Determining the cost of business insurance isn’t straightforward, as it varies widely based on several factors. As of November 6, 2025, here’s a breakdown of typical costs:
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General Liability Insurance
This is a common policy for small businesses. Some sources indicate starting costs as low as $17 per month. However, averages range from $30 to $80 per month, depending on the industry. Construction businesses, for example, may face higher premiums than accounting firms.
Business Owners Policy (BOP)
A BOP often combines general liability, property insurance, and business interruption insurance. The average cost is around $57 per month, or $684 annually. Some data suggests a higher average of $249 per month ($2,988 per year) when combined with commercial auto insurance.
Other Insurance Types
- Professional Liability: $1,200-$2,200 per year.
- Cyber Liability: Around $1,200+ per year.
- Workers’ Compensation: Median monthly costs around $80 for new customers.
Factors Affecting Cost
Several factors influence the final cost, including the type of business, its size, location, industry, and coverage limits selected.
Some companies report average costs around $85 per month or $1,019 annually for their small business customers.
Getting a Quote
The best way to determine the actual cost of business insurance is to get quotes from multiple providers. Many online tools can help you compare policies and prices. When requesting a quote, be prepared to provide detailed information about your business, including:
- Industry: The type of work you do significantly impacts risk.
- Number of Employees: More employees generally mean higher premiums, especially for workers’ compensation.
- Annual Revenue: Higher revenue often correlates with increased liability.
- Location: Some locations are riskier than others due to crime rates, natural disasters, or other factors.
- Coverage Needs: The amount of coverage you need will affect your premium. Consider your potential risks and choose appropriate limits;
Tips for Saving on Business Insurance
While business insurance is a necessary expense, there are ways to potentially lower your costs:
- Shop Around: Compare quotes from multiple insurers to find the best rates.
- Bundle Policies: Many insurers offer discounts for bundling multiple policies, such as general liability and property insurance.
- Increase Deductibles: A higher deductible means you’ll pay more out-of-pocket in the event of a claim, but it can lower your premium.
- Implement Safety Measures: Taking steps to reduce risks, such as installing security systems or providing safety training, can demonstrate your commitment to safety and potentially lower your insurance costs.
- Maintain a Good Claims History: A history of few or no claims can help you qualify for lower premiums.
- Review Your Policy Regularly: As your business changes, your insurance needs may also change. Review your policy annually to ensure you have adequate coverage and are not paying for unnecessary coverage.
Beyond the Price Tag: Value and Coverage
Don’t focus solely on the price of business insurance. Consider the value and coverage provided. A cheaper policy with inadequate coverage could end up costing you more in the long run if you face a significant claim. Carefully review the policy terms and conditions to understand what is covered and what is excluded.
Ultimately, the cost of business insurance is an investment in the future of your business. By carefully assessing your risks, shopping around for the best rates, and implementing safety measures, you can find a policy that provides adequate protection at a reasonable price.
