Manufacturing business insurance costs vary across coverage types, and understanding these differences helps you budget effectively. MoneyGeek's analysis shows monthly premiums range from $38 for business owner's policy (BOP) coverage to $65 for general liability protection.
How Much Does Manufacturing Business Insurance Cost?
Business insurance for manufacturing companies starts at $38 per month. Your specific business details, coverage needs and risk factors will determine your rate.
Discover cheap manufacturing business insurance below.
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Updated: August 19, 2025
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Key Takeaways
Manufacturing business insurance costs range from $38 to $65 monthly, with business owner policies offering the most affordable rates.
Your manufacturing 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 manufacturing business insurance costs.
Average Manufacturing Business Insurance Cost Overall
| BOP | $38 |
| General Liability | $65 |
| Professional Liability (E&O) | $60 |
| Workers' Comp | $59 |
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.
Manufacturing Business Insurance Cost for General Liability Coverage by State
Your manufacturing business insurance cost for general liability coverage depends on where you operate. North Carolina offers the most savings at $56 monthly (versus the $65 national average), while Hawaii costs $96 monthly, giving you concrete data for business planning.
| Alabama | $63 |
| Alaska | $83 |
| Arizona | $61 |
| Arkansas | $62 |
| California | $71 |
| Colorado | $64 |
| Connecticut | $70 |
| Delaware | $69 |
| Florida | $69 |
| Georgia | $65 |
| Hawaii | $96 |
| Idaho | $61 |
| Illinois | $70 |
| Indiana | $63 |
| Iowa | $61 |
| Kansas | $62 |
| Kentucky | $60 |
| Louisiana | $85 |
| Maine | $56 |
| Maryland | $61 |
| Massachusetts | $67 |
| Michigan | $61 |
| Minnesota | $60 |
| Mississippi | $65 |
| Missouri | $64 |
| Montana | $64 |
| Nebraska | $61 |
| Nevada | $73 |
| New Hampshire | $64 |
| New Jersey | $73 |
| New Mexico | $65 |
| New York | $74 |
| North Carolina | $56 |
| North Dakota | $56 |
| Ohio | $60 |
| Oklahoma | $65 |
| Oregon | $60 |
| Pennsylvania | $74 |
| Rhode Island | $71 |
| South Carolina | $66 |
| South Dakota | $60 |
| Tennessee | $63 |
| Texas | $65 |
| Utah | $61 |
| Vermont | $62 |
| Virginia | $59 |
| Washington | $73 |
| West Virginia | $67 |
| Wisconsin | $63 |
| Wyoming | $59 |
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.
Manufacturing Business Insurance Cost for Workers’ Compensation Coverage by State
Your manufacturing business's cost for workers' compensation varies by state. North Carolina offers the lowest rates at $50 monthly and New York the highest at $69 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $58 |
| Alaska | $53 |
| Arizona | $56 |
| Arkansas | $56 |
| California | $66 |
| Colorado | $58 |
| Connecticut | $64 |
| Delaware | $64 |
| Florida | $64 |
| Georgia | $59 |
| Hawaii | $62 |
| Idaho | $56 |
| Illinois | $64 |
| Indiana | $58 |
| Iowa | $56 |
| Kansas | $57 |
| Kentucky | $55 |
| Louisiana | $67 |
| Maine | $51 |
| Maryland | $56 |
| Massachusetts | $62 |
| Michigan | $56 |
| Minnesota | $55 |
| Mississippi | $59 |
| Missouri | $58 |
| Montana | $58 |
| Nebraska | $56 |
| Nevada | $67 |
| New Hampshire | $58 |
| New Jersey | $67 |
| New Mexico | $60 |
| New York | $69 |
| North Carolina | $50 |
| Oklahoma | $56 |
| Oregon | $55 |
| Pennsylvania | $68 |
| Rhode Island | $65 |
| South Carolina | $60 |
| South Dakota | $55 |
| Tennessee | $58 |
| Texas | $60 |
| Utah | $56 |
| Vermont | $57 |
| Virginia | $54 |
| West Virginia | $62 |
| Wisconsin | $58 |
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.
Manufacturing Business Insurance Cost for Professional Liability Coverage by State
Like other insurance types, cost for professional liability varies by state for manufacturing businesses. While the national average is $60 monthly, Maine offers the lowest rates at $52 monthly for professional liability E&O insurance, and Washington charges the highest at $69 monthly.
| Alabama | $59 |
| Alaska | $54 |
| Arizona | $57 |
| Arkansas | $57 |
| California | $66 |
| Colorado | $59 |
| Connecticut | $65 |
| Delaware | $65 |
| Florida | $65 |
| Georgia | $61 |
| Hawaii | $62 |
| Idaho | $57 |
| Illinois | $67 |
| Indiana | $58 |
| Iowa | $58 |
| Kansas | $57 |
| Kentucky | $57 |
| Louisiana | $67 |
| Maine | $52 |
| Maryland | $57 |
| Massachusetts | $64 |
| Michigan | $56 |
| Minnesota | $57 |
| Mississippi | $60 |
| Missouri | $58 |
| Montana | $59 |
| Nebraska | $57 |
| Nevada | $67 |
| New Hampshire | $59 |
| New Jersey | $66 |
| New Mexico | $59 |
| New York | $67 |
| North Carolina | $52 |
| North Dakota | $53 |
| Ohio | $56 |
| Oklahoma | $55 |
| Oregon | $54 |
| Pennsylvania | $68 |
| Rhode Island | $66 |
| South Carolina | $62 |
| South Dakota | $56 |
| Tennessee | $57 |
| Texas | $60 |
| Utah | $56 |
| Vermont | $57 |
| Virginia | $55 |
| Washington | $69 |
| West Virginia | $63 |
| Wisconsin | $60 |
| Wyoming | $56 |
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.
Manufacturing Business Insurance Cost for BOP Coverage by State
Business owner's policy rates show substantial variation in manufacturing insurance costs across states. For example, Louisiana businesses pay $45 monthly for coverage, while North Carolina manufacturers spend just $33 for the same policy.
| Alabama | $37 |
| Alaska | $35 |
| Arizona | $36 |
| Arkansas | $37 |
| California | $43 |
| Colorado | $37 |
| Connecticut | $41 |
| Delaware | $40 |
| Florida | $41 |
| Georgia | $38 |
| Hawaii | $41 |
| Idaho | $35 |
| Illinois | $42 |
| Indiana | $37 |
| Iowa | $36 |
| Kansas | $37 |
| Kentucky | $35 |
| Louisiana | $45 |
| Maine | $34 |
| Maryland | $35 |
| Massachusetts | $40 |
| Michigan | $36 |
| Minnesota | $36 |
| Mississippi | $37 |
| Missouri | $38 |
| Montana | $37 |
| Nebraska | $36 |
| Nevada | $43 |
| New Hampshire | $38 |
| New Jersey | $42 |
| New Mexico | $38 |
| New York | $44 |
| North Carolina | $33 |
| North Dakota | $33 |
| Ohio | $35 |
| Oklahoma | $36 |
| Oregon | $35 |
| Pennsylvania | $44 |
| Rhode Island | $41 |
| South Carolina | $39 |
| South Dakota | $36 |
| Tennessee | $37 |
| Texas | $39 |
| Utah | $35 |
| Vermont | $36 |
| Virginia | $35 |
| Washington | $43 |
| West Virginia | $40 |
| Wisconsin | $38 |
| Wyoming | $35 |
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 Manufacturing Business Insurance Cost
Manufacturing business insurance costs vary based on several factors that insurance companies evaluate to set premiums. Understanding these factors helps you create more accurate budgets. Here's how different elements affect your rates.
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.
Services offered
Different manufacturing processes carry varying risk levels. Companies producing basic consumer goods face lower premiums than those handling hazardous materials or operating complex machinery.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A small manufacturer with $200,000 in revenue pays less than a large operation generating $2 million annually.
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.
Equipment and vehicle values
More expensive manufacturing equipment requires higher coverage limits, increasing your premiums. A facility using industrial machinery worth hundreds of thousands will pay more for equipment coverage than one using basic tools and equipment.
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 Manufacturing Business Insurance
Manufacturing business insurance costs can be reduced through strategic shopping and smart risk management practices, and the proven strategies below will help lower your premiums both now and as your safety record improves.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your manufacturing operation needs prevents overpaying for unnecessary coverage. General liability protects against customer injuries and property damage, while equipment breakdown coverage safeguards your machinery. Workers compensation is essential for employee protection, and product liability coverage shields against defective product claims.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between carriers for identical manufacturing coverage. Request quotes from at least three companies to find the best rates. Consider working with an independent agent who specializes in manufacturing insurance to handle comparisons for you.
- 3
Bundle your coverage types
Insurance carriers offer substantial discounts for bundled policies. Combining general liability, property insurance, and equipment coverage with one provider typically costs less than separate policies from different insurers. Ask about business owner policies (BOPs) designed for manufacturers.
- 4
Increase your deductibles
Selecting higher deductibles reduces your monthly premium costs. This approach means taking on more financial responsibility for smaller claims, but it can significantly lower your regular insurance expenses. Choose deductible levels that align with your risk tolerance and cash reserves.
- 5
Pay annually instead of monthly
Most insurance providers add processing fees for monthly payment plans. Paying your full premium annually eliminates these extra charges and often qualifies you for additional discounts. This strategy requires more upfront capital but reduces total insurance costs.
- 6
Review and adjust your coverage annually
Manufacturing operations evolve, and so should your insurance coverage. Review your policies yearly to ensure they match your current operations, equipment values, and employee count. Remove unnecessary coverage and adjust limits to reflect your actual business needs and risk exposure.
Insurance for Manufacturing Business Cost: Bottom Line
Manufacturing business insurance costs range from $38 to $65 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Manufacturing Business Insurance Cost: FAQ
Business owners frequently ask about manufacturing company insurance costs, from general liability to workers' compensation coverage. Here are straightforward answers to common questions.
What is the cheapest type of manufacturing business insurance?
Business owner's policy (BOP) is the most cost-effective at $38 monthly. However, most manufacturing businesses opt for general liability insurance to protect against customer injuries and property damage.
How much can I save by bundling my manufacturing business insurance policies?
BOP insurance is the most cost-effective option, averaging $38 per month. Bundling multiple coverages into a BOP provides better value than purchasing separate policies.
What factors make my manufacturing business insurance more expensive?
Insurance can be expensive depending on location risks, claims history, safety issues, business size and worker count.
Should I choose a $500 or $2,500 deductible for my manufacturing business insurance?
Higher deductibles lower your monthly premium costs but require larger out-of-pocket payments when filing claims. Base your choice on available cash reserves and claim frequency expectations.
How much does workers' compensation cost for manufacturing businesses by state?
Workers' compensation costs for manufacturing businesses vary by state, ranging from $50 monthly in North Carolina to $69 monthly in New York, with rates reflecting local risk factors.
Is business owner's policy (BOP) worth the extra cost for manufacturing companies?
Manufacturing business owners pay an average of $38 monthly for BOP insurance. The combined coverage for general liability, property and business interruption offers more value than purchasing individual policies.
How often should I shop around for manufacturing business insurance quotes?
Shop for new manufacturing insurance quotes annually at renewal time. Compare at least three carriers to find better rates, particularly when your business experiences significant changes.
How We Determined Manufacturing Business Insurance Costs
We collected manufacturing business insurance quotes from companies across different states. For consistent comparisons, 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 manufacturing 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 manufacturing 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.