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Updated: September 18, 2026

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Key Takeaways
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Business size, industry, location and vehicle type (if applicable) are the four biggest drivers of the cost of small business insurance.

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Insurance gets more expensive as a business grows, though some policies increase at a higher rate than others.

Average Cost of Small Business Insurance

Across the six major types of small business insurance, the average cost is about $111 per month. That includes workers’ compensation and commercial auto, which are priced per employee and per vehicle, respectively.

Professional liability, also known as errors and omissions insurance, protects businesses against a claim that their work for a client caused financial harm. This type of policy costs an average of $56 per month. A general liability policy, on the other hand, is a more comprehensive type of business insurance and costs $123 per month.

As a business grows and hires employees, it is required to carry a workers’ comp policy for each employee — that costs an average of $113 per month per worker.

General Liability

$123

$1,474

Workers' Comp

$113 per employee

$1,354 per employee

Professional Liability

$56

$675

Commercial Auto

$163 per vehicle

$1,959

Commercial Property

$125

$1,498

Cyber Insurance

$83

$999

What Are The Table's Costs Based On?

Explore Small Business Insurance Cost Guides per Policy Type

If you'd like to examine a specific small business insurance type's cost in more detail, we've left dedicated resources below.

What Affects the Cost of Business Insurance?

Four factors have the biggest impact on what you’ll pay for a business insurance policy: the size of your business and number of employees, your industry, your location, and, if you insure a vehicle for business use, the type of vehicle. Other factors like income, payroll, and claims history are derived from these primary factors and contribute to your overall risk profile.

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    Having more employees and higher revenue mean more risk, so insurance companies weigh these heavily when setting rates. For example, a small business with three employees, zero commercial vehicles, and annual revenue of $400,000 is less likely to file a claim than a business with 15 employees, five vehicles, and revenue of $5 million.

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    Higher-risk professions such as construction work are more likely to file a claim than office-based positions, so the industry your business falls under plays a key role in what you’ll pay for an insurance policy.

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    Where your business operates directly impacts your rate. If your office is in a high-crime area, for example, it’s more likely to be vandalized or worse. The same is true for a business located in a hurricane- or tornado-prone area; weather can damage buildings, equipment and vehicles.

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    Vehicle Type

    Businesses with a commercial vehicle policy can pay anywhere from $110 per month per vehicle for a sedan to nearly $1,500 per month for a tanker truck carrying hazardous materials. Commercial vehicle policies have the widest variation in cost of any business insurance policy type.

Average Small Business Insurance Costs by Coverage Type and Industry

Industry matters a lot when it comes to the cost of small business insurance. According to our research, 80% of industries pay less than the average cost of an insurance policy. Fifty-two percent pay at least 20% below the national benchmark for each coverage type.

Skewing the national average are businesses in transportation, contracting, wholesale, and manufacturing; they pay an average of $1,434 per month for insurance, roughly three times higher than most industries. The second most expensive group of industries to insure includes property, hospitality, retail, and repair and maintenance-related businesses, which pay around $482 per month.

Use our table below to see where your industry falls on the scale to help you find the right coverage at the best price.

Data filtered by:
Select
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Agriculture & Natural ResourcesWorkers' Comp$180$2,162-60%22
Agriculture & Natural ResourcesCommercial Auto$159$1,9073%14
Agriculture & Natural ResourcesCommercial Property$110$1,31512%19
Agriculture & Natural ResourcesGeneral Liability$100$1,202-18%17
Agriculture & Natural ResourcesCyber Insurance$52$62138%1
Arts, Media & EntertainmentCommercial Auto$128$1,53622%8
Arts, Media & EntertainmentWorkers' Comp$102$1,22510%18
Arts, Media & EntertainmentCyber Insurance$71$85514%7
Arts, Media & EntertainmentProfessional Liability$39$47130%7
Arts, Media & EntertainmentGeneral Liability$38$456-69%4
Arts, Media & EntertainmentCommercial Property$24$28881%5
Beauty, Body & Wellness ServicesCommercial Auto$98$1,17140%3
Beauty, Body & Wellness ServicesCyber Insurance$82$9832%17
Beauty, Body & Wellness ServicesGeneral Liability$40$483-67%5
Beauty, Body & Wellness ServicesProfessional Liability$34$40340%4
Beauty, Body & Wellness ServicesCommercial Property$24$29181%6
Beauty, Body & Wellness ServicesWorkers' Comp$16$19686%1
Childcare ServicesProfessional Liability$166$1,988-195%18
Childcare ServicesCommercial Auto$146$1,74711%12
Childcare ServicesGeneral Liability$128$1,5304%23
Childcare ServicesCyber Insurance$73$88112%10
Childcare ServicesWorkers' Comp$41$49264%7
Childcare ServicesCommercial Property$23$27382%4
Cleaning ServicesCommercial Auto$182$2,189-12%20
Cleaning ServicesWorkers' Comp$135$1,619-20%20
Cleaning ServicesGeneral Liability$100$1,199-19%16
Cleaning ServicesCyber Insurance$65$78322%5
Cleaning ServicesCommercial Property$26$30780%7
Cleaning ServicesProfessional Liability$19$22467%1
Construction & ContractingGeneral Liability$337$4,041174%25
Construction & ContractingWorkers' Comp$319$3,822-182%24
Construction & ContractingCommercial Auto$193$2,317-18%23
Construction & ContractingCommercial Property$130$1,558-4%20
Construction & ContractingProfessional Liability$84$1,010-50%16
Construction & ContractingCyber Insurance$75$89810%11
Consulting ServicesCommercial Auto$104$1,24436%5
Consulting ServicesCyber Insurance$100$1,197-20%21
Consulting ServicesProfessional Liability$51$61010%11
Consulting ServicesGeneral Liability$32$390-74%3
Consulting ServicesWorkers' Comp$23$27879%4
Consulting ServicesCommercial Property$13$15989%2
EducationCommercial Auto$124$1,48824%7
EducationProfessional Liability$74$890-32%15
EducationWorkers' Comp$73$88035%15
EducationCyber Insurance$73$88012%9
EducationCommercial Property$52$62458%14
EducationGeneral Liability$48$576-61%7
Financial ServicesCyber Insurance$114$1,365-37%23
Financial ServicesCommercial Auto$94$1,12343%2
Financial ServicesProfessional Liability$91$1,095-62%17
Financial ServicesGeneral Liability$42$505-66%6
Financial ServicesCommercial Property$26$30879%8
Financial ServicesWorkers' Comp$16$19785%2
Fitness ServicesGeneral Liability$104$1,244-16%18
Fitness ServicesCommercial Auto$103$1,24037%4
Fitness ServicesCyber Insurance$76$9149%12
Fitness ServicesWorkers' Comp$74$89234%16
Fitness ServicesCommercial Property$31$37475%10
Fitness ServicesProfessional Liability$30$36546%2
Food & BeverageCommercial Auto$181$2,175-11%19
Food & BeverageGeneral Liability$126$1,5163%22
Food & BeverageCyber Insurance$81$9762%16
Food & BeverageCommercial Property$69$82645%18
Food & BeverageWorkers' Comp$46$55059%8
Healthcare & MedicalCommercial Property$277$3,323-122%23
Healthcare & MedicalGeneral Liability$209$2,51270%24
Healthcare & MedicalCommercial Auto$133$1,59818%10
Healthcare & MedicalCyber Insurance$116$1,395-40%24
Healthcare & MedicalWorkers' Comp$56$67850%11
Healthcare & MedicalProfessional Liability$43$51524%8
Hospitality, Travel & TourismCommercial Property$209$2,508-67%21
Hospitality, Travel & TourismCommercial Auto$192$2,298-17%22
Hospitality, Travel & TourismCyber Insurance$107$1,283-28%22
Hospitality, Travel & TourismGeneral Liability$107$1,282-13%19
Hospitality, Travel & TourismProfessional Liability$52$6228%12
Hospitality, Travel & TourismWorkers' Comp$48$57857%10
ManufacturingCommercial Property$471$5,656-278%24
ManufacturingCommercial Auto$189$2,266-16%21
ManufacturingWorkers' Comp$160$1,926-42%21
ManufacturingCyber Insurance$72$86214%8
ManufacturingGeneral Liability$69$833-43%10
Marketing & CommunicationsCyber Insurance$96$1,146-15%19
Marketing & CommunicationsCommercial Auto$89$1,06845%1
Marketing & CommunicationsProfessional Liability$39$46831%6
Marketing & CommunicationsGeneral Liability$32$386-74%2
Marketing & CommunicationsWorkers' Comp$17$20985%3
Marketing & CommunicationsCommercial Property$13$16089%3
Nonprofit & AssociationsCommercial Auto$158$1,8973%13
Nonprofit & AssociationsWorkers' Comp$66$79541%13
Nonprofit & AssociationsGeneral Liability$57$682-54%9
Nonprofit & AssociationsCyber Insurance$57$67932%3
Nonprofit & AssociationsCommercial Property$43$52165%12
Nonprofit & AssociationsProfessional Liability$38$45233%5
Other Professional ServicesCommercial Auto$214$2,570-31%24
Other Professional ServicesCyber Insurance$97$1,166-17%20
Other Professional ServicesGeneral Liability$77$919-38%13
Other Professional ServicesCommercial Property$51$60859%13
Other Professional ServicesProfessional Liability$47$56916%9
Other Professional ServicesWorkers' Comp$25$30478%6
Pet Care ServicesCommercial Auto$143$1,71512%11
Pet Care ServicesCyber Insurance$77$9228%14
Pet Care ServicesGeneral Liability$76$908-38%11
Pet Care ServicesWorkers' Comp$73$87236%14
Pet Care ServicesProfessional Liability$31$37744%3
Pet Care ServicesCommercial Property$30$36276%9
Real Estate & Property ServicesCommercial Auto$128$1,54021%9
Real Estate & Property ServicesCyber Insurance$76$9148%13
Real Estate & Property ServicesProfessional Liability$73$874-29%13
Real Estate & Property ServicesGeneral Liability$48$578-61%8
Real Estate & Property ServicesWorkers' Comp$24$29278%3
Real Estate & Property ServicesCommercial Property$12$14790%1
Recreation & SportsCommercial Auto$159$1,9112%15
Recreation & SportsWorkers' Comp$125$1,497-11%19
Recreation & SportsGeneral Liability$92$1,104-25%15
Recreation & SportsCyber Insurance$56$67532%2
Recreation & SportsCommercial Property$56$67155%16
Recreation & SportsProfessional Liability$51$60810%10
Repair & MaintenanceCommercial Auto$176$2,115-8%17
Repair & MaintenanceWorkers' Comp$83$99826%17
Repair & MaintenanceCyber Insurance$79$9525%15
Repair & MaintenanceGeneral Liability$76$908-38%12
Repair & MaintenanceCommercial Property$52$63058%15
Retail & Product RentalCommercial Property$221$2,658-77%22
Retail & Product RentalCommercial Auto$164$1,969-1%16
Retail & Product RentalGeneral Liability$110$1,320-10%21
Retail & Product RentalCyber Insurance$89$1,073-7%18
Retail & Product RentalWorkers' Comp$61$72646%12
Tech/ITCyber Insurance$157$1,882-88%25
Tech/ITCommercial Auto$123$1,47825%6
Tech/ITProfessional Liability$74$888-31%14
Tech/ITWorkers' Comp$47$56258%9
Tech/ITCommercial Property$34$40773%11
Tech/ITGeneral Liability$27$328-78%1
Transportation & LogisticsCommercial Auto$349$4,188-114%25
Transportation & LogisticsWorkers' Comp$343$4,110-204%25
Transportation & LogisticsGeneral Liability$83$999-32%14
Transportation & LogisticsCommercial Property$66$79647%17
Transportation & LogisticsCyber Insurance$60$72428%4
Wholesale & DistributionCommercial Property$480$5,756-284%25
Wholesale & DistributionWorkers' Comp$204$2,449-81%23
Wholesale & DistributionCommercial Auto$177$2,126-9%18
Wholesale & DistributionGeneral Liability$107$1,285-13%20
Wholesale & DistributionCyber Insurance$68$81319%6

What Costs in This Table Are Based On

Explore In-Depth Industry Small Business Insurance Cost Guides

For small business insurance cost guides specific to your industry, check out the links below.

Average Small Business Insurance Costs by Coverage Type and State

Coverage type is the biggest driver in state-level variations in the cost of small business insurance. For example, general liability, professional liability and cyber insurance range from $50 per month to $190 per month. Workers’ comp, commercial auto and commercial property coverage cost anywhere from $63 per month to $312 per month.

Midwestern states feature the lowest costs for small business insurance policies, averaging $102 per month. At $124 per month, the Northeast is the most expensive region. The biggest differences between those two areas are general liability ($109 per month vs. $144 per month) and workers’ comp ($90 per month vs. $158 per month).

Filter the table below to see where your state falls across each coverage type. Note that workers' comp rates presented are per-employee rates and commercial auto is for a single vehicle.

Data filtered by:
Select
PennsylvaniaCommercial Auto$79$94752%1
HawaiiCommercial Auto$86$1,02947%2
VermontCommercial Auto$92$1,09844%3
IowaCommercial Auto$97$1,16940%4
IdahoCommercial Auto$106$1,26635%5
New HampshireCommercial Auto$115$1,38129%6
WisconsinCommercial Auto$119$1,42727%7
North DakotaCommercial Auto$128$1,53722%8
New MexicoCommercial Auto$130$1,56220%9
MontanaCommercial Auto$131$1,57420%10
DelawareCommercial Auto$133$1,59419%11
AlabamaCommercial Auto$135$1,61418%12
NebraskaCommercial Auto$135$1,62317%13
WyomingCommercial Auto$140$1,68414%14
KansasCommercial Auto$142$1,70013%15
TennesseeCommercial Auto$145$1,73911%16
OklahomaCommercial Auto$145$1,74311%17
ArkansasCommercial Auto$146$1,75011%18
UtahCommercial Auto$147$1,76310%19
ArizonaCommercial Auto$149$1,7839%20
West VirginiaCommercial Auto$152$1,8197%21
KentuckyCommercial Auto$155$1,8555%22
MississippiCommercial Auto$155$1,8565%23
GeorgiaCommercial Auto$156$1,8665%24
WashingtonCommercial Auto$157$1,8814%25
IndianaCommercial Auto$157$1,8814%26
OregonCommercial Auto$158$1,8933%27
South CarolinaCommercial Auto$158$1,9013%28
OhioCommercial Auto$160$1,9252%29
MinnesotaCommercial Auto$161$1,9341%30
North CarolinaCommercial Auto$164$1,9650%31
NevadaCommercial Auto$167$2,000-2%32
ColoradoCommercial Auto$167$2,004-2%33
VirginiaCommercial Auto$173$2,071-6%34
LouisianaCommercial Auto$179$2,153-10%35
IllinoisCommercial Auto$179$2,153-10%36
MaineCommercial Auto$184$2,204-12%37
South DakotaCommercial Auto$185$2,215-13%38
MissouriCommercial Auto$185$2,221-13%39
ConnecticutCommercial Auto$193$2,321-18%40
MarylandCommercial Auto$195$2,345-20%41
Rhode IslandCommercial Auto$201$2,408-23%42
MassachusettsCommercial Auto$202$2,430-24%43
CaliforniaCommercial Auto$209$2,503-28%44
New JerseyCommercial Auto$209$2,505-28%45
New YorkCommercial Auto$211$2,537-29%46
TexasCommercial Auto$220$2,644-35%47
Washington D.C.Commercial Auto$224$2,694-37%48
FloridaCommercial Auto$230$2,763-41%49
AlaskaCommercial Auto$271$3,247-66%50
MichiganCommercial Auto$312$3,746-91%51
North DakotaCommercial Property$109$1,30913%1
South DakotaCommercial Property$110$1,32012%2
NebraskaCommercial Property$110$1,32412%3
IowaCommercial Property$111$1,33311%4
KansasCommercial Property$111$1,33511%5
ArkansasCommercial Property$112$1,35010%6
West VirginiaCommercial Property$113$1,35110%7
WyomingCommercial Property$113$1,35310%8
MissouriCommercial Property$114$1,3639%9
MississippiCommercial Property$114$1,3639%10
OklahomaCommercial Property$114$1,3718%11
KentuckyCommercial Property$115$1,3788%12
IndianaCommercial Property$115$1,3798%13
MontanaCommercial Property$115$1,3838%14
New MexicoCommercial Property$116$1,3937%15
AlabamaCommercial Property$116$1,3947%16
WisconsinCommercial Property$117$1,4076%17
TennesseeCommercial Property$119$1,4225%18
IdahoCommercial Property$119$1,4225%19
OhioCommercial Property$119$1,4235%20
MichiganCommercial Property$119$1,4245%21
MaineCommercial Property$119$1,4314%22
VermontCommercial Property$120$1,4414%23
South CarolinaCommercial Property$122$1,4652%24
UtahCommercial Property$122$1,4662%25
MinnesotaCommercial Property$122$1,4672%26
GeorgiaCommercial Property$124$1,4831%27
New HampshireCommercial Property$124$1,4851%28
North CarolinaCommercial Property$124$1,4900%29
ArizonaCommercial Property$125$1,4960%30
VirginiaCommercial Property$127$1,518-1%31
NevadaCommercial Property$127$1,525-2%32
IllinoisCommercial Property$128$1,540-3%33
LouisianaCommercial Property$129$1,548-3%34
ColoradoCommercial Property$130$1,554-4%35
OregonCommercial Property$131$1,569-5%36
DelawareCommercial Property$131$1,575-5%37
TexasCommercial Property$132$1,585-6%38
PennsylvaniaCommercial Property$132$1,588-6%39
WashingtonCommercial Property$135$1,615-8%40
MarylandCommercial Property$135$1,618-8%41
Rhode IslandCommercial Property$136$1,632-9%42
AlaskaCommercial Property$138$1,657-11%43
ConnecticutCommercial Property$140$1,677-12%44
FloridaCommercial Property$140$1,682-12%45
MassachusettsCommercial Property$142$1,706-14%46
CaliforniaCommercial Property$144$1,730-16%47
New JerseyCommercial Property$145$1,743-16%48
Washington D.C.Commercial Property$146$1,750-17%49
HawaiiCommercial Property$147$1,760-17%50
New YorkCommercial Property$150$1,794-20%51
WyomingCyber Insurance$71$84915%1
AlaskaCyber Insurance$71$84915%2
North DakotaCyber Insurance$71$84915%3
South DakotaCyber Insurance$72$86813%6
West VirginiaCyber Insurance$72$86813%7
NebraskaCyber Insurance$75$89710%8
VermontCyber Insurance$75$89710%9
IowaCyber Insurance$75$89710%10
New HampshireCyber Insurance$75$89710%11
MaineCyber Insurance$75$89710%12
Rhode IslandCyber Insurance$75$89710%13
HawaiiCyber Insurance$75$89710%14
ArkansasCyber Insurance$76$9178%15
MississippiCyber Insurance$76$9178%16
New MexicoCyber Insurance$76$9178%17
OklahomaCyber Insurance$79$9465%18
KansasCyber Insurance$79$9465%19
UtahCyber Insurance$79$9465%20
LouisianaCyber Insurance$80$9653%21
KentuckyCyber Insurance$80$9653%22
South CarolinaCyber Insurance$80$9653%23
AlabamaCyber Insurance$80$9653%24
IndianaCyber Insurance$83$9941%25
WisconsinCyber Insurance$83$9941%26
MissouriCyber Insurance$83$9941%27
TennesseeCyber Insurance$83$9941%28
ArizonaCyber Insurance$85$1,013-2%29
MinnesotaCyber Insurance$85$1,013-2%30
OhioCyber Insurance$85$1,013-2%31
MichiganCyber Insurance$85$1,013-2%32
PennsylvaniaCyber Insurance$87$1,042-4%33
OregonCyber Insurance$87$1,042-4%34
North CarolinaCyber Insurance$87$1,042-4%35
GeorgiaCyber Insurance$88$1,061-6%36
FloridaCyber Insurance$90$1,080-8%37
TexasCyber Insurance$90$1,081-8%38
ColoradoCyber Insurance$90$1,081-8%39
MontanaCyber Insurance$71$84915%4
DelawareCyber Insurance$92$1,109-11%40
WashingtonCyber Insurance$92$1,109-11%41
VirginiaCyber Insurance$92$1,109-11%42
NevadaCyber Insurance$92$1,110-11%43
MarylandCyber Insurance$95$1,138-14%44
ConnecticutCyber Insurance$95$1,139-14%45
IllinoisCyber Insurance$95$1,139-14%46
MassachusettsCyber Insurance$95$1,139-14%47
New JerseyCyber Insurance$96$1,158-16%48
CaliforniaCyber Insurance$98$1,177-18%49
New YorkCyber Insurance$101$1,206-21%50
Washington D.C.Cyber Insurance$103$1,235-24%51
IdahoCyber Insurance$72$86813%5
West VirginiaGeneral Liability$87$1,041-29%1
MississippiGeneral Liability$89$1,074-27%2
South DakotaGeneral Liability$91$1,088-26%3
IowaGeneral Liability$95$1,135-23%4
South CarolinaGeneral Liability$96$1,154-22%6
North DakotaGeneral Liability$96$1,156-22%7
IdahoGeneral Liability$97$1,166-21%8
ArkansasGeneral Liability$99$1,185-20%9
AlabamaGeneral Liability$100$1,198-19%10
OklahomaGeneral Liability$100$1,201-19%11
KansasGeneral Liability$102$1,222-17%12
KentuckyGeneral Liability$102$1,222-17%13
New MexicoGeneral Liability$102$1,226-17%14
NebraskaGeneral Liability$105$1,257-15%15
MissouriGeneral Liability$105$1,258-15%16
LouisianaGeneral Liability$106$1,267-14%17
WyomingGeneral Liability$106$1,269-14%18
IndianaGeneral Liability$106$1,272-14%19
WisconsinGeneral Liability$108$1,297-12%20
UtahGeneral Liability$110$1,319-11%21
OhioGeneral Liability$110$1,322-10%22
MontanaGeneral Liability$95$1,139-23%5
North CarolinaGeneral Liability$112$1,341-9%23
MaineGeneral Liability$112$1,344-9%24
TennesseeGeneral Liability$112$1,346-9%25
MichiganGeneral Liability$115$1,381-6%26
GeorgiaGeneral Liability$121$1,451-2%27
TexasGeneral Liability$122$1,462-1%28
VermontGeneral Liability$122$1,465-1%29
ArizonaGeneral Liability$122$1,4700%30
PennsylvaniaGeneral Liability$129$1,5455%31
MinnesotaGeneral Liability$129$1,5525%32
Rhode IslandGeneral Liability$130$1,5566%33
DelawareGeneral Liability$131$1,5676%34
NevadaGeneral Liability$131$1,5727%35
New HampshireGeneral Liability$135$1,61510%36
VirginiaGeneral Liability$136$1,62710%37
OregonGeneral Liability$138$1,65412%38
IllinoisGeneral Liability$141$1,69015%39
FloridaGeneral Liability$144$1,73217%40
ColoradoGeneral Liability$146$1,75519%41
AlaskaGeneral Liability$151$1,81523%42
WashingtonGeneral Liability$153$1,83424%43
MarylandGeneral Liability$155$1,85926%44
ConnecticutGeneral Liability$159$1,90629%45
HawaiiGeneral Liability$159$1,91330%46
New JerseyGeneral Liability$160$1,91630%47

Where Pricing in This Table Comes From

Average Small Business Insurance Cost by Coverage Type and Business Size

Insurance costs don’t rise equally as a business grows. According to our pricing research, general liability gets aggressively more expensive as headcount grows. Commercial property and cyber insurance increase steadily. On the other hand, professional liability insurance prices increase modestly as a business grows, and workers’ comp prices decrease per employee as you hire more people.

Filter the table below to understand what business insurance costs for your employee count band by coverage type.

Data filtered by:
Select
20 to 49General Liability$2,298$27,581
10 to 19General Liability$872$10,461
20 to 49Commercial Property$409$4,905
5 to 9General Liability$330$3,959
10 to 19Commercial Property$300$3,598
20 to 49Cyber Insurance$283$3,398
5 to 9Commercial Property$225$2,703
10 to 19Cyber Insurance$179$2,148
1 to 4Commercial Property$125$1,498
1 to 4General Liability$123$1,474
5 to 9Cyber Insurance$121$1,449
1 to 4Workers' Comp$113$1,354
5 to 9Workers' Comp$102$1,225
20 to 49Professional Liability$98$1,181
10 to 19Workers' Comp$95$1,137
20 to 49Workers' Comp$89$1,064
1 to 4Cyber Insurance$83$999
10 to 19Professional Liability$82$979
5 to 9Professional Liability$68$810
0Cyber Insurance$67$799
0General Liability$65$784
1 to 4Professional Liability$56$675
0Professional Liability$38$452
0Commercial Property$26$316

Where Do Rates In This Table Come From

How to Control the Cost of Small Business Insurance

The following strategies represent the most effective ways to reduce your premiums both immediately and over time, ordered from fastest and most effective to longer-term.

  1. 1

    Compare quotes for the same coverage

    Comparing quotes across insurers can save you over 30% depending on your business profile and coverage type, but only if you're comparing equivalent policies. Insurers routinely structure quotes with different coverage limits, deductibles, and exclusions, making cheaper quotes appear more attractive than they are. To compare accurately, ensure each quote reflects the same coverage limits, the same deductible levels, and the same policy structure. Using an independent broker or a comparison platform that standardizes inputs is the most reliable way to ensure you're making a true cost comparison.

  2. 2

    Bundle policies with the same insurer

    Purchasing multiple policies from the same insurance company can reduce your total premium by up to 20%, with the discount applied against the combined policy value. The most common and accessible bundle for small businesses is a Business Owner's Policy (BOP), which combines general liability and commercial property coverage into a single policy at a reduced rate. Adding additional lines like workers' comp or commercial auto with the same insurer may yield further discounts, depending on the provider.

  3. 3

    Pay annually instead of monthly

    Paying your premium annually rather than monthly can save up to 13% on your total cost, similar in structure to bundling discounts and applied against the total policy value. Not all insurers advertise this option prominently, so it is worth asking for explicitly when getting a quote. For businesses with predictable cash flow, this is one of the simplest and most immediate savings available.

  4. 4

    Implement and document risk reduction strategies

    Insurers price risk, and businesses that can demonstrate active efforts to reduce their exposure are often rewarded with lower premiums at renewal. Relevant strategies include implementing workplace safety programs, establishing formal data security protocols for cyber coverage, maintaining clean vehicle records for commercial auto, and documenting incident response procedures. The key is not just implementing these measures, but being able to present them to your insurer, as undocumented risk reduction carries little weight in the underwriting process.

  5. 5

    Review your business insurance policy needs every year

    Your policy type and coverage amount may change as your business grows and evolves. Reviewing your policies annually ensures you are not underinsured or overpaying for coverage limits that exceed your current risk profile. Common examples include businesses that have downsized but are still paying premiums based on higher employee counts, or businesses that have expanded into new services without updating their professional liability limits.

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YOU CAN NEGOTIATE SMALL BUSINESS INSURANCE PREMIUMS

Business insurance premiums are negotiable, particularly at renewal. Insurers value long-term customers and will often match or beat a competing quote rather than lose an established account. Your negotiating position strengthens over time with a clean claims history and documented risk reduction, so coming to renewal with a competing quote in hand is the single most effective tactic. Independent brokers are particularly useful here as they can advocate across multiple carriers simultaneously.

To estimate average small business insurance costs,  analyzed quote data from major U.S. commercial insurance providers and modeled standardized premium estimates across company profiles that represent the vast majority of the market (around 95%). These modeled results are designed to provide a consistent national benchmark and show how premiums vary by key baseline factors including business size, profession type, location and vehicle type (for auto coverage).

Dataset Scope and Assumptions

Our cost modeling uses standardized inputs for consistent comparisons across businesses.

  • Total estimates modeled: just over 6 million standardized pricing estimates
  • Providers analyzed: 10 major insurance providers
  • Professions covered: 408 industries (organized into 25 general business categories for easy analysis)
  • Geography: all U.S. states (including Washington, D.C.)
  • Employee count bands: solo practitioners, one to four, five to nine, 10 to 19, and 20 to 49 employees
  • Vehicle types studied: Sedans, SUVs, pickup trucks, vans, taxis, limousines, tractors, food trucks, semi-trucks (non-HAZMAT and HAZMAT), tanker trucks (non-HAZMAT and HAZMAT), buses, box trucks, dump trucks, flatbed trucks
  • Policies studied: General liability, workers' comp, professional liability, commercial auto, commercial property and cyber insurance
    • General liability baseline: $1 million per occurrence and $2 million aggregate
    • Workers' Comp: State required coverage
    • Professional liability: $1 million per claim and $1 million aggregate
    • Commercial auto: Minimum coverage
    • Commercial property: Personal property coverage limits personalized to industry, business sizes and state.
    • Cyber insurance: $1 million per occurrence and $1 million aggregate

I also incorporated modeled average revenue, payroll, and claims history personalized across all combinations of states, profession type, and employee counts to improve the accuracy of pricing. To model these assumptions against our cost factors, I used data from these sources:

  • CBP (for employee size class density by state + NAICS)
  • QCEW (for wage/payroll intensity by profession + geography)
  • Economic Census / SUSB (for receipts/output intensity by profession)
  • Calibrated against:
    • Private comp databases
    • IRS SOI totals

How I Calculated Average Small Business Insurance Costs

Our published averages represent modeled premiums for standardized business profiles and were aggregated in two ways:

  • National benchmark average: The national average cost reflects the modeled premium for a standardized one to four-employee business across all professions and states included in our dataset for a standard professional liability policy.
  • Segment averages: To show how costs vary, I calculated average modeled premiums for our national base profile and isolated for variables, including:
    • Employee count (business size ranges)
    • Profession / industry categories
    • Vehicle types (for commercial auto
    • States (including Washington, D.C.)

Segment averages were produced by aggregating modeled pricing trends across the full dataset so readers can compare how premiums shift across profession types and regions.

Read Our Full Methodology

About Connor Bolton

Connor Bolton, Senior SEO and Content Manager (Business & Pet), MoneyGeek

Connor Bolton is Senior SEO and Content Manager at MoneyGeek, where he leads the business and pet insurance editorial teams. He sets the research framework, data standards and content structure for his team. All content goes through his accuracy review before publication. Connor also writes in-depth guides and has spent more than four years covering insurance products across personal, commercial and specialty lines.

The research infrastructure Connor built covers auto, home, renters, life, health, business and pet insurance across pricing analysis, carrier research, customer experience and coverage evaluation. It includes over 6 million data points for business insurance across 408 industry areas, all 50 states and 16 vehicle types. The pet insurance side covers over 5 million profiles across 18 major providers, 100+ breeds and ages up to 20 years. Connor’s insurance research and his team's work have been cited by the U.S. Chamber of Commerce, Allstate, Liberty Mutual, CBS News, Forbes and LegalZoom.

Connor also talks with underwriters and carrier liaisons at Ethos, The Hartford, ERGO NEXT, Nationwide and State Farm, and monitors business and pet owner communities on Reddit. Those sources shape how his team evaluates carriers, structures rate analysis and writes content for real pet owners.

Questions about MoneyGeek's business or pet insurance content? Reach him at connor@moneygeek.com or on LinkedIn.

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