How much does small business insurance cost?
What should a small business expect to pay to be covered in 2026? Here are the real averages by coverage type — and what moves them.
Business insurance cost varies a lot by industry and risk, but the typical small business pays less than many owners expect — and the right bundle saves money. Here's what the common coverages run in 2026.
General Liability (GL)
GL is the foundation for most businesses and averages around $40–$65/month, with many low-risk businesses on the lower end. It covers third-party bodily injury, property damage and related claims.
Business Owner's Policy (BOP)
A BOP bundles general liability with commercial property and typically averages around $80–$140/month — usually cheaper than buying those coverages separately. It's the most common starting point for small businesses with a location, equipment or inventory.
Workers' compensation
Required in most states once you have employees, workers' comp is priced per $100 of payroll and varies widely by occupation and state — a desk-based team costs far less than a construction crew.
What drives your price
- Industry and risk class.
- Revenue and payroll.
- Number of employees.
- Location and claims history.
- Coverage limits and deductibles.
How to keep costs down
Bundle with a BOP, choose limits that match your real exposure, maintain a clean claims history, and have a commercial specialist compare carriers. Because pricing is so industry-specific, a tailored quote beats any generic estimate.
Frequently asked questions
For most small businesses, roughly $40–$65 per month on average in 2026, though low-risk businesses often pay less and higher-risk trades pay more. Your exact rate depends on industry, revenue and claims history.
Usually yes. A Business Owner's Policy bundles general liability and commercial property at a lower combined cost than buying them individually — which is why it's a popular starting point.
In most states, yes — once you have employees. Requirements and rates vary by state and occupation; a commercial specialist can confirm what applies to you.
Ready to compare business insurance options?
Get a free quote in about two minutes — no cost, no obligation.
Get my free business insurance quote