770-704-5000  |  877-823-1070 ☰ ˟
770-704-5000 877-823-1070
Logo
  • Home Page
  • Our Agency
    • Our Locations
    • Contact UsImage of right arrow
      • Marietta Office
      • Canton Office
    • Employee Directory
    • File a Claim
  • Get A Quote
    • Auto Insurance Quote
    • Commercial Auto Insurance Quote
    • Homeowners Insurance Quote
    • Life Insurance Quote
    • Motorcycle Insurance Quote
    • Watercraft Insurance Quote
  • About Us
    • About
    • Testimonials
    • Work for Us!
    • Privacy Policy
  • Contact
Home > Blog > How Much is a Business Owners Policy?
MONDAY, JULY 12, 2021

How Much is a Business Owners Policy?

Business owners policies (BOPs) are hard to pin down price wise since there are so many factors that go into the cost of the insurance. Depending on the size of your business and the amount of coverage required, you could pay anywhere between $350 and $2,000 a year. On average, businesses pay about $1,200 a year. 

Factors that Affect Your BOP 
The main factors that affect the cost of your BOP include: 

  • Location 

  • Size of the business 

  • Industry 

  • Claims historywoman standing outside flower business 

  • Credit score of the insured 

  • Coverage limits 

  • Deductible 


Different industries will pay different prices for the same coverage due to the nature of the industry. BOPs are generally tailored for small, low-risk businesses. If your industry has a high rate of liability claims, for example, you will likely have to pay higher premiums for liability coverage. 

Aspects of your company are also considered when calculating your BOP premiums. Businesses with a long list of claims will pay more for coverage, since they’re likely to file another claim. If you, as the business owner, have a poor credit score, you could also look at paying more for a BOP. Before starting a business, make sure to build your credit by paying off debts and paying bills on time. 

Additional Coverage for a BOP 
The price of BOPs vary so widely because there are many types of coverage you can add. A basic BOP covers: 

  • General Liability: General liability insurance covers accidents and acts of non-professional negligence. It can provide compensation for bodily injury and property damage that occurs as a result of everyday business operations. 

  • Property Insurance: Commercial property insurance covers the physical building owned by the business. It provides compensation if the business’ property is lost or damaged due to fire, smoke, lightning, wind, hail, vandalism and more. 


Bundling policies in a BOP can save money compared to purchasing the coverages separately. For general liability alone, most businesses pay an average of $300 to $600 a year. Average businesses pay between $1,000 and $3,000 for every $1 million of commercial property insurance. 

But you can also add insurance to your BOP. It allows your business extra protection, but it also means higher premiums. Common additional coverages include: 

  • Commercial Auto Insurance covers vehicles owned or used by the business for work purposes. 

  • Professional Liability covers claims related to professional negligence. 

  • Employment Practices Liability covers claims relating to employment practices.

 

Posted 12:09 PM

Tags: business owners policy
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021

  • homeowners insurance(4)
  • auto insurance(4)
  • business insurance(3)
  • boat insurance(3)
  • life insurance(2)
  • motorcycle insurance(2)
  • builders risk insurance(1)
  • cyber liability insurance(1)
  • professional liability insurance(1)
  • jewlery insurance(1)
  • home insurance(1)
  • specialty insurance(1)
  • workers compensation(1)
  • commercial general liability(1)
  • commercial auto(1)
  • renters insurance(1)
  • business owners policy(1)
  • flood insurance(1)
  • high value home insurance(1)

View Mobile Version
Logo
social icon social icon social icon social icon social icon
Quick Links
Home Our Products Customer Service Payment Options Report a Claim
About Us Refer A Friend Our Carriers Blog Contact Us
Locations
Marietta Office 742 Roswell Street SE
Marietta, GA 30060

Canton Office 57 Reinhardt College Pkwy
Suite 300
Canton, GA 30114

© Copyright. All rights reserved.
Powered by Insurance Website Builder