Small business owners can get a good idea of the average cost of business insurance by looking at pricing data from the thousands of businesses that found policies with Insureon.
The first policy that most business owners need – and also the least expensive one – is general liability insurance. In an analysis of 28,000 small business owners who purchased commercial insurance through Insureon, the median cost of general liability insurance was $42 per month or $500 per year. The median cost of a business owner's policy, which bundles general liability with property insurance at a discount, was $53 per month or $636 annually.
The table below shows median and average premiums for common policies. The median better represents what you might pay when talking about insurance costs because it excludes extremely high and low premiums.
See details about small business insurance costs for common policies:
Because general liability insurance covers third-party property damage, professionals who are responsible for client or customer property typically pay more for this policy. The higher the chance of you making a claim, the more you can expect to pay for coverage.
To see insurance costs for businesses in your industry, visit our industry-specific cost analyses:
One of the easiest ways to save money on business insurance is by shopping around. You can compare rates from different companies to find a policy that matches your budget.
There are other ways to save, too. Sometimes you can bundle policies for a discount. The most common bundle is a business owner's policy (BOP), which includes general liability insurance and commercial property insurance.
Also, you could opt for a higher deductible or lower limits to save money on your premiums.
Read more about how to save money on business insurance.
Insureon is a resource for a variety of small business owners. We have helped everyone from IT / tech businesses to house cleaners, management consultants, and restaurants with their small business insurance needs.
To know how your business compares to other businesses, it's helpful to get an idea of who we insure. The majority of our customers have:
The majority of small businesses (62%) in this analysis have only one employee. Another 16% of businesses had two employees.
The median revenue of the small businesses included in this analysis is $60,000. The majority of clients (around 60%) have less than $100,000 in annual revenue.
The majority of companies included in this analysis (71%) have been in business for five years or less.