How much does a business owners policy (BOP) cost?

In 2023, the national median monthly cost of a business owners policy (BOP) was $63 for new Progressive customers. The average premium was $106 per month.

The lower median price suggests that a few expensive outliers increase the average cost. Most buyers can expect to pay closer to the median rate.

Your premium will depend on specific features of your business. Learn what qualities affect your exposure and BOP insurance cost.

What is the average cost of BOP insurance?

New Progressive BOP customers pay an average of $113 per month or $1,351 annually.

A business owners policy contains two main coverages:

  1. Liability: Includes third-party claims, such as bodily injury, property damage, and advertising injury. These are the same coverages you'd find in a general liability policy.
  2. Property: Covers commercial buildings and other moveable property that a business owns and uses.

This package policy can lower a customer's average insurance cost compared to purchasing these coverages separately.

What factors affect your business owners policy cost?

Factors that influence your business owners policy include:

Learn more about what business owners policies can cover with our BOP coverages guide.


Businesses in riskier fields can expect to pay more for BOP insurance. For example, a construction company using tools and heavy equipment might have a higher rate than an event planning agency that’s exposed to less risk.


Your city and state might affect your BOP insurance cost. Businesses in highly populated areas with increased claims could pay more for coverage.

Business Size

Business owners policies are available for small enterprises. More employees usually mean increased risk exposure. The more employees you have, the higher your BOP cost can be.

Years in business

Business tenure can affect your BOP insurance cost. Whether you run a new start-up or a seasoned business, your years of experience can impact your rate.

Property value

The size and age of your business premises affect your BOP insurance cost. Larger, more expensive buildings could lead to a higher premium. Insurance companies also consider the value of your business personal property, such as computers, furniture, and inventory.

For example, if your property is worth $1 million, you will probably pay more than a business with property worth $500,000.

Coverage needs

Businesses can add coverage to their BOP with endorsements. Common endorsements include cyber liability, utility services, tools and equipment, employment practices liability, and more.

Learn more about what business owners policies can cover with our BOP coverages guide.

Claims history

A company with a claims history typically pays more for BOP insurance than one that’s accident-free. Insurers use this information to calculate the likelihood of a future claim.

How to save on BOP insurance

There are several ways to save on BOP insurance. You can:

  1. Adjust coverage limits and deductibles: Businesses can change their policy’s limit and deductible to save on insurance costs. A higher deductible can lower your monthly rate — but be advised that you’ll have to pay more out of pocket if an accident occurs.
  2. Minimize your business’s risks: Insurance companies consider your business’s safety. You can lower your property risk by keeping it well lit, conducting regular maintenance, and installing security cameras. Decrease your liability risk by establishing equipment guidelines and regularly training your employees.
  3. Work with an insurance expert: Insurance professionals can advise you on endorsements and savings opportunities that are best for your business. If you’re starting a new policy or renewing an existing one, it’s helpful to review coverage options with an agent.

An insurance quote is the best way to find out your cost and payment options for a business owners policy.

Contact Progressive Commercial for a BOP insurance quote

Get a BOP insurance quote to learn what you'll pay for a business owners policy. You can start a quote online or call us for more information.

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