How Much Does Small Business Insurance Cost?

Median cost of small business insurance by policy

Insureon publishes median premiums based on 100,000 small-business owners who bought policies through its marketplace (page updated February 6, 2026). Most of these customers are small: many have one to four employees. A median is the middle price, so half of businesses pay more and half pay less.

For general liability, the most common choice is $1 million per occurrence and $2 million aggregate. Commercial auto doesn't have a published median in this data because prices vary widely by vehicles, drivers and how they are used.

Median cost by industry

Risk varies a lot between industries, and so does price. Insureon's 2026 medians by industry:

All figures are monthly medians. A few patterns stand out:

• Desk-based businesses pay the least. Technology and consulting firms have the lowest liability and workers' comp medians.
• Physical work costs more. Construction, installation and landscaping have the highest workers' comp medians because injuries are more common and more severe.
• Food businesses pay more for property. Food and beverage has the highest BOP median, reflecting kitchen equipment, fire risk and customer traffic.

Find costs for your trade on profession pages such as general contractor insurance, cleaning business insurance, landscaper insurance, restaurant insurance and consultant insurance.

What affects your business insurance cost?

Insurers price each business individually. The main factors:

1. Industry and job duties. The riskier the work, the higher the premium. Insurers use class codes to group similar businesses.
2. Location. State laws, lawsuit trends, weather and crime all affect price. Workers' comp rates are set by state.
3. Payroll and number of employees. Workers' comp is priced per $100 of payroll by job class.
4. Revenue. Higher sales usually mean more customers, more work and more exposure.
5. Claims history. Past claims raise rates; a clean record helps. For workers' comp, your experience modification rate (EMR) adjusts the price.
6. Coverage limits. Higher limits cost more.
7. Deductibles. Choosing a higher deductible usually lowers the premium.
8. Property value. For a BOP or property policy, the value of equipment, inventory and buildings matters.
9. Years in business and experience. Established businesses sometimes get better rates.

How limits and deductibles change your price

• Limits are the most the insurer will pay. Going from $1 million to $2 million per occurrence on general liability raises the premium. Get quotes at both limits to see the difference for your business, since the extra cost is sometimes smaller than owners expect.
• Deductibles are what you pay before coverage starts. A higher deductible lowers the premium, but make sure you can afford it if you have a claim.
• Umbrella policies can add liability limits more cheaply than raising each underlying policy, which helps when a contract requires high limits.

Example budgets (illustrative)

These examples combine Insureon's 2026 medians to show how policies add up. They are illustrations, not quotes.

Example: A solo consultant with no employees might start with general liability and professional liability. Using the consulting GL median ($29) and the overall E&O median ($88), that's roughly $117 a month before any discounts.

Example: A landscaping business with three employees might need a BOP and workers' comp. Using the landscaping medians ($94 for a BOP and $169 for workers' comp), that's roughly $263 a month, plus commercial auto for its trucks, which varies widely.

Example: A small restaurant with staff might need a BOP and workers' comp. Using the food and beverage medians ($148 and $106), that's roughly $254 a month, before liquor liability or cyber coverage.

Your real costs depend on your details. Try the business insurance cost calculator for a quick estimate based on these medians.

How to lower your business insurance costs

• Bundle with a BOP. If you need GL and property coverage, a BOP is often cheaper than separate policies.
• Pay annually. Many insurers charge less, or skip installment fees, when you pay in full.
• Raise deductibles where you can afford them.
• Classify employees correctly so you aren't charged a higher workers' comp rate than needed.
• Invest in safety. Training, written procedures and security reduce claims, which lowers renewals.
• Use contracts that define your scope of work and require subcontractors to carry their own insurance.
• Shop at renewal. Compare quotes every year or two, especially after your business changes.
• Don't over-insure or under-insure. Match property limits to real values and liability limits to real contract requirements.

Is business insurance tax-deductible?

Business insurance premiums are generally an ordinary business expense. Ask a tax professional how the rules apply to your situation and business structure.

When to review your coverage and price

Review your insurance at least once a year, and right away when something changes:

• You hire your first employee, which may trigger a workers' comp requirement.
• You buy a vehicle, sign a lease or add a location.
• You add a new service, such as offering advice, installing products or selling online.
• A client contract requires higher limits.
• Your revenue or payroll changes significantly.

Updating your policy keeps your coverage accurate and avoids surprises at audit time.