BOP insurance cost

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.