Cheapest Small Business Insurance Rates (From $21/mo)

Updated: November 23, 2025

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Cheapest Small Business Insurance: Fast Answers

We studied 79 industries, all 50 states, companies with 0-49 employees and the largest business insurers in the U.S. to give you the best recommendations for cheap business insurance. We've summarized the cheapest small business insurers and their low prices by commonly needed coverage types below to get you started (Click Each Category To Learn More About The Winners):

Cheapest General Liability Insurance: The Hartford ($83/mo)
Cheapest Workers Comp Insurance: NEXT ($69/mo)
Cheapest Professional Liability Insurance: The Hartford ($72/mo)
Cheapest BOP Insurance: The Hartford ($115/mo)
Cheapest Commercial Auto Insurance: NEXT ($137/mo)

Our experts also provided answers to the most frequently asked questions that will help you find the most affordable business insurance for your small company.

What type of business insurance is cheapest for small businesses?

According to our research of all 50 states, 79 industries, and companies with employees from 0 to 49+, the cheapest small business insurance type is workers' comp in aggregate, with professional liability and general liability policies following behind as the 2nd and 3rd lowest cost plans respectively.

Based on the coverages we studied for most small companies, the rankings for business insurance policy type average costs:

Workers Comp Insurance: $74/mo
Professional Liability Insurance (E&O): $78/mo
General Liability Insurance: $104/mo
BOP Insurance: $147/mo
Commercial Auto Insurance: $149/mo

How much does small business insurance cost on average?

In our study of five major coverage types, small business insurance costs $110/mo and $1,322/yr on average. However, your particular pricing will change widely depending on your particular industry, location, coverages desired and the size of your company.

How much business insurance coverage do I need while keeping costs low?

Generally speaking, the only required business insurance coverages you need for a small company by law are workers comp (if you have employees) and commercial auto insurance (if you use vehicles) and commercial property insurance (if you are leasing or financing a property). Other than this, general liability is the most necessary optional policy needed by all industries to keep your costs as low as possible.

How do you get the cheapest small business insurance quotes?

In general, the easiest way to get the cheapest business insurance for your small firm is through the following methods:

Comparing business insurance quotes from at least 3 providers
Bundling business insurance policies with the same insurer
Ensure your business is classified correctly
Increase policy deductibles
Pay business insurance annually instead of monthly
Instate claims reduction methods like safety programs
Review your commercial insurance needs annually

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Cheapest Small Business Insurance Companies

The Hartford tops our list as the cheapest small business insurance provider with an average overall rate of $85/mo or $1,024/yr, saving you 23% compared to the average. NEXT comes in behind as the 2nd most affordable small business insurer with an average savings of 15% or $16/mo on average. We also recommend looking into Thimble, Simply Business and Progressive Commercial who all offer coverage for affordable prices in our top 5.

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The Hartford	$85	$1,024
Thimble	$94	$1,130
Simply Business	$97	$1,162
Progressive Commercial	$100	$1,198
NEXT Insurance	$100	$1,199
Coverdash	$102	$1,220
Nationwide	$102	$1,224
biBERK	$105	$1,258
Hiscox	$109	$1,305
Chubb	$118	$1,418

How We Decided The Cheapest Small Business Insurance Providers

*The cheapest small business insurance rates shown here and throughout the article are based on our methodology's base profile of a small businesses with two employees, $300,000 of annual revenues, and $150,000 in payroll. Pricing is averaged across all 50 states, 79 major industries/business types and the most commonly needed coverages: general liability, workers' comp, commercial auto, commercial property, professional liability and business owner's policy (BOP). Businesses with more employees will pay higher rates.

LEARN MORE ABOUT THE CHEAPEST SMALL BUSINESS INSURANCE

Below you can get more information about the cheapest business insurance for small companies by coverage type:

The Hartford: Cheapest Small Business Insurer Overall

*on The Hartford

pros

Cheapest general liability, professional liability and BOP policies
Best claims and agent service scores from customers
Great tailored coverage options tech, financial and consulting professionals

cons

Not available in Alaska and Hawaii
Lower rated digital experience compared to other providers

COMPANY HIGHLIGHTS

With the lowest rates and the best business insurance experience in our study, The Hartford is the top cheapest insurer for most small companies. The company is the cheapest insurer for general liability ($21/mo or 22% savings), professional liability ($6/mo and 8% savings) and BOP insurance ($32/mo or 22% savings) policies, making them particularly attractive for those needing generally needed protection and those that do contract-based work. In addition, they earned the 2nd highest customer experience score in our study, and they have tailored E&O policies for many areas of business like those in tech, accountants, medical professionals, consultants and more that cover items specific to their work that most won't cover.

NEXT: Runner-Up Cheapest Small Business Insurer

*on NEXT Insurance

pros

Cheapest commercial auto and workers' comp policies
Best digital experience out of all providers studies
Gives you both coverage type and amount recommendations in their quotes process
Buying and policy management can be done completely online without an agent

cons

Some coverage types are not offered directly by NEXT
More limited coverage selection than other providers

COMPANY HIGHLIGHTS

As the runner-up cheapest small business insurer, NEXT offers the most affordable commercial auto and workers' comp plans overall, making it an ideal pick for service-based businesses like food trucks, those in transportation and other mobile-based companies. You can also get tailored coverage type and amount recommendations calculated based on your industry and business details to ensure you are covered without the need for an agent. Their digital experience was also rated 1st by customers in our survey with many praising their fast buying and proof of coverage (COI) in under 10 minutes, easy to use mobile app, and simple claims filing, all completely online.

Cheapest Small Business Insurance by Industry

The Hartford is cheapest insurance company for small businesses at the industry level, ranking as the lowest cost provider for 26 out of the 79 industries or business types we studied. Thimble follows as the 2nd most affordable in 12 industries, and NEXT comes close behind at 3rd with 10.

Find out which insurer offers the best small business insurance rates for your industry below by filtering the table.

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Data filtered by:


Accountants	The Hartford	$48
Ad Agency	Nationwide	$29
Auto Repair	Nationwide	$113
Automotive	Coverdash	$116
Bakery	NEXT Insurance	$103
Barber	NEXT Insurance	$27
Beauty Salon	Coverdash	$42
Bounce House	The Hartford	$57
Candle	NEXT Insurance	$41
Cannabis	Nationwide	$104
Catering	Thimble	$101
Cleaning	Nationwide	$106
Coffee Shop	NEXT Insurance	$108
Computer Programming	The Hartford	$40
Computer Repair	NEXT Insurance	$37
Construction	Hiscox	$106
Consulting	The Hartford	$41
Contractor	biBERK	$173
Courier	NEXT Insurance	$174
Daycare	The Hartford	$43
Dental	Thimble	$33
DJ	NEXT Insurance	$21
Dog Grooming	Thimble	$52
Drone	The Hartford	$38
Ecommerce	Thimble	$43
Electrical	Progressive Commercial	$108
Engineering	biBERK	$42
Excavation	biBERK	$261
Florist	Simply Business	$43
Food	Progressive Commercial	$109
Food Truck	biBERK	$115
Funeral Home	The Hartford	$53
Gardening	Chubb	$108
Handyman	biBERK	$139
Home-based	The Hartford	$22
Hospitality	biBERK	$118
HVAC	Thimble	$105
Janitorial	Coverdash	$108
Jewelry	Simply Business	$33
Junk Removal	The Hartford	$125
Lawn/Landscaping	Chubb	$103
Lawyers	The Hartford	$56
Manufacturing	Thimble	$145
Marine	The Hartford	$68
Massage	Chubb	$110
Mortgage Broker	The Hartford	$52
Moving	The Hartford	$136
Nonprofit	The Hartford	$36
Painting	The Hartford	$115
Party Rental	The Hartford	$62
Personal Training	The Hartford	$33
Pest Control	The Hartford	$53
Pet	Thimble	$42
Pharmacy	Coverdash	$41
Photography	NEXT Insurance	$27
Physical Therapy	Thimble	$255
Plumbing	The Hartford	$206
Pressure Washing	Thimble	$312
Real Estate	Nationwide	$119
Restaurant	The Hartford	$102
Retail	Nationwide	$43
Roofing	Thimble	$348
Security	The Hartford	$103
Snack Bars	Thimble	$102
Software	The Hartford	$37
Spa/Wellness	Hiscox	$107
Speech Therapist	Simply Business	$39
Startup	Simply Business	$30
Tech/IT	The Hartford	$39
Transportation	Simply Business	$101
Travel	The Hartford	$33
Tree Service	Thimble	$100
Trucking	The Hartford	$135
Tutoring	NEXT Insurance	$25
Veterinary	biBERK	$50
Wedding Planning	NEXT Insurance	$32
Welding	The Hartford	$127
Wholesale	Coverdash	$46
Window Cleaning	The Hartford	$140

Cheapest Small Business Insurance by State

The Hartford is cheapest small business insurer nationally across almost all states, ranking as the most affordable in 48 out of 50 states, while Thimble ranks lowest cost business insurer for the other two. You can see which company is the most cost-effective provider in your state below by filtering for your state in the table.

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Data filtered by:


Alabama	The Hartford	$87
Alaska	Thimble	$86
Arizona	The Hartford	$84
Arkansas	The Hartford	$81
California	The Hartford	$94
Colorado	The Hartford	$83
Connecticut	The Hartford	$92
Delaware	The Hartford	$96
Florida	The Hartford	$91
Georgia	The Hartford	$85
Hawaii	Thimble	$98
Idaho	The Hartford	$80
Illinois	The Hartford	$92
Indiana	The Hartford	$82
Iowa	The Hartford	$80
Kansas	The Hartford	$82
Kentucky	The Hartford	$83
Louisiana	The Hartford	$98
Maine	The Hartford	$74
Maryland	The Hartford	$80
Massachusetts	The Hartford	$88
Michigan	The Hartford	$79
Minnesota	The Hartford	$78
Mississippi	The Hartford	$84
Missouri	The Hartford	$88
Montana	The Hartford	$83
Nebraska	The Hartford	$79
Nevada	The Hartford	$102
New Hampshire	The Hartford	$83
New Jersey	The Hartford	$95
New Mexico	The Hartford	$85
New York	The Hartford	$99
North Carolina	The Hartford	$73
North Dakota	The Hartford	$78
Ohio	The Hartford	$82
Oklahoma	The Hartford	$83
Oregon	The Hartford	$78
Pennsylvania	The Hartford	$97
Rhode Island	The Hartford	$92
South Carolina	The Hartford	$86
South Dakota	The Hartford	$78
Tennessee	The Hartford	$82
Texas	The Hartford	$85
Utah	The Hartford	$85
Vermont	The Hartford	$80
Virginia	The Hartford	$76
Washington	The Hartford	$101
West Virginia	The Hartford	$88
Wisconsin	The Hartford	$83
Wyoming	The Hartford	$82

Cheapest Small Business Insurance By Company Size

In general, The Hartford still dominates as the cheapest small business insurer for sole proprietorships, smaller business owners with 1-9 employees, and mid-size companies with 10-20 employees. However, past this, Nationwide provides the most affordable commercial insurance for larger small business LLCs with 21-49 employees or more.

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Small Business Size Category	Cheapest Small Business Insurer	Average Monthly Rate
Sole Proprietors	The Hartford	$62
Smaller Businesses (1-9 employees)	The Hartford	$108
Mid-Size Businesses	The Hartford	$198
Larger Small Businesses or LLCs (21-49+ Employees)	Nationwide	$327

How to Get Cheap Small Business Insurance

Here are some tips you should take into account to get the cheapest insurance for your small business.

(Get Cheap Business Insurance)

1
Shop around and compare business insurance quotes
Get quotes from multiple insurers, including independent agents who work with several companies. Rates can vary widely between providers for the same coverage and comparing them apples to apples ensures you get the cheapest small business insurance possible.
2
Bundle your small business insurance policies
Bundling multiple types of business insurance coverage from the same company is one the easiest ways to get cheap rates. For example, our top pick, The Hartford, offers special discounts of up to 10% for bundling multiple policy types.
3
Ensure your small business is classified correctly
Making sure your business is classified correctly can possibly help you save on small business insurance. Sometimes, adjusting how your business activities are described can result in lower rates if you qualify for a less risky category.
4
Pay small business premiums annually instead of monthly
If you can afford it, paying your premium annually often saves money on processing fees, getting you cheaper small business insurance rates. While many companies don't specify their exact discount for annual payment, we see an average 5% discount based on our quote research.
5
Increase your business insurance deductibles
Increasing deductibles on small business insurance coverage can lower premiums significantly by up to 18% based on our research. However, these savings come with higher financial risk during a claim for your company, so ensure you can afford it before moving forward.
6
Minimize business insurance risks
A risk management plans, safety procedures, and reporting your efforts to reduce claims to insurers can reduce small business insurance rates. Especially in a long-term relationship with an insurer, keeping up communication of your commitments to lowering risk over time makes it easier to get lower premiums through renewal negotiations.
7
Review your business insurance policies annually
Regularly reviewing your coverage ensures you're not overinsured or underinsured, helping you save money on small business insurance premiums and during the event of a claim.

Get Cheap Small Business Insurance Quotes

MoneyGeek can match you to your ideal cheap small business insurer based on your industry and state using our specialized tools. Fill in our commercial insurance quote tool below to get the best rates from your top provider for your coverage needs below.

Get Matched To The Best Cheap Small Business Insurer For You

Select your industry and state to get a customized best and cheapest small business insurance match and get tailored quotes.

Industry

State

Low Cost Small Business Insurance: Bottom Line

Based on MoneyGeek's 2025 nationwide analysis, the most affordable business insurance providers are The Hartford, Thimble, Simply Business, NEXT and Progressive. The cheapest for your business depends on factors like the number of employees, preferred coverage, industry, location and other business characteristics. To ensure you get the best cheap business insurance for you, compare plenty of quotes and companies, bundle policies, and ensure you're only getting coverage you need.

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

He writes about economics and insurance, breaking down complex topics so people know what they're buying.

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sources

The Hartford. "Business Insurance." Accessed June 25, 2025.