Retail business insurance costs vary widely across coverage types, helping you plan your budget effectively. MoneyGeek's analysis shows monthly premiums range from $35 for workers' compensation to $98 for a business owner's policy (BOP).
How Much Does Retail Business Insurance Cost?
Business insurance for retail stores can cost as little as $35 per month, though your specific business details and coverage needs will determine your final rate.
Discover cheap retail business insurance below.
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Updated: August 18, 2025
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Key Takeaways
Retail business insurance costs range from $35 to $98 monthly, varying by the type of coverage needed.
Your retail insurance premiums depend on location, claims history, store types and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable retail business insurance costs.
Average Retail Business Insurance Cost Overall
| BOP | $98 |
| General Liability | $66 |
| Professional Liability (E&O) | $55 |
| Workers' Comp | $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 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.
Retail Business Insurance Cost for General Liability Coverage by State
Your retail business general liability coverage depends on where you operate. North Carolina offers the most savings at $57 monthly (versus the $66 national average), while Louisiana costs $79 monthly.
| Alabama | $64 |
| Alaska | $61 |
| Arizona | $62 |
| Arkansas | $63 |
| California | $73 |
| Colorado | $65 |
| Connecticut | $71 |
| Delaware | $70 |
| Florida | $71 |
| Georgia | $67 |
| Hawaii | $72 |
| Idaho | $62 |
| Illinois | $72 |
| Indiana | $64 |
| Iowa | $63 |
| Kansas | $64 |
| Kentucky | $61 |
| Louisiana | $79 |
| Maine | $57 |
| Maryland | $63 |
| Massachusetts | $69 |
| Michigan | $62 |
| Minnesota | $62 |
| Mississippi | $66 |
| Missouri | $65 |
| Montana | $65 |
| Nebraska | $62 |
| Nevada | $75 |
| New Hampshire | $65 |
| New Jersey | $74 |
| New Mexico | $66 |
| New York | $76 |
| North Carolina | $57 |
| North Dakota | $57 |
| Ohio | $61 |
| Oklahoma | $65 |
| Oregon | $61 |
| Pennsylvania | $76 |
| Rhode Island | $72 |
| South Carolina | $68 |
| South Dakota | $61 |
| Tennessee | $64 |
| Texas | $66 |
| Utah | $63 |
| Vermont | $63 |
| Virginia | $60 |
| Washington | $75 |
| West Virginia | $69 |
| Wisconsin | $64 |
| Wyoming | $61 |
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.
Retail Business Insurance Cost for Workers’ Compensation Coverage by State
Your retail business's cost for workers' compensation varies by state. North Carolina offers the lowest rates at $30 monthly and New York the highest at $40 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $35 |
| Alaska | $32 |
| Arizona | $33 |
| Arkansas | $34 |
| California | $39 |
| Colorado | $34 |
| Connecticut | $38 |
| Delaware | $38 |
| Florida | $38 |
| Georgia | $36 |
| Hawaii | $37 |
| Idaho | $33 |
| Illinois | $38 |
| Indiana | $34 |
| Iowa | $33 |
| Kansas | $34 |
| Kentucky | $33 |
| Louisiana | $40 |
| Maine | $30 |
| Maryland | $33 |
| Massachusetts | $36 |
| Michigan | $33 |
| Minnesota | $33 |
| Mississippi | $35 |
| Missouri | $35 |
| Montana | $35 |
| Nebraska | $33 |
| Nevada | $40 |
| New Hampshire | $35 |
| New Jersey | $40 |
| New Mexico | $35 |
| New York | $40 |
| North Carolina | $30 |
| Oklahoma | $32 |
| Oregon | $32 |
| Pennsylvania | $40 |
| Rhode Island | $38 |
| South Carolina | $36 |
| South Dakota | $33 |
| Tennessee | $34 |
| Texas | $35 |
| Utah | $33 |
| Vermont | $33 |
| Virginia | $32 |
| West Virginia | $37 |
| Wisconsin | $34 |
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.
Retail Business Insurance Cost for Professional Liability Coverage by State
The cost for professional liability varies by state for retail businesses. While the national average is $55 monthly, North Carolina offers the lowest rates at $47 monthly, and New York charges the highest at $63 for E&O insurance.
| Alabama | $54 |
| Alaska | $50 |
| Arizona | $52 |
| Arkansas | $52 |
| California | $60 |
| Colorado | $55 |
| Connecticut | $60 |
| Delaware | $59 |
| Florida | $60 |
| Georgia | $56 |
| Hawaii | $58 |
| Idaho | $52 |
| Illinois | $59 |
| Indiana | $54 |
| Iowa | $52 |
| Kansas | $53 |
| Kentucky | $50 |
| Louisiana | $63 |
| Maine | $48 |
| Maryland | $53 |
| Massachusetts | $58 |
| Michigan | $51 |
| Minnesota | $51 |
| Mississippi | $55 |
| Missouri | $55 |
| Montana | $55 |
| Nebraska | $52 |
| Nevada | $62 |
| New Hampshire | $54 |
| New Jersey | $63 |
| New Mexico | $56 |
| New York | $63 |
| North Carolina | $47 |
| North Dakota | $48 |
| Ohio | $51 |
| Oklahoma | $51 |
| Oregon | $51 |
| Pennsylvania | $63 |
| Rhode Island | $60 |
| South Carolina | $55 |
| South Dakota | $52 |
| Tennessee | $53 |
| Texas | $56 |
| Utah | $53 |
| Vermont | $52 |
| Virginia | $49 |
| Washington | $62 |
| West Virginia | $57 |
| Wisconsin | $54 |
| Wyoming | $50 |
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.
Retail Business Insurance Cost for BOP Coverage by State
Business owner's policy rates vary widely for retail businesses across states. Monthly premiums range from $83 in North Carolina to $117 in Louisiana, showing how location impacts insurance costs.
| Alabama | $96 |
| Alaska | $91 |
| Arizona | $92 |
| Arkansas | $92 |
| California | $109 |
| Colorado | $97 |
| Connecticut | $108 |
| Delaware | $105 |
| Florida | $105 |
| Georgia | $100 |
| Hawaii | $109 |
| Idaho | $93 |
| Illinois | $109 |
| Indiana | $94 |
| Iowa | $93 |
| Kansas | $96 |
| Kentucky | $91 |
| Louisiana | $117 |
| Maine | $84 |
| Maryland | $94 |
| Massachusetts | $102 |
| Michigan | $95 |
| Minnesota | $92 |
| Mississippi | $100 |
| Missouri | $98 |
| Montana | $98 |
| Nebraska | $90 |
| Nevada | $109 |
| New Hampshire | $96 |
| New Jersey | $113 |
| New Mexico | $98 |
| New York | $114 |
| North Carolina | $83 |
| North Dakota | $86 |
| Ohio | $88 |
| Oklahoma | $96 |
| Oregon | $89 |
| Pennsylvania | $114 |
| Rhode Island | $110 |
| South Carolina | $100 |
| South Dakota | $90 |
| Tennessee | $94 |
| Texas | $98 |
| Utah | $92 |
| Vermont | $92 |
| Virginia | $89 |
| Washington | $112 |
| West Virginia | $100 |
| Wisconsin | $97 |
| Wyoming | $90 |
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 Retail Business Insurance Cost
Insurance companies look at several factors to set your retail business insurance rates. Understanding these costs helps you plan your budget better. Below, we explain how different elements affect your insurance prices.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas prone to natural disasters or with higher crime rates 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 small boutique with $200,000 in annual revenue will pay less than a department store generating $2 million yearly.
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 retail equipment and inventory require higher coverage limits, increasing your premiums. A store with high-end merchandise and sophisticated point-of-sale systems needs more coverage than one with basic equipment and lower-value inventory.
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 Retail Business Insurance
Smart shopping strategies and improved business practices can help lower your retail business insurance costs, and the proven tips below will show you how to reduce premiums both now and in the future.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your retail business needs prevents overpaying for unnecessary coverage. General liability insurance protects against customer injuries and property damage claims. Consider commercial property insurance to protect inventory and equipment, plus workers compensation if you have employees.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Compare quotes from at least three insurance companies to find the best rates. Consider working with an independent agent who can shop multiple carriers for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining general liability with property insurance and other coverage types under one carrier typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means paying more out-of-pocket when filing a claim, but can significantly lower your regular insurance payments.
- 5
Pay annually instead of monthly
Most insurance carriers add processing fees for monthly payment plans. Paying your premium annually eliminates these extra charges and often qualifies you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your business grows. Review your coverage yearly to ensure you are not paying for unnecessary protection. Adjust your policy limits to match your current business size and operations.
Insurance for Retail Business Cost: Bottom Line
Retail business insurance costs range from $35 to $98 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.
Retail Business Insurance Cost: FAQ
Our research team answers the most common questions about retail business insurance costs to help you make informed coverage decisions.
What is the cheapest type of retail business insurance?
Workers' compensation insurance costs $35 monthly, making it the most affordable option. However, most retail businesses need general liability insurance ($66 monthly) to protect against customer injuries and property damage.
How much can I save by bundling my retail business insurance policies?
Bundling business insurance policies through a business owner's policy offers the best value. Combining general liability, property and other coverages can save around 30% on premiums.
What factors make my retail business insurance more expensive?
Factors such as business location, claims history, facility types, workforce size, service offerings, equipment value and credit rating can make your insurance expensive. Workers' comp is the cheapest insurance, but general liability is more essential for retail businesses due to common customer injury risks.
Should I choose a $500 or $2,500 deductible for my retail business insurance?
Higher deductibles lower your monthly premiums but require more cash when filing claims. Choose based on your financial stability and claim frequency expectations.
How much does workers' compensation cost for retail businesses by state?
Monthly workers' compensation costs for retail businesses range from $30 in North Carolina to $40 in New York, with most states falling between $32 and $38.
Is business owner's policy (BOP) worth the extra cost for retail companies?
A business owner's policy costs $98 per month and bundles general liability, commercial property and business interruption coverage into one plan. This combined package offers more value than purchasing policies separately.
How often should I shop around for retail business insurance quotes?
Review your retail business insurance annually during renewal. Compare at least three insurance companies to find better rates, particularly when your business experiences changes or growth.
How We Determined Retail Business Insurance Costs
We collected retail 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 retail 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 retail 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.