Small Business Insurance Costs
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How much does small business insurance cost?

Small business owners can get a good idea of the cost of business insurance by looking at pricing data from the thousands of businesses that found policies with Insureon.

Estimated small business insurance costs

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' commercial insurance policies purchased through Insureon, the median cost of a general liability policy was $42 per month or $500 per year.

The median cost of a business owner's policy (BOP), which bundles general liability insurance with business property coverage at a discount, was $53 per month or $636 annually.

The table below shows median and average monthly costs for common small business insurance policies. The median better represents what you are likely to pay when talking about insurance costs because it excludes extremely high and low premiums.

Median and average monthly costs of small business insurance

PolicyMedian costAverage cost
General liability
Business owner's policy (BOP)
Professional liability (E&O)
Workers' compensation
Commercial umbrella

See details about small business insurance costs for common policies:

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Insurance costs also depend on your profession

Because general liability insurance covers third-party bodily injury and property damage, professionals who engage with the public typically pay more for this policy. Higher risks mean greater odds that you'll file a claim, which means higher costs for insurance coverage.

For example, general liability insurance costs are generally high for retailers, but low for consultants who work on their own.

To see insurance rates for businesses in your industry, visit our industry-specific cost analyses:

How can you save money on business insurance?

One of the easiest ways to save money on business insurance is by shopping around. You can compare rates from different insurance providers to find a policy that matches your budget.

The amount and type of insurance you buy determines how much you'll pay. You can opt for a higher deductible or lower policy limits to save money on your premiums.

Learn more about where to buy cheap business insurance.

Save a bundle with a business owner's policy (BOP)

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, which includes general liability insurance and commercial property insurance.

Who is the average Insureon customer?

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 understand how your business compares to other businesses, it's helpful to get an idea of who we insure. The majority of our customers have:

  • 1-5 employees
  • Annual revenue ranging from less than $50,000 to more than $200,000
  • Five years or less in business

Many businesses have only one employee

The number of employees can impact your insurance costs, especially for policies like workers' compensation insurance.

The majority of small businesses (62%) in this analysis have only one employee. Another 16% of businesses had two employees.

Distribution of number of employees.

60% of businesses earn less than $100,000 annually

Your revenue also impacts the cost of small business insurance. For example, a small business that earns less than $1 million in annual revenue may be eligible for a cost-saving business owner's policy.

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.

Distribution of small business revenue.

Most companies were in business for 5 years or less

Insurance premiums may be lower for companies that have been in business for many years without making a claim.

The majority of companies included in this analysis (71%) have been in business for five years or less.

Years in business.
Updated: June 28, 2022
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