Minnesota prices general liability about 9 percent below the national average and workers’ compensation about 6 percent above it. That makes it a slightly cheaper state for a business with no staff and a slightly dearer one for a business that hires, so the payroll side is where Minnesota costs more. Below are the 2026 numbers by coverage, trade and headcount, what shapes them, and the levers that move a Minnesota premium. For the 50-state picture, see average business insurance cost by state.
Average business insurance cost in Minnesota by coverage
The table shows what a Minnesota business of two to five people in a middling risk class pays for the three policies most small businesses carry. Professional liability, also sold as errors and omissions, responds when a client says your work cost them money. A business owner’s policy adds property cover on your own equipment.
| Coverage | Typical monthly | Typical annual | What it covers |
|---|---|---|---|
| General liability ($1M per occurrence) | $27–$55/mo | $324–$660/yr | Third-party injury and property damage; the policy a client or landlord asks for by name. |
| Professional liability (E&O) | $68–$137/mo | $816–$1,644/yr | Claims that your advice or work cost a client money, legal defence included. |
| Business owner’s policy (BOP) | $46–$91/mo | $552–$1,092/yr | General liability plus commercial property, usually with business-interruption cover. |
| Hiscox advertised starting price | from $22.50/mo | from $270/yr | E&O from $22.50, general liability from about $29, a BOP from about $42. |
Estimates from Insureon’s published medians for Minnesota, for a business of two to five people at standard $1M/$2M limits. Not quotes; your insurer prices your specific business. Hiscox writes coverage in 49 states plus Washington DC (not Alaska).
See these costs for your own business size, revenue and state
Most Minnesota businesses begin with general liability because somebody else demands it: a Minneapolis landlord who wants a certificate before handing over keys, or a St. Paul property manager who will not let a cleaning crew into a building without one. A business owner’s policy earns its higher price once you own equipment, stock or a lease, because it bundles property cover for less than two separate policies. Our guide to general liability vs professional liability vs BOP explains which to buy first.
Minnesota business insurance cost by trade
Your trade moves the premium more than your address: a consultant who never leaves the laptop is a cheaper risk than a contractor, and insurers price that gap with a risk class. Twelve common trades in Minnesota, two to five people, $1M/$2M limits.
| Trade | General liability | Business owner’s policy |
|---|---|---|
| Consultant | $19–$39/mo | $33–$67/mo |
| IT or software developer | $22–$45/mo | $25–$50/mo |
| Accountant or bookkeeper | $18–$36/mo | $33–$66/mo |
| Photographer or videographer | $18–$35/mo | $26–$52/mo |
| Real estate agent | $20–$40/mo | $32–$64/mo |
| Online store | $26–$51/mo | $52–$104/mo |
| Personal trainer or fitness | $18–$35/mo | $32–$65/mo |
| Cleaning or janitorial | $29–$58/mo | $42–$83/mo |
| Landscaping or lawn care | $31–$62/mo | $52–$103/mo |
| Auto repair shop | $33–$66/mo | $82–$164/mo |
| Restaurant or café | $86–$171/mo | $138–$276/mo |
| General contractor | $98–$197/mo | $46–$91/mo |
Estimates from Insureon’s published medians for each business type for Minnesota, for two to five people at the standard $1M/$2M limits. Not quotes.
General contracting runs highest on this list because the work itself carries more injury and property-damage exposure than desk-based trades. Cleaning crews have their own guide: cleaning business insurance cost.
Cost by business size
Headcount matters too: every hire is another pair of hands that can drop a client’s server or leave a wet floor unsigned, and Insureon says more staff and more revenue generally mean higher premiums. It publishes no prices by headcount, so the table below only shows where in the Minnesota range a business of each size is likely to sit.
| Business size | General liability |
|---|---|
| Just me | $27–$41/mo |
| 2 to 5 people | $27–$55/mo |
| 6 or more people | $41–$55/mo |
Estimates from Insureon’s published medians for Minnesota, not quotes. No source publishes prices by headcount, so we show the lower half of the range for a one-person business under $100k in revenue, the whole range for two to five people, and the upper half for six or more. Larger businesses often pay more than this, especially for workers’ comp.
Business insurance cost in Minneapolis, St. Paul, Rochester, Duluth and Bloomington
Insurers price general liability and a BOP by state, not by city, so a Minneapolis business and a St. Paul business pay the same $27–$55 a month for the same trade, size and limits. Minnesota’s statewide rate holds across its largest cities and towns.
| City | General liability | Local licensing office |
|---|---|---|
| Minneapolis | $27–$55/mo | Minneapolis, where a city business licence applies |
| St. Paul | $27–$55/mo | St. Paul, where a business licence applies |
| Rochester | $27–$55/mo | Rochester, where a business licence applies |
| Duluth | $27–$55/mo | Duluth, where a business licence applies |
| Bloomington | $27–$55/mo | Bloomington, where a business licence applies |
Same statewide Minnesota rate applies in every city; Minnesota has no city-level rating for general liability. Minnesota has no single statewide general business licence, so any licence a city asks for is set locally; the offices shown are where to check.
Minneapolis and St. Paul, with the suburbs of the Twin Cities metro around them, hold most of the state’s small businesses, but their rate does not run higher than the rest of the state: Minnesota insurers price the whole state as one block.
Why Minnesota costs what it does
Minnesota’s general liability median is about 9 percent below the national one and its workers’ comp median is about 6 percent above it, so the state is a little cheaper for liability and a little dearer for payroll cover.
- Lower general liability. Insureon’s Minnesota small business customers pay a median of $41 a month for general liability against $45 nationally, so a business owner’s policy and professional liability price a little under the national picture too.
- Higher workers’ comp. The Minnesota workers’ comp median in Insureon’s data is $57 a month against $54 nationally, so a business with employees pays somewhat more here than in the typical state.
What Minnesota requires
The Minnesota Department of Commerce regulates insurers. Workers’ compensation is generally required as soon as you have an employee, overseen by the Minnesota Department of Labor and Industry, and bought separately from the policies on this page. Confirm the exceptions that apply to your kind of work with the Department of Labor and Industry.
Construction trades are the other rule to know: Minnesota licenses residential building contractors and many other construction trades, including plumbing and electrical, through its Department of Labor and Industry. Check what the state, your city and your county ask for, and what your clients ask for in insurance, before you start work.
How to lower your premium in Minnesota
Together these can move a Minnesota premium by a third or more.
- Get the classification right. A bookkeeper rated as a general consultant pays for a risk they do not carry, so describe the work precisely.
- Quote real revenue. Premiums scale with revenue, and quoting projections means overpaying until renewal.
- Buy the limits the contract asks for, not more. $1M/$2M satisfies nearly every Minnesota lease and vendor agreement; see $1 million liability insurance cost for what higher limits add.
- Bundle into a BOP. If you need property cover at all, a BOP is almost always cheaper than two separate policies.
- Stay claims-free and pay annually. Carriers price a clean loss history lower at renewal, and most charge less for one annual payment than for twelve.
Where these numbers come from
The figures at the top of this page and in the main cost table come from the same data as our cost estimator, so the two always agree. The starting point is the median premium that Insureon, an online insurance agency, publishes for its small business customers (see its Minnesota page). We adjust it for the state using Insureon’s state medians, and show the band that Insureon’s own price distribution says most businesses fall in. Every figure is an estimate, not a quote. The full method and source list is on the estimator page.
Frequently asked questions
How much is business insurance in Minnesota per month?
A Minnesota business of two to five people typically pays about $27–$55 a month for general liability, $68–$137 for professional liability and $46–$91 for a business owner’s policy.
Is business insurance more expensive in Minnesota than the national average?
Slightly less on liability and slightly more on payroll. Insureon’s Minnesota general liability median is $41 a month against $45 nationally, about 9 percent less, and its workers’ comp median is $57 a month against $54 nationally, about 6 percent more.
Do I need workers’ compensation in Minnesota?
Usually, as soon as you have an employee. Minnesota sets the rule in its workers’ compensation law, and the cover is bought separately from the policies on this page.
How much does $1 million liability insurance cost in Minnesota?
A $1 million per occurrence, $2 million aggregate general liability policy costs a typical Minnesota business of two to five people about $27–$55 a month, or $324–$660 a year. That is the limit most landlords and contracts ask for; a one-person consultancy or IT shop pays closer to $22–$45 a month.
What is the cheapest business insurance in Minnesota?
General liability on its own is the cheapest policy for most Minnesota businesses, and a one-person consultancy or IT shop is the cheapest profile to insure.
How much is business insurance in Minneapolis or St. Paul?
The same as anywhere else in Minnesota: about $27–$55 a month for general liability for a two to five person business, because Minnesota insurers rate by state, not by city. Minneapolis, St. Paul, Rochester, Duluth and Bloomington all fall under the same statewide range.
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No. This site publishes cost guides and earns a commission if you get a quote through a partner link. We are not an insurer or a broker, we do not sell your details, and a quote costs you nothing and commits you to nothing.
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Disclaimer: Informational only, not insurance advice or a substitute for a licensed agent. Licensing and regulatory details change; confirm current requirements with the bodies named above. Coverage descriptions are summaries; policy terms govern. Availability and pricing vary by state and business, and prices are illustrative. Hiscox is available in 49 states and DC, not Alaska.