If you run a consulting business, you've probably heard about Business Owner's Policies—or BOPs, as they're called in the insurance world. But here's the question that trips up most consultants: is a BOP actually worth it for your business, or are you better off with separate policies? The answer depends on what you own, where you work, and how much risk you're willing to carry.
A BOP is essentially a bundled insurance package that combines general liability coverage with commercial property insurance and business interruption coverage. Think of it as the insurance equivalent of a combo meal—you get multiple protections in one policy, usually at a lower price than buying each coverage separately. For consulting firms in 2026, the average BOP costs between $32 and $42 per month, which is significantly below the small business average of $147 monthly. The reason? Consulting is considered a lower-risk industry compared to, say, construction or manufacturing.
What's Actually Covered in a BOP
Let's break down what you're actually getting when you purchase a BOP. The general liability portion protects you if a client slips and falls in your office, or if you accidentally damage their property while working on-site. It covers legal defense costs and settlements if someone sues your business for bodily injury or property damage. For a consultant meeting clients in coffee shops or working from home, this might seem like overkill—but consider this scenario: a client trips over your laptop bag at a meeting and breaks their wrist. Without general liability coverage, you could be personally on the hook for their medical bills and lost wages.
The commercial property insurance component covers your business equipment, furniture, and inventory. If you work from a home office with just a laptop and a desk, this coverage might not add much value. But if you rent office space, own expensive computer equipment, servers, or specialized software, or maintain a significant amount of business property, the property coverage becomes essential. It protects against theft, fire, vandalism, and certain natural disasters.
Business interruption coverage is the part of a BOP that many consultants overlook—until they need it. This reimburses you for lost income if your business operations are suspended due to a covered event. Imagine a fire in your office building forces you to relocate for three months. Business interruption coverage would help replace the income you lose while you're unable to work at full capacity. For solo consultants working remotely, this might be less critical, but for firms with physical offices and employees, it's a financial lifeline.
The Cost Savings Reality Check
Here's where the math gets interesting. Bundling your coverage into a BOP typically saves you 10-15% compared to purchasing general liability and commercial property insurance separately. Some sources cite savings as high as 15-25%. For a small consulting firm, this could mean saving anywhere from $200 to $800 annually—money that could go toward marketing, equipment upgrades, or professional development.
In 2026, general liability insurance alone costs an average of $104 per month for small businesses. A BOP, which includes that same general liability coverage plus property and business interruption protection, costs an average of $147 monthly. That means you're paying just $43 more per month to add significant additional coverage. For consulting businesses specifically, the numbers are even more favorable—you're looking at $32-$42 monthly for the full BOP package.
Location matters when it comes to pricing. A consulting firm in North Carolina might pay $28 monthly for BOP coverage, while the same firm in Pennsylvania could pay $37 for identical coverage. If you're operating in a major metro like New York or Chicago, expect to pay on the higher end due to increased litigation risk and higher costs of doing business in those markets.
When a BOP Makes Sense for Your Consulting Business
Not every consulting business needs a BOP. If you're a solo consultant working from home with minimal equipment—think laptop, phone, and maybe a printer—you might be better off with just general liability insurance. But here are the situations where a BOP becomes the smarter choice:
You rent or own office space. Once you have a physical location where you meet clients or house equipment, the property coverage in a BOP becomes valuable. You have employees. Even one employee increases your liability exposure and makes the bundled protection worthwhile. You own significant business property. If you've invested in high-end computers, servers, specialized equipment, or maintain a substantial inventory, property coverage protects that investment. You meet clients in person regularly. More face-to-face interaction means higher liability risk, making the general liability component essential.
To qualify for a BOP, your consulting business typically needs to meet certain criteria: fewer than 100 employees and under $5 million in annual revenue. Most consulting firms easily fall within these parameters. Insurance companies consider consulting a low-risk operation, which is why you'll pay lower premiums compared to higher-risk industries.
The Critical Coverage Most BOPs Don't Include
Here's where many consultants get tripped up: a BOP does not include professional liability insurance, also called errors and omissions (E&O) insurance. This is arguably the most important coverage for any consulting business. Professional liability protects you when a client claims your advice, recommendations, or services caused them financial harm. If you're advising clients on strategy, operations, technology, marketing, or any other business matter, you need this coverage—and it won't be included in your BOP.
Think of it this way: general liability (included in your BOP) covers bodily injury and property damage—physical harm. Professional liability covers economic harm resulting from your professional services. A BOP also won't cover your business vehicles, employee injuries (that's workers' compensation), or health and disability insurance for you or your staff. These all require separate policies.
Most consulting firms end up with a combination: a BOP for general liability and property coverage, plus a separate professional liability policy. Some insurers offer package deals that bundle all three coverages, which can provide additional savings and the convenience of managing fewer policies.
How to Decide and Get Started
Start by inventorying your business assets and operations. Make a list of all the equipment, furniture, and property your business owns. Consider where you work and how often you interact with clients in person. Think about what would happen if you couldn't operate your business for a month due to a fire or other disaster—could you absorb that income loss?
If you have minimal physical property and work primarily from home, start with general liability insurance and professional liability coverage. You can always add property coverage later as your business grows. If you have a physical office, employees, or significant equipment, a BOP is likely your most cost-effective option. Just remember to add professional liability insurance on top of it.
Getting quotes is straightforward. Most business insurance providers can give you a BOP quote online in minutes. You'll need basic information about your business: revenue, number of employees, location, and what kind of property you need to insure. Compare quotes from multiple insurers, and don't just look at price—check the coverage limits, deductibles, and exclusions. The cheapest policy isn't always the best value if it leaves you underinsured when you need to file a claim.
