Business Insurance Cost & Coverage Guide
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Small Business Insurance Cost
From damaged laptops to stolen gear and surprise legal fees, even a small setback can throw your small business off course. That’s where business insurance comes in — helping you stay covered so you can keep growing with confidence.
This guide breaks down what business insurance costs, what affects your business insurance price, and how Simply Business makes getting coverage easier and more affordable.
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What is Small Business Insurance?
Small business insurance is designed to protect owners from financial losses caused by property damage, legal liability, and employee-related risks. It typically includes essential coverages like general liability, business owner’s policy, and workers’ compensation to ensure a company (of any size) can remain operational after an unexpected lawsuit or disaster.
How Much is Small Business Insurance?
Most small businesses pay around $27-$101 per month for core coverages (listed below). A bundled business owner’s policy (BOP) often falls around $48/month, but your price varies by industry, number of employees, limits/deductibles, location, and claims history.
There’s no one-size-fits-all policy, but here are some of the common coverage options our small business owners typically consider and the median cost:
General Liability
A foundational coverage to help handle costs from third-party accidents, property damage, and bodily injury.
The median cost* is:
$42 per month and $504 per year.
Business Owner’s Policy (BOP)
General liability, property insurance, and more all in one convenient package.
The median cost* is:
$48 per month and $576 per year.
Workers’ Compensation
Coverage to help take care of employees who get injured or sick on the job.
The median cost* is:
$101 per month and $1,212 per year.
Professional Liability
Also known as errors and omissions insurance, this coverage can protect against damages and legal costs for mistakes or negligence claims.
The median cost* is:
$42 per month and $504 per year.
Inland Marine
Also known as tools and equipment Insurance, this coverage can financially protect your tools, equipment, and inventory in transit, onsite, and at your business location.
The median cost‡ is:
$27 per month and $324 per year.
Here’s a snapshot of how much our customers typically pay for business insurance:
Average Monthly Small Business Insurance Costs1
| General liability | $42/month |
| Professional Liability or E&O Insurance | $42/month |
| Business owner’s policy | $48/month |
1Data from Simply Business customers from July 1, 2025 to December 31, 2025.
These numbers are based on actual policies purchased through our site. But getting a great premium isn’t just about the numbers — it’s about working with a partner that understands your business. And because we work with a range of trusted insurers, you’ll see coverage options to match your business, so you can choose a customized package that works for you and your budget.
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What Affects Business Insurance Cost
If you’ve searched online for business insurance, you’ve likely seen a wide range of prices — and no clear reason why. The truth is there isn’t a set price, since the cost depends on several key factors, including:
- Your experience: Have you been in business for years with no claims? That could work in your favor.
- Type of work you do: High-risk jobs (like electrical or roofing) tend to cost more to insure than lower-risk work, such as IT consulting or photography.
- Business size: Solo business owners often pay less than those running busy shops, restaurants, or crews across multiple job sites.
- Location: Rates can vary by city or state based on local laws, industry risk, and foot traffic.
- Number of employees: More employees may mean more exposure to workplace injuries — and higher workers’ comp premiums.
- Coverage type & limits: The more protection you need — from general liability to workers’ comp or inland marine coverage — the more you’ll likely pay.
- Your claims history: If you’ve had previous claims, that may bump up your rate.
How to Save on Business Insurance
- Work smart and stay safe: Whether you’re managing a job site, running a café, or troubleshooting tech, safe practices can help reduce the risk of accidents — and keep premiums down.
- Protect your space: Fire alarms, security measures, and sprinklers can help prevent losses — and may reduce your business insurance price.
- Employee safety training: If you have employees, make sure they’re well-trained in safety, customer service, and equipment use to help avoid costly claims.
- Secure your equipment: From laptops to power tools, protecting your gear from theft or damage can lower Inland Marine insurance costs.
- Learn from past claims: Put steps in place to prevent future mishaps.
- Pay monthly: Some carriers offer monthly payment installments (which sometimes include additional fees), that allow owners to spread the cost out over the year.
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Small Business Insurance Today.
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More Business Insurance FAQs
Most small businesses pay between $27 and $101 per month, depending on their specific needs. Your exact price will depend on your industry, location, and the coverage limits you choose.
Your premium is influenced by the type of work you do, the size of your business, your location, the number of employees you have, and your claims history. High-risk jobs or larger operations typically cost a bit more to insure.
Yes, many of our highly-rated insurers offer monthly payment installments. This allows you to spread the cost over the year and better manage your cash flow.
In most cases, yes. insurance premiums are usually considered a business expense. But always check with your accountant for certain.
A standard business owner’s policy averages $48 per month or $576 per year. This cost-effective bundle combines general liability, property insurance and more to give you broader protection.
Small business insurance is what we do. Whether it’s covering you for accidents and mistakes, meeting workers’ comp requirements, or protecting your tools and equipment, we can help find the coverage you need for your carpenter business.
We provide customized coverage options and quotes from top-rated small business insurers — all in just 10 minutes. More than 1 million small business owners worldwide trust us with their insurance, and we consistently earn high customer ratings and reviews.
Business Insurance Made Better — A one-minute explanation
Learn how we’re making finding business insurance fast, easy, and affordable — all in just 60 seconds.
Hi there, we’re Simply Business, and small business insurance is what we do. We work with top insurers who specialize in small business coverage—no one-size-fits-all solutions here. We’ve worked with thousands of business owners like you, so we have a good idea of what different businesses need. We get it: you do one web search, and the results can be overwhelming, and not in a good way. We can save you from that. We’re ready when you are. It takes just a few minutes online—enter some information about your business, and some pretty cool technology shops for great coverage at competitive prices in just seconds. You choose and purchase the coverage that works for you. Not to worry, we’ve got licensed insurance pros to help you over the phone. Then we zip your Certificate of Insurance and other policy documents straight to your inbox. That’s how easy it is to insure your business with Simply Business.
Our +1 million customers are big fans. And you will be too.
I went online, looked around, and found Simply Business. The process was so seamless. I got my certificate within minutes. It was just phenomenal.
Karen
Owner of Tangaza Bath & Body Studio LLC
With Simply Business I know I can look at different carriers, but also see all my stuff in the same place… a lot of [insurance] providers don’t offer a variety of coverage, all in one place.
Jef
Owner of Bunker83 LLC
It wasn’t overwhelming to figure out what was covered and what wasn’t covered. And the cost was competitive.
Kim
Owner of Room to Breathe Professional Organizing
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*The displayed price for each product is a monthly estimate calculated from the 10th percentile of relevant policies sold by Simply Business (e.g., General Liability data is used for General Liability estimates). This estimate uses data from relevant policy sales between July–December 2025. Final price and payment terms, which may include an initial down payment, are subject to change based on your state, selected insurance provider, and specific business details.
‡ Displayed price is based on the lowest available coverage limit for Equipment and Small Tools policies.
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