Updated 17 April 2026
Business Owner's Policy (BOP) Cost 2026: Is It Worth It?
A Business Owner Policy costs $57 to $221 per month in 2026. It bundles general liability, commercial property, and business interruption into one policy and saves most businesses 10 to 20 percent. But it is not right for everyone, and it has significant gaps.
Median BOP
$125/mo
Insureon 2026 data
Low end
$57/mo
Home-based, low-risk
High end
$221/mo
Restaurant, retail
Typical savings
10-20%
vs buying separately
What a BOP Includes
General Liability
Bodily injury to third parties, property damage you cause, advertising injury. $1M/$2M standard limits.
Commercial Property
Your building (if owned), equipment, inventory, furniture. Replacement cost or actual cash value.
Business Interruption
Lost revenue and extra expenses if a covered event forces you to temporarily close. Typically 12-month coverage.
BOP vs Individual Policies: The Real Dollar Comparison
| Coverage | Individual Policy | Inside BOP | Savings |
|---|---|---|---|
| General Liability ($1M/$2M) | $45/mo | Included | |
| Commercial Property ($200k) | $75/mo | Included | |
| Business Interruption | $40/mo | Included | |
| Total Before Bundling | $160/mo | ||
| BOP Bundle (typical) | $125-140/mo | ~$20-35/mo saved |
The bundling discount varies by carrier and industry. Progressive and The Hartford typically offer 12 to 15 percent. NEXT runs closer to 10 percent. For a $500k-revenue retail business, the annual savings typically run $240 to $420.
What a BOP Does NOT Cover
This is the section most carrier pages skip. Six major gaps:
Workers Compensation: NOT covered by BOP
BOP explicitly excludes employee injuries. If you have employees, WC is required in most states regardless of your BOP. See our workers comp cost guide. See costs
Commercial Auto: NOT covered by BOP
Business vehicles are not covered by BOP. Even employees using personal cars for work are excluded. You need hired/non-owned auto or a commercial auto policy. See costs
Flood and Earthquake: NOT covered by BOP
Commercial property inside a BOP typically excludes flood and earthquake. Separate flood insurance through the NFIP runs $700 to $2,000/year for commercial properties.
Cyber Liability: NOT covered by BOP
Some BOPs offer a cyber endorsement for $300 to $800/year, but it is usually sublimited to $50k to $250k. Standalone cyber policies offer $1M+ coverage. See costs
Professional Liability (E&O): NOT covered by BOP
BOP does not cover professional mistakes or advice errors. Service businesses need a separate E&O policy. See costs
Employment Practices Liability (EPLI): NOT covered by BOP
BOP does not cover wrongful termination, harassment, or discrimination claims. EPLI is a separate endorsement or policy ($800 to $3,000/year).
Who Should Buy a BOP
A BOP makes sense if you:
- Have a physical office, store, or warehouse
- Own equipment worth more than $10,000
- Carry inventory
- Have fewer than 100 employees
- Operate in a standard-risk industry (retail, restaurant, service, light manufacturing)
Who Should NOT Buy a BOP
A BOP is not the right fit if you:
- Work entirely from home with no client visits (standalone GL is cheaper)
- Operate a high-risk manufacturing or chemical business (carriers won't bundle)
- Need custom coverage limits the BOP program can't accommodate
- Are a pure-digital business with no physical assets to protect
BOP Cost by Industry
| Industry | BOP Median/mo | BOP Range/mo |
|---|---|---|
| Home-based service (low asset) | $57 | $45-85 |
| IT Consulting (office) | $72 | $55-110 |
| Retail Store (under $500k inventory) | $118 | $85-190 |
| Restaurant (limited service) | $175 | $120-280 |
| Restaurant (full service) | $214 | $150-340 |
| General Contractor (office + tools) | $185 | $130-310 |
| Medical / Dental Office | $225 | $160-380 |
Available BOP Endorsements
| Endorsement | Typical Add-on Cost | Who Needs It |
|---|---|---|
| Cyber liability add-on | $300-800/yr | Any business storing data |
| Hired / non-owned auto | $300-600/yr | Employees drive personal cars for work |
| Employment practices liability (EPLI) | $800-3,000/yr | 5+ employees |
| Equipment breakdown | $150-400/yr | HVAC, elevators, specialized equipment |
| Accounts receivable | $100-300/yr | Service businesses with large AR |
Top Carriers for BOP in 2026
| Carrier | BOP Median/mo | Strengths |
|---|---|---|
| The Hartford | $135 | Broadest endorsement menu, strong claims handling |
| Progressive Commercial | $140 | Best for auto-BOP bundles |
| NEXT Insurance | $109 | Fastest quote, best for under-$500k revenue |
| Hiscox | $165 | Professional services focus, E&O add-on |
| Coverdash | $102 | Digital-first, good for tech/online businesses |
Compare 2026 Business Owner Policy Quotes
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Frequently Asked Questions
How much does a Business Owner Policy cost?
A BOP costs $57 to $221 per month in 2026. The median is $125 per month per Insureon data. Low-risk home-based businesses pay around $57 per month. Restaurants and retail stores pay $150 to $340 per month. The property value you insure is a major cost driver.
What does a BOP not cover?
Workers compensation, commercial auto, professional liability, flood, earthquake, and cyber are all excluded from standard BOP coverage. Workers comp and commercial auto are the most common and costly gaps. Each requires a separate policy or endorsement.
Is a BOP worth it?
For most businesses with physical assets, yes. The 10 to 20 percent bundling discount plus the convenience of single-policy management makes it the right choice. Pure home-based service businesses with no physical assets may find standalone GL cheaper at $22 to $45 per month.
Can I add cyber coverage to a BOP?
Yes, most carriers offer a cyber endorsement to a BOP for $300 to $800 per year. The sublimit is typically $50,000 to $250,000, which covers small incidents but not a serious data breach. If you store significant customer data, a standalone cyber policy with $1M+ limits is more appropriate.
What is the BOP business size limit?
Most BOP programs cap at 100 employees and certain revenue thresholds (typically $5M to $10M). Larger businesses need a commercial package policy (CPP) instead. High-risk industries like manufacturing may also be ineligible for standard BOP programs.