The 6 Best Business Owner’s Policy Insurance of 2020

Select the right plan to protect your company

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Forty percent of small businesses will likely experience some kind of insurance claim within the next 10 years, according to an analysis conducted by The Hartford. According to this study, some of the most common claims reported by businesses include burglary and theft, water and freezing damage, wind and hail damage, fire, and customers slipping and falling. 

That's why it's important to invest in a comprehensive business owner’s policy (BOP). A BOP is a type of insurance that takes the most common monoline policies that businesses seek out for coverage for these common claims and combines them into one policy for greater convenience and cost-effectiveness.

With this roundup, we've done the research and vetted more than a dozen companies to help business owners find the best BOP for their specific needs. Some of the key criteria we considered include the company history and ratings, the types of insurance policies offered, the plan options, pricing, the underwriting process, and what types of discounts are available—all important factors for anyone shopping around for a business owner's policy.

The 6 Best Business Owner’s Policy Insurance of 2020

Best Overall: Progressive Commercial

Progressive Commercial

Progressive Commercial

Progressive Commercial offers the peace of mind of being one of the Top 10 Insurance Companies by the Metrics that we've found and it's our best overall provider of business owner's policies in this review. In business since 1937 and with an A+ (Superior) rating from AM Best, Progressive offers the coverage you need to run your business at a price that will fit your budget. Plus, as your business grows—and potential risks climb higher—you can count on Progressive to offer all the extra add-on options your business may eventually need.

Pros
  • Online quotes available

  • Has an A+ Superior rating from AM Best

  • In business since 1937

Cons
  • Coverage not available in every state

Progressive offers a business owner's policy that pairs general liability and property coverage. With its general liability coverage, businesses get protection against customer injury, property damage, and product-related claims. The added property coverage encompasses a business' commercial real estate property as well as its contents.

Additional offerings include commercial auto for those companies that use vehicles for deliveries or other business purposes. Inland marine insurance covers items that are transported overland as part of day-to-day business operations. Cyber insurance protects against electronic attacks or data leaks, and workers’ compensation provides protection if any employees become injured or sick on the job.

In 2019, small businesses that purchased BOPs through Progressive paid an average of $80 per month, with the median cost totaling $62 per month. Factors that affect the cost of insurance include the location, number of years in business, type of business, number of employees, coverage selections, and value of the property and equipment.

Business owners who sign up for a BOP may be eligible for up to 10% to 15% off a Progressive Commercial auto policy. Customers can learn more and get a quote online or by phone.

Best for Startups: The Hartford

The Hartford

 The Hartford

With three monoline plans bundled into one BOP, business startups can spend less and get more with The Hartford, our top choice as best for startups. The company's robust business income insurance means owners will be able to keep paying their bills and employee payroll in the event of any unexpected disruption to their business due to a covered cause. That's important for startups that can't afford any disruption to their revenue streams.

Pros
  • In business since 1810

  • Has an A+ rating from AM Best

  • Online quotes are available within minutes

Cons
  • Options not available in every state

In business since 1810 and serving more than one million small business customers, The Hartford has an A+ rating from AM Best.

The company's BOP bundles together three policies—commercial property insurance, general liability insurance, and business income insurance—into one offering to save entrepreneurs money. With commercial property insurance, businesses are protected whether they own, lease, or rent, and they'll find coverage for both the building as well as equipment, inventory, furniture, and fixtures.

The Hartford's general liability insurance offers coverage in the event of harm to a person or damage to property, including bodily injury, libel, or slander. Business income insurance covers gaps in income due to any unexpected closure of the business due to a covered cause, so you can continue to pay rent and your payroll. 

Other add-ons include data breach (assistance in the event of a leak of customer data or cyber attack), professional liability (errors and omissions made by the company), workers' compensation (benefits for employees or their family due to work-related injury or death), and commercial auto insurance (assistance when you or your employees are harmed while driving for work-related purposes). As startups advance from early to later stages, founders may also consider investing in commercial umbrella insurance, available through The Hartford, which offers coverage for things like legal fees, medical bills, and damage expenses.

Online quotes are available within minutes. The cost of policies through The Hartford varies based on the type of business. Customers can file claims online and over the phone.

Best for Tech Companies: TechInsurance

TechInsurance

 TechInsurance

Tech leaders pride themselves on making data-driven decisions. That's why TechInsurance's marketplace search engine may appeal to their sensibilities by giving users insights into the overall options and costs for plans that meet unique business needs. TechInsurance has specialized policies designed to protect tech companies' unique risks, which helped make them best for tech companies in this review.

Pros
  • Compare the BOP options available to tech companies from major insurance providers rated A and up by AM Best all in one place

  • Get instant online quotes

Cons
  • Immediate insurance coverage is not available

TechInsurance, an insurance marketplace powered by Insureon, has helped over 350,000 small businesses find savings by comparing online quotes from insurance companies with A ratings and higher from AM Best, including Liberty Mutual, Travelers, The Hartford, and more. Since its founding in 2011, Insureon has written 1 million insurance policies. BOP plans available through TechInsurance often include general liability insurance for coverage against common liability risks and commercial property insurance for protection for business property. 

Extra customizations are available, such as business interruption insurance, workers’ compensation, and hired and non-owned auto insurance. Other add-ons include errors and omissions insurance, available for about $61 per month, as well as cyber liability insurance, which offers coverage in the event of a data breach or cyber attack, for about $145 per month.

The TechInsurance platform lets tech businesses search for policies by general liability coverage level, ranging from $1 million to $2 million, and with deductible choices ranging from $250 to $10,000. For business personal property damage, customers can choose from $10,000 to up to $500,000. Online quotes are available. 

According to the company's website, tech businesses pay a median premium of $45 per month, or $540 per year, for business owner's policies through TechInsurance. Factors such as business property value or owning expensive equipment can affect the price of BOPs. While instant coverage is not available, coverage is available within 24 hours.

Best for Professional Services: Travelers

Travelers

 Travelers

Travelers offers a range of specialized BOPs that cater to various niche service provider specialties. So, whether your professional service offers bookkeeping or pet grooming, you're likely to find a unique plan that meets your company's specific coverage needs with Travelers, named best for professional services in our review.

Pros
  • Has the highest rating from AM Best, an A++ Superior

  • Has been in business since 1864

  • Offers specialized BOP plans tailored to professional service businesses

Cons
  • Customers must contact an agent directly to get a quote

With an A++ (Superior) rating from AM Best, Travelers has been in business since 1864 and specializes in the professional services industry, which includes policies tailored to financial services, personal care services, pet care services, service businesses, and technology services companies. 

The company's general BOP comprises three monoline policies: commercial general liability insurance, commercial property insurance, and business income and extra expenses coverage.

A specialized BOP for service businesses includes two extra protections for valuable papers and records (common with professional services) and hired and non-owned auto liability. BOPs are tailored for the service industry—for example, with pet care service providers, there's a plan that includes extra bailee liability policies for pet grooming, boarding kennels, and veterinarians.

The cost of a given policy depends on the coverage limits selected as well as the business industry, location, size, and other factors. In addition to a BOP, Travelers offers policies for commercial auto and trucking, workers' compensation, cyber and privacy coverage, and other options.

Instant online quotes and coverage are not available, so you must find a local agent to get more details and sign up for a plan.

Best for Restaurants: State Farm

State Farm

 State Farm

It's not every insurance company that specializes in BOP offerings for restaurants. If you run a food business, then you know the costs of contamination and spoilage can add up. That's why State Farm offers two plans with special protections just for food businesses and is our top pick for restaurant BOP insurance.

Pros
  • Has the highest rating from AM Best, an A++ Superior

  • Has been in business since 1922

  • Offers two unique BOPs for food businesses covering food contamination, spoilage, and more

Cons
  • Not all plans may be available in all states

  • Instant online quotes and coverage not available; customers must call a local agent for a quote

State Farm offers two specialized BOPs for food businesses, including one for food stores and food shops and one for restaurant businesses. Founded in 1922, the company offers a wide range of insurance products and has earned top marks from AM Best, an A++ (Superior) rating.

Both its food store and restaurant business BOP plans provide coverage for the typical inclusions available with its other BOP offerings—including property, liability, and loss of income—as well as for several other needs unique to the industry. This includes food contamination loss of income, which offers protection in the event of being closed by a board of health or other government authority due to food contamination. With spoilage coverage, restaurants get protection in the event of loss of items due to mechanical breakdown, power outages, or refrigerant contamination. Equipment breakdown covers damage to covered property. There's even protection for things like employee dishonesty or the backup of the business' sewer or drain. 

Beyond these inclusions, State Farm offers other custom coverage options. These include protection for data breach, hired auto (for cars owned and insured by the policyholder or their employees), and ordinance or law (for the loss of income or increased cost due to construction or repairs required by local governments). 

Customers can bundle other plans, such as commercial auto, workers' compensation, and retirement plans available from State Farm. One downside is that quotes and coverage are not available via an online application. You'll need to contact State Farm for a quote or search for a local agent for more information.

Best for Contractors: Hiscox

Hiscox

Hiscox 

If you're looking for coverage that won't break your bank as a self-employed, sole proprietor, then consider Hiscox, best in our review for contractors. With options available as low as $42 a month, you'll find yourself protected for general liability and property damage, and, as a bonus, if you work from home, you can get up to 10% off your bill.

Pros
  • Has been in business since 1901

  • Has an AM Best rating of A (Excellent)

  • Instant online quotes and coverage available

Cons
  • No inland marine inclusion

  • Off-premises limit for business property and equipment taken 100 feet or more from the business premises

Founded in 1901, Hiscox has an AM Best rating of A (Excellent) and serves over 300,000 small business customers, with coverage offered for contractors as well as IT/technology, health and beauty, architecture and engineering, marketing, consulting, real estate, and other businesses. 

The company offers BOP plans with general liability coverage (including claims of bodily injury) and business equipment protection (including accidental damage) for as little as $41.67 a month or $500 per year. In a sample quote, an IT consultant in California would pay $500 per year with a $500 property deductible for business equipment coverage up to $35,000 and general liability coverage up to $1 million per occurrence and $2 million in aggregate.

Specific quotes will vary based on the size of the business, location, and specific limits and deductibles selected. Customers that purchase more than one product from Hiscox can get a discounted rate of up to 5%. And those with home-based businesses get a 10% discount, making the company ideal for independent contractors. Customers that need to file claims may do so online, over the phone, via email, or by mail. 

Prospective customers can get quotes online or over the phone. In addition to BOP plans, the company offers stand-alone policies for general liability, professional liability, cybersecurity, short-term liability, workers’ compensation, employment practices liability, commercial auto, and more.

What Is a Business Owner’s Policy (BOP)?

A business owner’s policy (BOP) is a commercial insurance product that combines commonly purchased individual policies into one overall policy, making it a convenient and cost-effective alternative to buying separate single coverage plans. Companies that invest in BOPs usually have 100 employees or less and revenues at or under $5 million, according to the Insurance Information Institute. 

Who Is Eligible for a Business Owner’s Policy?

Any business is eligible for a BOP, but some may have higher coverage needs than the typical BOP offers. BOPs are generally designed for smaller, less risky businesses that don’t need very specific tailoring of insurance policies. 

What Is the Difference Between a BOP and a Package Policy?

A BOP is prepacked while a package policy is custom-built per a given company's needs. Because BOPs do not include common policies many businesses need—such as workers' compensation, cyber liability, and errors and omissions insurance—some companies may opt to add these additional policies to create a custom business insurance package. 

What Does a BOP Typically Exclude?

Even though a BOP covers multiple risks, there are common exclusions. Companies often need to supplement business owner's policies with other insurance options, including policies specifically for professional liability, workers’ compensation, and commercial flood. Companies where employees drive vehicles as part of the business may also need extra coverage for business vehicles. Tech companies and other businesses with customer databases may need to invest in additional protection against cyber attacks. 

How Much Does a BOP Cost?

The median price for some lower-end BOP plans is around $42 to $45 per month, while on the higher end the median cost for some plans is around $62 per month. These plans typically include a combination of general liability and business equipment or property insurance.

How We Chose the Best Business Owner’s Policy Insurance Companies

As you're considering insurance coverage options for your business, you want to be confident that you're choosing not only a company that can be trusted but one that will also offer the specific coverage you need. We took the time to review and evaluate and over a dozen businesses, weighing the most important factors such as the company's overall history and ratings, what kinds of insurance policies they have available, plan details, pricing, what's involved in the underwriting process, and if any discounts are available—all of which are important for customers looking to purchase a business owner's policy.

Article Sources

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  2. Business Wire. "AM Best Affirms Credit Ratings of The Progressive Corporation and Most Members; Upgrades Issuer Credit Ratings of American Strategic Insurance Corp. and Its Affiliates." Accessed June 29, 2020.

  3. Insurance Information Institute. "Understanding business owners policies (BOPs)." Accessed June 29, 2020.