BOP
- Restaurant Insurance — industry-specific guidance
Author: [Morrow to confirm: licensed P&C producer name, CIC or CPCU credential preferred] Published: June 2026 | Last Updated: June 2026
Sources: - Insurance Information Institute (III) — Business Owner's Policy (BOP) - National Association of Insurance Commissioners (NAIC) — Commercial Lines Policy Forms and Filing - NFIB Small Business Insurance Survey (most recent available) - ISO Commercial Lines Manual — BOP program eligibility and rating guidelines - State Department of Insurance rate filings (state-specific; [verify state] for jurisdiction-level data) - U.S. Bureau of Labor Statistics — industry revenue benchmarks used for illustrative examples