Business Owner's Policy (BOP) Cost Calculator

About the Business Owner's Policy (BOP) Cost Calculator

A Business Owner's Policy (BOP) bundles general liability, commercial property, and business interruption insurance into a single, discounted package. BOPs are designed for small to medium businesses and typically cost 10-15% less than purchasing each coverage separately.

This calculator estimates your BOP premium based on building value, contents, annual revenue, industry risk, and your location. It also compares the bundled cost to purchasing GL and property insurance separately, showing the potential savings from a BOP.

This is an educational estimate only. BOP eligibility depends on business type, size, and revenue — some high-risk businesses don't qualify. Work with a commercial insurance agent to determine if a BOP is right for your business.

When This Page Helps

For qualifying small businesses, a BOP is the most cost-effective way to get comprehensive coverage. The bundled discount, simplified administration (one policy, one renewal), and built-in business interruption coverage make it the go-to choice for retailers, offices, restaurants, and service businesses.

How to Use the Inputs

1. Enter the replacement cost of your building (or $0 if you lease).
2. Enter the value of your business contents (equipment, inventory, furniture).
3. Enter your annual revenue.
4. Select your industry risk level.
5. Review the BOP estimate and comparison to separate policies.

Example Calculation

Tips & Best Practices

• BOPs are designed for small businesses with revenue typically under $5-10 million.
• Most BOPs include business interruption coverage at no additional charge.
• You can add endorsements for cyber liability, hired/non-owned auto, and equipment breakdown.
• High-risk businesses (bars, contractors, manufacturers) may not qualify for a BOP.
• Compare BOP quotes from at least 3 carriers — pricing varies significantly.
• This is an educational estimate only — consult a commercial agent for BOP eligibility and quotes.

The BOP Advantage for Small Business

Business Owner's Policies exist because insurers recognized that small businesses need the same coverages but can't afford to buy each policy separately at standard rates. By bundling GL, property, and BI into one policy, carriers reduce their administrative costs and pass the savings to policyholders.

When a BOP Isn't Enough

As your business grows, a BOP may become insufficient. Businesses exceeding revenue or size thresholds will need to transition to separate commercial package policies with higher limits and more customized terms. Specialized risks like professional services, manufacturing, and construction usually need tailored programs from the start.

Maximizing Your BOP

Take advantage of available endorsements to build a comprehensive program on the BOP foundation. Add cyber liability, equipment breakdown, and hired/non-owned auto. Combine the BOP with standalone workers' comp, commercial auto, and umbrella policies for complete protection.

Frequently Asked Questions

• What does a BOP include?

  A standard BOP bundles general liability, commercial property, and business interruption insurance. Many BOPs also include coverage for electronic data, tenant improvements, and outdoor signage. Additional coverages can be added via endorsements.

• Who qualifies for a BOP?

  Small to medium businesses in lower-risk industries typically qualify: offices, retailers, restaurants, professional services, and apartment buildings. Eligibility varies by carrier but generally requires revenue under $5-10 million and premises under 25,000-100,000 sq ft.

• How much cheaper is a BOP vs. separate policies?

  BOPs typically save 10-15% compared to purchasing GL and property separately. Some carriers offer even larger discounts. The savings come from packaging efficiency and reduced administrative costs for the carrier.

• What is NOT covered by a BOP?

  BOPs don't include workers' compensation, commercial auto, professional liability (E&O), health insurance, or umbrella coverage. These must be purchased separately. BOPs also exclude flood, earthquake, and (usually) cyber in the base policy.

• Can I customize a BOP?

  Yes. Most carriers offer endorsements to add cyber liability, hired/non-owned auto, equipment breakdown, employment practices liability, and other coverages. This makes the BOP a flexible foundation for your insurance program.

• Is a BOP right for my business?

  If you're a small to medium business in a standard risk class with a physical location and don't need highly specialized coverage, a BOP is likely your best option. High-risk or large businesses may need separate, specifically tailored policies.