A business owner's policy (BOP) bundles commercial property and general liability policies at a discount, making it an affordable option for small businesses. The average premium for a BOP is about $57 per month.
On average, a business owner’s policy costs $57 per month, or about $684 annually. Almost two-thirds (64%) of policyholders can expect to pay under $80 for their business owner's policy.
Our figures are sourced from the median cost of policies purchased by TechInsurance customers. The median provides a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
Most small businesses choose a $1 million / $2 million business owner’s policy, with an average deductible of $500.
This means the policy has:
Startups with expensive equipment or a large office space should consider higher policy limits to match the potential cost of damaged property. Higher limits cost more, but you can also receive a higher payout on a claim.
Your coverage limits aren't the only thing that will influence the cost of your BOP.
Your insurance providers will also look at a number of other factors when calculating your insurance rates, such as your business's property value, number of employees, and location.
If your business experiences property damage, the property coverage of a BOP will help cover the cost of repair or replacement.
If you own or rent valuable commercial property, your business owner's policy's premiums will be higher compared to owning or renting a business property that is less valuable.
Your industry is another factor that will impact the cost of your business owner's policy rates. Generally, high-risk industries will have to pay higher premiums compared to low-risk industries.
For example, businesses in industries with a reputation for filing more claims, such as computer repair or other work involving other people’s property, will likely have higher liability insurance costs.
If your business is located in an area with a lot of foot traffic or where many customers pass through, your level of risk increases.
For example, a customer could trip in your store and injury themselves. Or someone could vandalize your business, leaving you with significant property damage. In both cases, a BOP would cover any resulting expenses, such as medical bills or defense costs.
It's simple: The more employees you have, the more opportunities there are for an accident to occur or a client to file a lawsuit.
Any claims you’ve made in the past on your BOP insurance will likely result in higher premiums in the future.
Purchasing a business owner’s policy is already one of the best ways to get affordable commercial insurance.
To save money, your company can also:
When you purchase liability coverage, you can pay your premium in monthly or annual installments. The annual premium often costs less than paying month by month.
Commercial property insurance premiums are higher for older buildings, larger properties, and buildings that lack recent updates. Other factors include the distance to the nearest fire department, access to fire hydrants, and the quality of the fire department.
An actual cash value policy insures items for their depreciated value (the value of the used item). A replacement cost policy covers the cost of a brand-new replacement item. Insurers charge more for replacement cost policies.
Companies with no previous claims can expect to have lower insurance rates. Small business owners can avoid claims with a risk management plan aimed at reducing bodily injury, theft, advertising injury, and other risks.
Your risk management plan should include:
Liability claims can be a threat to your tech business. If you’re accused of injuring someone, damaging property, or causing other harm it could easily turn into a costly lawsuit. That’s why it's important to have the right insurance protection in place to cover a range of potential liability risks.
TechInsurance is a trusted insurance expert for small businesses, including contractors and consultants, with extensive knowledge of the IT sector. We help business owners compare insurance quotes from top-rated carriers, buy policies based on your business needs, and manage your insurance coverage online.
By completing TechInsurance's easy online application today, you can compare free business owner's policy quotes from top-rated U.S. carriers. TechInsurance insurance agents are available to help answer any questions you may have on a BOP and additional coverages.
Once you find the right types of insurance policies for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance for your small business.
Insurance premiums vary based on the policies a business buys. View our small business insurance cost overview or find out the average costs for other common types of business insurance policies.