Cheapest Small Business Insurance Rates in 2026 (From $21/mo)

Updated: January 20, 2026

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Cheapest Small Business Insurance: Fast Answers

We studied 79 industries, all 50 states, companies with 0 to 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

Cheapest General Liability Insurance: The Hartford ($83 per month)
Cheapest Workers Comp Insurance: ERGO NEXT ($69 monthly)
Cheapest Professional Liability Insurance: The Hartford ($72 a month)
Cheapest BOP Insurance: The Hartford ($115 per month)
Cheapest Commercial Auto Insurance: ERGO NEXT ($137 a month)

What type of business insurance is cheapest for small businesses?

The cheapest small business insurance type is workers' comp in aggregate, with professional liability and general liability policies following behind as the second and third lowest cost plans, respectively.

The rankings for business insurance policy type average costs:

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

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. 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?

Legally, the only required business insurance coverages you need for a small company are workers' comp (if you have employees), commercial auto insurance (if you use vehicles) and commercial property insurance (if you are leasing or financing a property). General liability is a necessary optional policy to keep your costs as low as possible.

How do you get the cheapest small business insurance quotes?

Use the following methods:

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

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Cheapest Small Business Insurance Companies

The Hartford is the cheapest small business insurance provider with an average overall rate of $85 per month or $1,024 per year, saving you 23% compared to the average. ERGO NEXT is the second most affordable small business insurer, with an average savings of 15% or $16 per month. Also look at Thimble, Simply Business and Progressive Commercial.

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

How We Decided The Cheapest Small Business Insurance Providers

*The cheapest rates shown here and throughout the article are based on our methodology's base profile of a small business 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

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 customized coverage options for tech, financial and consulting professionals

cons

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

COMPANY HIGHLIGHTS

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.

The Hartford earned the second-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.

ERGO NEXT: Runner-Up Cheapest Small Business Insurer

pros

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

cons

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

COMPANY HIGHLIGHTS

As the runner-up for the most affordable small business insurance, ERGO NEXT offers the most competitive commercial auto and workers' compensation plans overall. It is a good choice 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. Its digital experience was also rated first 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 the 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 second most affordable in 12 industries, and ERGO NEXT comes close behind at third with 10.

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Data filtered by:


Accountants	The Hartford	$48

Cheapest Small Business Insurance by State

The Hartford is the most affordable small business insurer nationally, ranking as the most affordable in 48 out of 50 states, while Thimble ranks as the lowest-cost business insurer in the remaining two states.

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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

The Hartford is the cheapest small business insurer for sole proprietorships, smaller business owners with one to nine employees, and mid-size companies with 10 to 20 employees. Nationwide provides the most affordable commercial insurance for larger small business LLCs with 21 to 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.
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.
3
Ensure your small business is classified correctly
Making sure your business is classified correctly can possibly help you save on small business insurance.
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. 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.
6
Minimize business insurance risks
A risk management plan, safety procedures and reporting your efforts to reduce claims to insurers can reduce small business insurance rates.
7
Review your business insurance policies annually
Regularly reviewing your coverage ensures you're not overinsured or underinsured.

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,

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, ERGO NEXT and Progressive.

The cheapest for your business depends on the number of employees, preferred coverage, industry, location and other business characteristics. To get the best cheap business insurance for you, compare plenty of quotes and companies, bundle policies, and coverage options.

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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 December 31, 2025.