Home-based business insurance costs vary significantly based on coverage type, helping you plan your budget effectively. MoneyGeek's analysis shows monthly premiums range from $10 for workers' compensation to $37 for professional liability coverage.
How Much Does Home-Based Business Insurance Cost?
Home-based business insurance costs as little as $10 per month, though your specific business details and coverage needs will determine your final rate.
Discover cheap home-based business insurance below.
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Updated: September 4, 2025
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Key Takeaways
Home-based business insurance costs range from $10 to $37 monthly, depending on your coverage type.
Your home-based insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable home-based business insurance costs.
Average Home-Based Business Insurance Cost Overall
| BOP | $35 |
| General Liability | $24 |
| Professional Liability (E&O) | $37 |
| Workers Comp | $10 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Home-Based Business Insurance Cost for General Liability Coverage by State
Your home-based business insurance cost for general liability coverage depends on where you operate. Wyoming offers the most savings at $22 monthly versus the $35 national average, while West Virginia costs $48 monthly, giving you concrete data for business planning.
| Alabama | $23 | $281 |
| Alaska | $23 | $272 |
| Arizona | $23 | $275 |
| Arkansas | $23 | $275 |
| California | $27 | $319 |
| Colorado | $24 | $284 |
| Connecticut | $26 | $311 |
| Delaware | $26 | $308 |
| Florida | $26 | $310 |
| Georgia | $24 | $291 |
| Hawaii | $26 | $307 |
| Idaho | $23 | $272 |
| Illinois | $26 | $315 |
| Indiana | $23 | $279 |
| Iowa | $23 | $273 |
| Kansas | $23 | $278 |
| Kentucky | $22 | $270 |
| Louisiana | $27 | $320 |
| Maine | $21 | $248 |
| Maryland | $23 | $273 |
| Massachusetts | $25 | $301 |
| Michigan | $23 | $272 |
| Minnesota | $22 | $269 |
| Mississippi | $24 | $288 |
| Missouri | $24 | $283 |
| Montana | $24 | $285 |
| Nebraska | $23 | $271 |
| Nevada | $27 | $329 |
| New Hampshire | $24 | $285 |
| New Jersey | $27 | $325 |
| New Mexico | $24 | $288 |
| New York | $28 | $333 |
| North Carolina | $21 | $248 |
| North Dakota | $21 | $249 |
| Ohio | $22 | $266 |
| Oklahoma | $22 | $268 |
| Oregon | $22 | $266 |
| Pennsylvania | $28 | $331 |
| Rhode Island | $26 | $315 |
| South Carolina | $25 | $295 |
| South Dakota | $22 | $268 |
| Tennessee | $23 | $279 |
| Texas | $24 | $289 |
| Utah | $23 | $276 |
| Vermont | $23 | $275 |
| Virginia | $22 | $261 |
| Washington | $27 | $326 |
| West Virginia | $25 | $301 |
| Wisconsin | $23 | $281 |
| Wyoming | $22 | $265 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Home-Based Business Insurance Cost for Workers’ Compensation Coverage by State
Your home-based business cost for workers' compensation varies by state. Maine offers the lowest rates at $9 monthly and New York the highest at $12 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $10 |
| Alaska | $9 |
| Arizona | $10 |
| Arkansas | $10 |
| California | $11 |
| Colorado | $10 |
| Connecticut | $11 |
| Delaware | $11 |
| Florida | $11 |
| Georgia | $10 |
| Hawaii | $11 |
| Idaho | $9 |
| Illinois | $11 |
| Indiana | $10 |
| Iowa | $10 |
| Kansas | $10 |
| Kentucky | $9 |
| Louisiana | $11 |
| Maine | $9 |
| Maryland | $10 |
| Massachusetts | $11 |
| Michigan | $9 |
| Minnesota | $9 |
| Mississippi | $10 |
| Missouri | $10 |
| Montana | $10 |
| Nebraska | $9 |
| Nevada | $11 |
| New Hampshire | $10 |
| New Jersey | $11 |
| New Mexico | $10 |
| New York | $12 |
| North Carolina | $9 |
| Oklahoma | $9 |
| Oregon | $9 |
| Pennsylvania | $12 |
| Rhode Island | $11 |
| South Carolina | $10 |
| South Dakota | $9 |
| Tennessee | $10 |
| Texas | $10 |
| Utah | $10 |
| Vermont | $10 |
| Virginia | $9 |
| West Virginia | $11 |
| Wisconsin | $10 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Home-Based Business Insurance Cost for Professional Liability Coverage by State
Professional liability insurance cost for professional liability varies significantly by state, just like other business coverage types. Our research shows that E&O insurance rates depend on your location and specific business risks.
| Alabama | $37 | $439 |
| Alaska | $33 | $400 |
| Arizona | $36 | $427 |
| Arkansas | $37 | $441 |
| California | $41 | $492 |
| Colorado | $36 | $436 |
| Connecticut | $41 | $487 |
| Delaware | $40 | $481 |
| Florida | $40 | $483 |
| Georgia | $38 | $461 |
| Hawaii | $38 | $461 |
| Idaho | $36 | $427 |
| Illinois | $41 | $488 |
| Indiana | $36 | $435 |
| Iowa | $35 | $424 |
| Kansas | $36 | $428 |
| Kentucky | $34 | $408 |
| Louisiana | $42 | $501 |
| Maine | $32 | $383 |
| Maryland | $35 | $423 |
| Massachusetts | $39 | $464 |
| Michigan | $35 | $424 |
| Minnesota | $35 | $422 |
| Mississippi | $37 | $450 |
| Missouri | $36 | $435 |
| Montana | $37 | $443 |
| Nebraska | $35 | $418 |
| Nevada | $42 | $509 |
| New Hampshire | $37 | $445 |
| New Jersey | $43 | $511 |
| New Mexico | $37 | $438 |
| New York | $43 | $514 |
| North Carolina | $32 | $387 |
| North Dakota | $32 | $388 |
| Ohio | $34 | $409 |
| Oklahoma | $35 | $416 |
| Oregon | $34 | $413 |
| Pennsylvania | $43 | $511 |
| Rhode Island | $40 | $482 |
| South Carolina | $38 | $457 |
| South Dakota | $35 | $424 |
| Tennessee | $36 | $436 |
| Texas | $39 | $462 |
| Utah | $35 | $420 |
| Vermont | $36 | $431 |
| Virginia | $34 | $403 |
| Washington | $42 | $502 |
| West Virginia | $39 | $464 |
| Wisconsin | $37 | $444 |
| Wyoming | $35 | $416 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Home-Based Business Insurance Cost for BOP Coverage by State
Business owner's policy rates show variation in home-based business insurance costs nationwide. Monthly premiums range from $30 in North Carolina to $41 in New York.
| Alabama | $35 |
| Alaska | $33 |
| Arizona | $34 |
| Arkansas | $34 |
| California | $39 |
| Colorado | $34 |
| Connecticut | $38 |
| Delaware | $38 |
| Florida | $38 |
| Georgia | $35 |
| Hawaii | $36 |
| Idaho | $33 |
| Illinois | $39 |
| Indiana | $35 |
| Iowa | $34 |
| Kansas | $33 |
| Kentucky | $33 |
| Louisiana | $39 |
| Maine | $31 |
| Maryland | $34 |
| Massachusetts | $38 |
| Michigan | $33 |
| Minnesota | $33 |
| Mississippi | $36 |
| Missouri | $35 |
| Montana | $35 |
| Nebraska | $34 |
| Nevada | $40 |
| New Hampshire | $35 |
| New Jersey | $39 |
| New Mexico | $35 |
| New York | $41 |
| North Carolina | $30 |
| North Dakota | $30 |
| Ohio | $31 |
| Oklahoma | $32 |
| Oregon | $32 |
| Pennsylvania | $40 |
| Rhode Island | $38 |
| South Carolina | $35 |
| South Dakota | $33 |
| Tennessee | $34 |
| Texas | $35 |
| Utah | $34 |
| Vermont | $33 |
| Virginia | $31 |
| Washington | $40 |
| West Virginia | $38 |
| Wisconsin | $35 |
| Wyoming | $32 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Home-Based Business Insurance Cost
Home-based business insurance costs vary based on several factors that insurance companies review to set your rates. Understanding these pricing elements helps with budget planning. Here's a detailed look at what affects your insurance costs.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in tornado-prone areas or high-crime neighborhoods increases your risk profile, and state differences create substantial premium variations.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single slip-and-fall lawsuit can substantially increase your general liability rates at renewal.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding employees increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. For example, a home-based consultant earning $50,000 annually pays less than one with $500,000 in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Home-Based Business Insurance
Smart shopping and good business practices can help lower your home-based business insurance costs, and these proven strategies will show you how to reduce your premiums starting today.
- 1
Choose the right coverage types for your business
Select only the insurance coverage your home-based business needs. A home-based consulting business needs professional liability and general liability coverage, while an online retailer may need additional coverage for inventory. Review different types of business insurance to understand the best coverage that will suit your needs.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Get quotes from at least three different insurance companies. Consider working with an independent agent who can compare quotes from multiple carriers on your behalf.
- 3
Bundle your coverage types
Insurance companies often offer substantial discounts when you bundle multiple policies together. Combining general liability with property insurance or other needed coverage through one carrier typically costs less than separate policies from different providers.
- 4
Increase your deductibles
Choosing higher deductibles can significantly reduce your monthly premium costs. Consider what you can afford to pay out of pocket for potential claims and adjust your deductibles accordingly. This strategy works best if you have emergency savings to cover the higher deductible.
- 5
Pay annually instead of monthly
Most insurance carriers add processing fees to monthly payment plans. Paying your premium annually eliminates these extra charges and often qualifies you for additional discounts. Plan ahead to budget for the annual payment.
- 6
Review and adjust your coverage annually
Your business insurance needs change as your company grows. Review your coverage each year to ensure you're not paying for unnecessary protection. Update your policy limits and types of coverage to match your current business operations and risk level.
Insurance for Home-Based Business Cost: Bottom Line
Home-based business insurance costs range from $10 to $37 monthly, with your location, claims history and business size driving your actual premium, while getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Home-Based Business Insurance Cost: FAQ
Home-based business owners often ask about insurance costs before buying coverage. Here are straightforward answers to the most common questions.
What is the cheapest type of home-based business insurance?
Workers' compensation costs $10 monthly, but only covers employee injuries. Most home-based businesses need general liability coverage, which is more expensive but protects against customer accidents and property damage claims.
How much can I save by bundling my home-based business insurance policies?
Bundling multiple policies can provide additional savings through package discounts from insurers.
What factors make my home-based business insurance more expensive?
Location, claims history, services offered and employee count can make insurance more expensive.
Should I choose a $500 or $2,500 deductible for my home-based business insurance?
Higher deductibles lower your monthly premiums, but require more out-of-pocket costs when filing claims. Consider your available cash and claim likelihood when choosing your deductible.
How much does workers' compensation cost for home-based businesses by state?
Monthly workers' compensation costs for home-based businesses vary from $9 in Maine to $12 in New York, with most states falling between $9 and $11 per month.
Is a business owner's policy (BOP) worth the extra cost for home-based companies?
A business owner's policy costs $35 monthly and bundles general liability, commercial property and business interruption coverage. The combined protection offers more value than purchasing individual policies.
How often should I shop around for home-based business insurance quotes?
Review your home-based business insurance annually during renewal. Compare at least three insurers to find better rates.
How We Determined Home-Based Business Insurance Costs
We collected home-based business insurance quotes from companies across different states. To make sure we compared apples to apples, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small home-based businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the home-based industry.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.