Neal Fusco
Quick Answer: A business owners policy (BOP) typically costs $500 to $3,500 a year for a small business, or roughly $40 to $300 a month. Low-risk offices and retail shops sit at the bottom of that range; restaurants, contractors, and businesses with more foot traffic or equipment sit higher. These are estimates only; your real premium depends on your industry, revenue, location, and claims history, and is confirmed by a producer.
What is a business owners policy (BOP)?
A business owners policy bundles general liability insurance and commercial property insurance into one policy, usually with business income coverage added in. It is built for small and mid-size businesses that own or lease a space, carry equipment or inventory, and want the two most common coverages in a single, simpler package instead of buying them separately.
Carriers price a BOP as one policy, which is typically cheaper than buying general liability and property coverage on their own. Not every business qualifies. Higher-hazard operations like large trucking fleets or heavy manufacturers usually need coverage built outside a standard BOP.
How much does a BOP cost?
Most small businesses pay between $500 and $3,500 a year for a BOP, or about $40 to $300 a month. Where a business lands in that range comes down to industry risk, annual revenue, square footage, building construction, location, and claims history.
| Business type | Typical annual BOP range |
|---|---|
| Professional office (consulting, accounting, real estate) | $500 - $1,200 |
| Retail shop or boutique | $750 - $2,000 |
| Salon or personal care business | $800 - $2,200 |
| Restaurant or cafe | $1,500 - $3,500 |
| Small contractor or trade business | $1,200 - $3,000 |
Estimates only. Exact premium depends on revenue, exposures, limits, location, and loss history, and is confirmed by a producer during quoting.
What does a BOP cover?
A standard BOP combines three coverages: general liability for third-party injury and property damage claims, commercial property for your building, equipment, and inventory, and business income coverage that replaces lost income if a covered loss shuts you down temporarily. Many carriers let you add certificates of insurance, signage, and equipment breakdown coverage on top.
A BOP does not include everything a business needs. It typically excludes workers compensation, professional errors, commercial auto, and employment-practices claims, so most businesses pair it with additional policies rather than relying on the BOP alone.
What is not included in a BOP, and what should you add?
Because a BOP is a bundle of just two core coverages, several common exposures sit outside it by default:
| Gap a BOP leaves | Coverage that closes it |
|---|---|
| Employee injuries on the job | Workers compensation |
| Vehicles owned or used for business | Commercial auto insurance |
| Wrongful termination, harassment, discrimination claims | Employment practices liability (EPLI) |
| Claims that exceed your GL or property limits | Commercial umbrella insurance |
Is a BOP right for your business, or do you need more?
A BOP fits most small offices, retail shops, salons, and service businesses that lease or own a modest space and do not carry heavy equipment or a large workforce. If your business has significant payroll, owns commercial vehicles, or handles higher-hazard work like senior or group home care or mobile food service, a BOP is usually the starting point, not the whole program. A commercial lines specialist can review your operation and tell you in one call whether a BOP covers you or whether you need it paired with other coverage.
How Pro Insurance Group helps
We are an independent brokerage, so we are not selling you one carrier's BOP. We shop 20+ carriers to find the combination of general liability, property, and business income limits that fits your operation, then package in general liability, workers comp, or umbrella coverage where your business needs more than a standard BOP provides. There are no broker fees, and we handle the paperwork end to end.
Frequently asked questions
How much does a BOP cost per month?
Most small businesses pay about $40 to $300 a month for a BOP, depending on industry, revenue, location, and claims history. Low-risk offices and retail shops sit at the low end; restaurants and contractors sit higher. These are estimates only, confirmed by a producer during quoting.
What is the difference between a BOP and general liability insurance?
General liability alone covers third-party injury and property damage claims. A BOP bundles that same general liability coverage with commercial property and business income coverage, so it protects your building, equipment, and lost income too, usually for less than buying the coverages separately.
Does a BOP cover workers compensation?
No. A business owners policy does not include workers compensation. Workers comp is a separate, state-mandated policy that covers employee injuries on the job, and most states, including Illinois, require it once you have employees.
Can a home-based business get a BOP?
Some carriers offer BOPs to home-based businesses, though many home-based operations are better served by a business owners endorsement on a homeowners policy or a smaller commercial package. A producer can review your setup and recommend the right fit.
Is a business owners policy required by law?
No. A BOP is not legally required the way workers compensation is. Many landlords, lenders, and client contracts require proof of general liability and property coverage, which is why a BOP is the standard starting point for most small businesses even though it is not mandated by law.
Reviewed by Neal Fusco, VP Commercial Lines
25+ years specializing in commercial and management liability risk across Illinois and 40+ states.