You can get a good idea of what to expect by looking at cost data from the thousands of businesses that found policies with Insureon, the leading online marketplace for small business insurance.
The first policy that most small business owners need—and also the least expensive one—is general liability insurance. In an analysis of 30,000 small businesses that purchased commercial insurance through Insureon, the average cost of a general liability insurance policy is $42 per month or $500 per year.
General liability coverage is often bundled with commercial property insurance at a discount in a package called a business owner's policy (BOP). A BOP provides financial protection against the most common lawsuits and property losses at an affordable price, making it the best choice for a small business. The average cost of a business owner's policy is $57 per month or $684 annually.
The table below shows average monthly costs for our top small business insurance policies. These figures are sourced from the median cost of policies purchased by Insureon customers from leading insurance companies. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
Business insurance policy | Average monthly cost |
---|---|
$42 / month | |
$57 / month | |
$61 / month | |
$45 / month | |
$75 / month | |
$145 / month | |
$67 / month |
Hear from customers like you who purchased small business insurance.
Your insurance provider will typically calculate your premiums based on several different factors about your business. The factors that impact your cost can vary depending on the types of coverage that your business needs.
The size of your business, its location, and the type of work you do are all key factors in determining your insurance rates. The average monthly premiums, listed above, can give you a general idea of how much you could pay for coverage.
Here's a quick look at the factors that affect the cost of general liability insurance coverage and other types of small business insurance:
If you want car insurance that pays for a wide range of damage, you have to pay more for it. The same rule applies to business insurance. If you want a policy that covers more expensive accidents and lawsuits, expect to pay more than you would for basic coverage.
General liability insurance is an occurrence-based policy. It pays for losses that occur during the policy period and has two limits:
The limits can run from $250,000 to $2 million and more. Most Insureon customers choose $1 million / $2 million general liability insurance limits.
Professional liability or errors and omissions insurance (E&O) policies are claims-made and only cover claims filed while your insurance is kept active.
When buying a policy, it's a good idea to make sure the deductible is something you can easily afford. If you can’t pay for it in a crisis, your insurance won’t activate to cover your liability claim. The average deductible that Insureon customers select for general liability insurance is $500.
The right amount of insurance coverage depends on your business needs. You want coverage that'll cover a potential lawsuit, without buying more than you need. Chat with a licensed insurance agent if you're unsure which limits are right for your business.
When deciding how much to charge for a policy, your industry is a top consideration for insurance companies. Insurers take into account any risks that might increase the chance of an expensive claim, such as hazardous machinery that could injure workers, or a greater likelihood of malpractice lawsuits.
Businesses in high-risk industries are more likely to file an insurance claim, which results in higher premiums. Here are a few examples:
You might also run into insurance requirements for your industry. For example, businesses in the construction and cannabis industries are often required to carry general liability insurance.
Learn more about recommended insurance policies and costs for your industry:
Your location can also influence the cost of business insurance. For example, businesses in an area with high crime or increased foot traffic may pay more for insurance that covers theft or customer accidents.
You’d also face higher insurance costs if you’re in a district with expensive real estate, as it could increase your cost of claims.
State laws also play a role. Most states require workers' comp insurance for businesses with employees. The majority of states also require commercial auto insurance for business-owned vehicles.
Finally, you may need a certain policy to work in a specific location. For example, businesses in real estate, insurance, or healthcare may need professional liability insurance (also called errors and omissions insurance) in order to get licensed in their state or work in a specific setting like a hospital.
Insurance companies use a system of class codes for reference when determining the premiums for some policies. These codes group similar types of work together to give the insurer an idea of the level of risk your business faces.
One example is general liability class codes, which group businesses by their industry. Construction businesses face higher risks of injuries and property damage claims. Professional services and consultants are considered less risky for general liability claims, and have different class codes to represent this.
Insurance providers also rely on class codes for workers' compensation. Clerical office workers across different industries may share the same workers' comp code, which designates them as low risk for work-related injuries and illnesses.
The factors listed above aren't the only ones that affect the cost of small business insurance. Insurers will also look at:
Business insurance companies offer a variety of products for different premiums, which is why it's important to compare their offerings. You could contact each individually—but it's faster and easier to work with an insurance agent or broker, like Insureon.
With Insureon, you can fill out our easy application to get quotes from top-rated insurance companies. A licensed insurance agent will help you find coverage that matches your risks, at a price you can afford.
In addition to shopping around, there are a few other ways to save money on business insurance:
The most common bundle is a business owner's policy, which includes general liability coverage and commercial property insurance. The average cost of a BOP is only $57 per month for Insureon's small business customers.
Bundle up. A business owner's policy includes both general liability and commercial property insurance.
It costs about $57 per month, less expensive than if these policies were purchased separately.
Don't put your business at risk. Apply for your policy today. Oh-oh!
Insureon partners with top-rated U.S. insurance companies to find the right coverage for your small business. To get started, fill out our easy online application with basic information about your company, such as revenue and number of employees, and get free business insurance quotes from the nation's leading carriers.
You can consult with a licensed insurance agent at any point in the process. Compare quotes and choose the coverage that fits your business needs and your budget. Once you pay for your policy, you can download a certificate of insurance to show clients and others that your business is protected.
Obtén más información sobre precios de seguros para negocios (en español).
Insureon is the number one online marketplace for small business insurance. We have helped everyone from software developers to house cleaners, management consultants, and general contractors with their business insurance needs.
We partner with 30+ leading insurance carriers, such as The Hartford, Liberty Mutual, and Acuity, to find the best possible coverage for your business. Our expert agents can guide you through your options and answer any questions along the way.
The average costs on this page were derived from our data on 30,000 small business owners who purchased policies through Insureon. To understand how your business compares to our typical customer, it's helpful to get an idea of who we insure. The majority of our small business customers have:
The number of employees can impact the cost of business insurance coverage, especially for policies like workers' compensation insurance.
The majority of small businesses in this analysis (57%) have only one employee. That means most of our customers are sole proprietors, independent contractors, and freelancers. Another 29% of businesses have two to four employees, and others employ five or more.
Your revenue also impacts the cost of small business insurance. For example, a small business that earns less than $1 million in annual revenue may be eligible for a cost-saving business owner's policy.
The average revenue of the small businesses included in this analysis is $80,000. The majority of customers (53%) have less than $100,000 in annual revenue.
Business insurance premiums may be lower for companies that have been in business for many years without making a claim.
The majority of companies included in this analysis (69%) have been in business for five years or less.