You may sometimes “bop” to your favorite tune (hey, we’re not here to judge), but in the insurance world, a BOP is something else entirely. A BOP, or Business Owners Policy, bundles general liability insurance and commercial property insurance into a single, convenient policy. That’s worth boppin’ to, right? But how much does BOP insurance cost? Well, a BOP is tailored to your specific needs, so BOP insurance costs will depend on a few key factors related to your business.
How much does BOP insurance cost?
For a low premium, you can protect your business from the financial consequences of expensive third-party liability claims, property loss or damage, equipment breakdowns, and even unforeseen business closures. Since every type of business incurs different types of risks, BOP insurance costs can vary by industry. Below we offer the median monthly cost of BOP insurance across 10 industries to help you get a better idea of what your business will pay.
BOP Coverage Cost
What factors influence BOP insurance costs?
We determine BOP insurance costs by looking at what you do, where you do it, and how it gets done. Here are the main factors that determine the costs of your BOP insurance policy.
Type of business
Some jobs are much riskier than others. For example, a carpenter spends the day working with power tools, saws, and nails. Carpenters face higher risks on a daily basis than a DJ who works with digital tracks and is less likely to damage other people’s property, for example. The type of business you have and the inherent risks involved can affect how much your BOP insurance costs. As a general rule, the more risk, the higher the cost.
If you own a coffee shop on a busy corner of Main Street, chances are lots of people walk in and out of your shop every day. More people means a greater risk of coffee spills and slip-and-fall accidents, which could influence the likelihood of a bodily injury claim being filed against your business.
Being in a densely populated area could also impact your BOP insurance costs. However, other factors can lower risks and monthly premiums, like being close to a fire station. To calculate your BOP insurance costs, we will look at the business location, whether other tenants occupy the building, building construction, and other factors.
Everyone makes mistakes from time to time, but one person making one mistake is a lot less risky than ten people making one mistake each! Larger teams mean a higher risk of accidents, so the size of your crew is also a factor that impacts the cost of your BOP insurance.
Any business entity that’s been operating for a while may have had prior claims. A claims history is often a good predictor of a business’s future risk, and this will be reflected in BOP insurance costs. For example, all things being equal, a landscaper who has a history of filing claims for damages done to customers’ property is going to pay a higher premium than a landscaper who has never had a claim.
Coverage limits for BOP insurance start at $300,000 for general liability insurance, $250,000 for building coverage, and $50,000 for business contents. However, you can increase your coverage up to $1 million for general liability insurance and building coverage and up to $500,000 for business contents. Doubling your coverage limit doubles your protection. But don’t worry — doubling your coverage doesn’t mean your BOP insurance premiums double.
Depending on what type of business you have, you may need additional coverage that you can add to your BOP, such as hired & non-owned auto insurance or equipment breakdown coverage. This will increase your BOP insurance cost, but your business will be better protected.
What does BOP insurance cover?
BOP insurance bundles general liability insurance and commercial property insurance, which also includes business interruption coverage.
General liability insurance protects your business from the financial consequences of third-party claims of bodily injury, property damage, and personal and advertising injury. For example, if you run a janitorial company and an employee spills water at a job site, causing a passerby to slip and fall, general liability insurance can cover the associated medical costs.
Commercial property insurance protects your owned business property from accidental loss or damage, including the building and the contents inside. For example, if you own a graphic design studio and a fire ruins your computer equipment, commercial property insurance can cover the cost to replace it. And, while you are making repairs to get your business up and running again, business interruption coverage can cover your continuing expenses and lost income until you’re back in business.
Jam with your new favorite BOP
You don’t have to be a DJ or a dance instructor to enjoy Thimble’s BOP. For just one monthly premium, BOP insurance can protect your business from general liability claims and commercial property damage claims.
Enjoy the simplicity and flexibility of Thimble’s BOP insurance policy before the other guys even call you back. Click “Get a Quote” or download the Thimble mobile app, answer a few questions, and get covered in minutes. It’s that easy — it’s Thimble.
BOP cost FAQs
What additional coverage is available under a BOP?
In addition to general liability insurance, commercial property insurance, and business interruption insurance, you can also add optional equipment breakdown insurance and hired and non-owned auto coverage policies to your BOP.
What other coverage might you need besides a BOP?
If you work in consulting, you may want to consider getting professional liability insurance that protects you against the financial consequences of mistakes made in your line of work. Business Equipment Protection can provide additional protection if you rely on expensive equipment for your products and services. If you have employees, most states may require you to carry workers’ compensation insurance to protect your business from the financial consequences of an employee incurring a workplace injury.
How can you keep BOP insurance costs down?
Fewer business risks mean lower BOP insurance costs. To keep BOP insurance costs down, find ways to make your business safer, like moving to a building that offers more fire protection and providing safety training for your employees to decrease the likelihood of third-party bodily injury claims.
How do I show proof of BOP insurance?
Thimble allows you to generate as many Certificates of Insurance (COI) as you need to show that you have coverage. You can download your COI in seconds online or from the Thimble app.