Startup business insurance ranges from $11 to $49 monthly, with an average cost of $39 depending on coverage types and location.
Get matched with cheap startup business insurance below.
Updated: November 21, 2025
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Startup business insurance costs range from $136 to $592 annually on average, depending on your coverage type, state and sub-industry.
Your startup insurance premiums depend on your location, claims history, the services you provide and your employee count.
Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable startup business insurance costs.
We found average business insurance costs for startup companies for commonly needed coverage:
| BOP | $43 | $510 |
| General Liability | $29 | $346 |
| Professional Liability (E&O) | $72 | $864 |
| Workers' Comp | $13 | $157 |
*These rates are for small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your business factors and location.
Select your industry and state to get a customized quote.
General liability insurance costs vary by state. Maine startups with two employees pay the lowest rates at $25 per month, below the $29 national average. Louisiana startups pay the highest at $34.
| Alabama | $28 | $340 |
| Alaska | $29 | $344 |
| Arizona | $27 | $322 |
| Arkansas | $28 | $331 |
| California | $32 | $384 |
| Colorado | $29 | $342 |
| Connecticut | $31 | $375 |
| Delaware | $31 | $372 |
| Florida | $31 | $373 |
| Georgia | $29 | $350 |
| Hawaii | $32 | $378 |
| Idaho | $27 | $327 |
| Illinois | $32 | $379 |
| Indiana | $28 | $337 |
| Iowa | $27 | $328 |
| Kansas | $28 | $335 |
| Kentucky | $26 | $316 |
| Louisiana | $34 | $403 |
| Maine | $25 | $299 |
| Maryland | $27 | $329 |
| Massachusetts | $30 | $362 |
| Michigan | $27 | $327 |
| Minnesota | $27 | $323 |
| Mississippi | $29 | $347 |
| Missouri | $29 | $342 |
| Montana | $29 | $344 |
| Nebraska | $27 | $326 |
| Nevada | $32 | $386 |
| New Hampshire | $29 | $343 |
| New Jersey | $33 | $391 |
| New Mexico | $29 | $347 |
| New York | $33 | $401 |
| North Carolina | $25 | $299 |
| North Dakota | $25 | $300 |
| Ohio | $27 | $320 |
| Oklahoma | $28 | $338 |
| Oregon | $27 | $320 |
| Pennsylvania | $33 | $398 |
| Rhode Island | $32 | $379 |
| South Carolina | $30 | $355 |
| South Dakota | $27 | $323 |
| Tennessee | $28 | $337 |
| Texas | $29 | $348 |
| Utah | $27 | $324 |
| Vermont | $28 | $331 |
| Virginia | $26 | $314 |
| Washington | $33 | $392 |
| West Virginia | $30 | $362 |
| Wisconsin | $28 | $339 |
| Wyoming | $27 | $319 |
*These rates reflect startup businesses with two employees. Your rate depends on your location, claims history and services offered.
Workers’ compensation costs differ by state due to varying regulations and claims history. Maine startups with two employees pay $11 monthly, while New York startups pay $15.
| Alabama | $13 |
| Alaska | $12 |
| Arizona | $12 |
| Arkansas | $12 |
| California | $15 |
| Colorado | $13 |
| Connecticut | $14 |
| Delaware | $14 |
| Florida | $14 |
| Georgia | $13 |
| Hawaii | $14 |
| Idaho | $12 |
| Illinois | $14 |
| Indiana | $13 |
| Iowa | $12 |
| Kansas | $13 |
| Kentucky | $12 |
| Louisiana | $15 |
| Maine | $11 |
| Maryland | $12 |
| Massachusetts | $14 |
| Michigan | $12 |
| Minnesota | $12 |
| Mississippi | $13 |
| Missouri | $13 |
| Montana | $13 |
| Nebraska | $12 |
| Nevada | $15 |
| New Hampshire | $13 |
| New Jersey | $15 |
| New Mexico | $13 |
| New York | $15 |
| North Carolina | $11 |
| Oklahoma | $12 |
| Oregon | $12 |
| Pennsylvania | $15 |
| Rhode Island | $14 |
| South Carolina | $13 |
| South Dakota | $12 |
| Tennessee | $13 |
| Texas | $13 |
| Utah | $12 |
| Vermont | $13 |
| Virginia | $12 |
| West Virginia | $14 |
| Wisconsin | $13 |
*These workers' comp rates reflect startup businesses with two employees. Requirements and costs vary because each state sets different rules.
Professional liability insurance costs $72 monthly on average nationwide. Maine startups pay the lowest rates at $63 per month, while Pennsylvania startups pay the highest at $83.
| Alabama | $70 |
| Alaska | $65 |
| Arizona | $69 |
| Arkansas | $68 |
| California | $81 |
| Colorado | $73 |
| Connecticut | $78 |
| Delaware | $76 |
| Florida | $78 |
| Georgia | $73 |
| Hawaii | $74 |
| Idaho | $68 |
| Illinois | $80 |
| Indiana | $70 |
| Iowa | $68 |
| Kansas | $68 |
| Kentucky | $66 |
| Louisiana | $81 |
| Maine | $63 |
| Maryland | $70 |
| Massachusetts | $76 |
| Michigan | $69 |
| Minnesota | $67 |
| Mississippi | $72 |
| Missouri | $73 |
| Montana | $71 |
| Nebraska | $68 |
| Nevada | $82 |
| New Hampshire | $72 |
| New Jersey | $82 |
| New Mexico | $71 |
| New York | $83 |
| North Carolina | $63 |
| North Dakota | $63 |
| Ohio | $67 |
| Oklahoma | $67 |
| Oregon | $66 |
| Pennsylvania | $83 |
| Rhode Island | $79 |
| South Carolina | $74 |
| South Dakota | $68 |
| Tennessee | $70 |
| Texas | $73 |
| Utah | $68 |
| Vermont | $70 |
| Virginia | $67 |
| Washington | $83 |
| West Virginia | $76 |
| Wisconsin | $71 |
| Wyoming | $68 |
*These professional liability rates reflect startups with two employees. Actual costs vary by location, industry and claims history.
Your startup business insurance costs depend on your state. BOP insurance ranges from $36 per month in North Dakota to $49 in Louisiana for the same level of coverage. That $13 monthly gap adds up to more than $150 a year between the lowest and highest-priced states.
North Dakota has the most affordable rates for startups, while Louisiana has the highest. These differences come from local factors, including weather risks, legal costs and state regulations that insurers use when setting prices.
| Alabama | $41 |
| Alaska | $42 |
| Arizona | $40 |
| Arkansas | $41 |
| California | $48 |
| Colorado | $42 |
| Connecticut | $47 |
| Delaware | $46 |
| Florida | $46 |
| Georgia | $43 |
| Hawaii | $47 |
| Idaho | $42 |
| Illinois | $47 |
| Indiana | $43 |
| Iowa | $41 |
| Kansas | $42 |
| Kentucky | $38 |
| Louisiana | $49 |
| Maine | $37 |
| Maryland | $40 |
| Massachusetts | $44 |
| Michigan | $39 |
| Minnesota | $40 |
| Mississippi | $42 |
| Missouri | $42 |
| Montana | $42 |
| Nebraska | $40 |
| Nevada | $47 |
| New Hampshire | $42 |
| New Jersey | $49 |
| New Mexico | $43 |
| New York | $49 |
| North Carolina | $37 |
| North Dakota | $36 |
| Ohio | $40 |
| Oklahoma | $42 |
| Oregon | $41 |
| Pennsylvania | $49 |
| Rhode Island | $47 |
| South Carolina | $43 |
| South Dakota | $40 |
| Tennessee | $41 |
| Texas | $43 |
| Utah | $39 |
| Vermont | $40 |
| Virginia | $38 |
| Washington | $49 |
| West Virginia | $44 |
| Wisconsin | $41 |
| Wyoming | $39 |
*These BOP rates are for startup businesses with two employees in different states. Your rates will vary depending on your business size, location and coverage needs.
Startup business insurance costs vary widely by provider, starting at $30 per month with Simply Business and going up to $53 with NEXT. These price differences reflect how each insurer evaluates risk and the customer segments they target.
| Chubb | $47 | $568 |
| Coverdash | $42 | $503 |
| Hiscox | $34 | $413 |
| NEXT Insurance | $53 | $632 |
| Nationwide | $36 | $431 |
| Progressive Commercial | $39 | $466 |
| Simply Business | $30 | $362 |
| The Hartford | $34 | $408 |
| Thimble | $45 | $535 |
| biBERK | $36 | $438 |
Startup business insurance costs depend on multiple factors insurers review when determining your policy rates:
Operating from startup hubs like San Francisco or New York means higher base rates for all coverage types. Office rent, talent costs and insurance premiums all reflect the elevated business environment of major tech centers compared to secondary markets.
New ventures lack historical data, which can work for or against you in underwriting. Clean records keep premiums reasonable, but early claims involving employment disputes or product issues can increase your rates before you've built a positive track record.
B2B SaaS companies building productivity tools have minimal liability compared to consumer-facing platforms. Startups in regulated spaces like fintech, healthtech or handling payment data encounter substantially more complex insurance requirements right from launch.
Early-stage teams often mix founders, full-time hires and contractors, creating complex coverage needs. As headcount grows from three to thirty, employment practices liability becomes increasingly important alongside standard workers' compensation.
Most startups begin with minimal revenue, keeping basic insurance costs low. Rapid scaling from $100,000 to $2 million in ARR within a year triggers premium increases as your exposure expands across customer base and operations.
Early companies might start with $1 million in general liability to satisfy basic requirements. Enterprise customers and investors often demand $2 million to $5 million in coverage across multiple policy types before signing deals or term sheets.
First-time founders without established business track records pay higher rates. Teams with prior exits, strong advisory boards and formal governance structures secure more favorable terms from insurers.
Reducing startup business insurance costs involves careful planning and strategic shopping. Compare affordable business insurance options and build a stronger, lower-risk profile for your company.
Startups often need general liability for basic operations and office injuries, cyber liability for data breaches and IP issues and directors and officers (D&O) insurance to protect founders and board members from lawsuits.
Add professional liability if you offer services or software and employment practices liability once you begin hiring. Include property coverage for equipment and inventory and consider commercial crime coverage to protect against fraud or embezzlement.
Startup insurance costs vary based on your industry, funding stage and employee count. Tech companies have different risks than consumer product or service-based businesses.
Providers that specialize in startups understand venture capital expectations, equity structures and fast growth better than traditional insurers.
Bundling general liability, cyber insurance and D&O coverage lowers costs by 15% to 23% compared to buying each policy separately. Many insurers also offer startup packages that include employment practices and professional liability at reduced bundle rates.
Choosing higher deductibles between $2,500 and $10,000 reduces premiums by 20% to 32%, which helps early-stage companies preserve cash. Keep D&O deductibles moderate because legal defense for shareholder or employment claims may start before issues are resolved.
Monthly payments add 5% to 11% in processing fees. On an $8,000 policy, that’s an extra $400 to $880 each year. Paying the full amount upfront removes these fees and earns a 6% to 9% discount, allowing you to keep more capital for growth.
Revisit your policy whenever you raise funds, hire more employees, launch new products or reach major revenue milestones. Liability exposure grows as your company scales.
If you’ve added compliance programs, security certifications or governance practices for investors, make sure your coverage reflects these improvements.
On average, startup business insurance runs from $11 to $49 per month, but your actual cost will vary based on where you operate, your claims record and how large your business is. To keep premiums low, get quotes from multiple providers, consider policy bundles and opt for annual payments to reduce costs.
Startup business owners commonly ask about insurance costs. We answered the most frequent questions below:
Workers' compensation costs just $13 monthly but only covers employee injuries. Most startup businesses require general liability coverage ($29 monthly) for protection against customer accidents and property damage lawsuits.
You'll pay more in these states. General liability in California runs $32 monthly (versus $29 national average), and BOP costs $48 monthly (versus $43 average). New York rates are similar: $33 and $49.
Bundling saves 15% to 23% compared to purchasing individual policies. Most insurance companies provide discounts when you combine general liability, commercial property and commercial auto coverage under a single carrier.
Multiple factors increase startup insurance costs: operating in high-risk industries, lacking business history, having fewer employees to spread risk across, working with expensive equipment, poor credit history and choosing inadequate coverage limits.
Higher deductibles reduce monthly premiums, but increase your out-of-pocket costs per claim. Consider your startup's cash reserves and expected claim frequency when deciding.
Workers' comp costs for startups range from $11 monthly in Maine to $15 in New York.
Yes, BOP insurance makes sense for most startups. At $43 per month, you get general liability, commercial property and business interruption coverage bundled together. That's cheaper than buying each policy separately, and you deal with only one insurer instead of three.
Compare quotes annually when your policy renews. Get rates from at least three insurers. You'll often find savings, especially after major changes like hiring employees or adding new services.
Startup founders often struggle to budget for insurance without clear cost benchmarks. We gathered real quotes from insurers across multiple states to show what early-stage businesses actually pay for coverage.
Our sample business reflects common startup characteristics:
We chose these parameters because they represent a typical scaling startup — past the solopreneur stage but still lean on headcount and revenue. This profile helps founders estimate costs before they're deep into renewal negotiations or claims situations.
The insurers included offer nationwide coverage with online quote systems. We focused on carriers actively serving the startup market, since not all commercial insurers price competitively for early-stage businesses.
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
