Quick answer
Insureon’s small business customers pay a median of $45/mo for general liability on its own, $88/mo for professional liability (E&O), and $83/mo for a business owner’s policy. Where you operate moves that: state medians for general liability run from $40 in Illinois (11% below the national figure) to $59 in Maine (31% above). The only figure that applies to your business is a real quote, whether it comes from an insurer directly, a broker or a local agent.
Average business insurance cost by state
State guides: we now break the biggest states out in full (Florida, Texas, California, New York, Georgia, Illinois, Ohio, Pennsylvania and North Carolina, Michigan, Washington, Arizona, New Jersey, Virginia, Massachusetts, Alabama, Arkansas, Colorado, Connecticut, Delaware and Idaho, Indiana, Kentucky, Louisiana, Maryland, Minnesota, Missouri, Montana, Nevada, Oregon, Utah, Wisconsin) with costs by trade and size and what each state requires. More states are being added.
Insurance is filed, regulated, and priced state by state, so the same business can see meaningfully different premiums a mile across a state line. The table below gives the general liability and workers’ comp medians Insureon publishes for each state, at standard $1 million limits. The BOP ranges start from Insureon’s national BOP median ($83) and adjust it for each state’s general liability median, the way our estimator does.
| State | General liability median / mo | BOP estimate / mo | Workers’ comp median / mo | GL vs. $45 national |
|---|---|---|---|---|
| Alabama | $53 | $59–$118 | $127 | 18% above |
| Alaska | National figure ($45) | $50–$100 | National figure ($54) | No state figure |
| Arizona | $45 | $50–$100 | $59 | Same |
| Arkansas | $42 | $47–$93 | $56 | 7% below |
| California | $42 | $47–$93 | $63 | 7% below |
| Colorado | $54 | $60–$120 | $59 | 20% above |
| Connecticut | $48 | $53–$107 | $78 | 7% above |
| Delaware | $42 | $47–$93 | $52 | 7% below |
| District of Columbia | $46 | $51–$102 | $88 | 2% above |
| Florida | $55 | $61–$122 | $65 | 22% above |
| Georgia | $47 | $52–$104 | $61 | 4% above |
| Hawaii | National figure ($45) | $50–$100 | National figure ($54) | No state figure |
| Idaho | $49 | $54–$109 | $36 | 9% above |
| Illinois | $40 | $44–$89 | $56 | 11% below |
| Indiana | $47 | $52–$104 | $62 | 4% above |
| Iowa | $42 | $47–$93 | National figure ($54) | 7% below |
| Kansas | $44 | $49–$98 | National figure ($54) | 2% below |
| Kentucky | $47 | $52–$104 | $49 | 4% above |
| Louisiana | $49 | $54–$109 | $72 | 9% above |
| Maine | $59 | $66–$131 | National figure ($54) | 31% above |
| Maryland | $42 | $47–$93 | $51 | 7% below |
| Massachusetts | $44 | $49–$98 | $40 | 2% below |
| Michigan | $47 | $52–$104 | $53 | 4% above |
| Minnesota | $41 | $46–$91 | $57 | 9% below |
| Mississippi | $46 | $51–$102 | National figure ($54) | 2% above |
| Missouri | $50 | $56–$111 | $86 | 11% above |
| Montana | $58 | $64–$129 | $77 | 29% above |
| Nebraska | $43 | $48–$96 | $54 | 4% below |
| Nevada | $44 | $49–$98 | $53 | 2% below |
| New Hampshire | $51 | $57–$113 | $67 | 13% above |
| New Jersey | $47 | $52–$104 | $47 | 4% above |
| New Mexico | $46 | $51–$102 | $75 | 2% above |
| New York | $44 | $49–$98 | $43 | 2% below |
| North Carolina | $42 | $47–$93 | $60 | 7% below |
| North Dakota | $49 | $54–$109 | State fund | 9% above |
| Ohio | $42 | $47–$93 | State fund | 7% below |
| Oklahoma | $45 | $50–$100 | $75 | Same |
| Oregon | $42 | $47–$93 | $60 | 7% below |
| Pennsylvania | $53 | $59–$118 | $64 | 18% above |
| Rhode Island | $44 | $49–$98 | National figure ($54) | 2% below |
| South Carolina | $46 | $51–$102 | $84 | 2% above |
| South Dakota | National figure ($45) | $50–$100 | National figure ($54) | No state figure |
| Tennessee | $42 | $47–$93 | National figure ($54) | 7% below |
| Texas | $43 | $48–$96 | $34 | 4% below |
| Utah | $45 | $50–$100 | $44 | Same |
| Vermont | $42 | $47–$93 | $59 | 7% below |
| Virginia | $42 | $47–$93 | $46 | 7% below |
| Washington | National figure ($45) | $50–$100 | State fund | No state figure |
| West Virginia | $44 | $49–$98 | $54 | 2% below |
| Wisconsin | $49 | $54–$109 | $60 | 9% above |
| Wyoming | $42 | $47–$93 | State fund | 7% below |
Estimates from Insureon’s published medians for each state; the BOP column is our estimate for a business of 2 to 5 people. “National figure” means Insureon publishes no figure for that state; “State fund” means workers’ comp must be bought from the state fund. Not quotes. Hiscox writes coverage in 49 states plus Washington DC; Alaska is the exception.
Your state sets the starting point; your trade, revenue, claims history, and limits do the rest. The ways to get a real price for your state, and who each one suits, are compared at the end of this page.
Cheapest and most expensive states for business insurance
Lowest general liability medians: Illinois ($40 a month), Minnesota ($41), then Arkansas, California, Delaware, Iowa, Maryland, North Carolina, Ohio, Oregon, Tennessee, Vermont, Virginia and Wyoming at $42.
Highest general liability medians: Maine ($59 a month), Montana ($58), Florida ($55), Colorado ($54), Alabama and Pennsylvania ($53), New Hampshire ($51) and Missouri ($50). Insureon publishes no figure for Alaska, Hawaii, South Dakota or Washington. The spread is narrower than many people expect, and large states such as California and New York sit below the national median. These medians reflect the mix of small businesses that buy through Insureon in each state, not a filed rate.
A word of caution before you read too much into the spread: moving is never a sensible way to cut a premium by a few dollars a month, and a business that operates across state lines is generally rated where the work happens. Use the table to sanity-check a quote, not to shop for a location.
Why your state changes the price
- Litigation climate. States with more frequent and larger liability verdicts price general liability higher: this is the single biggest driver of the spread.
- Weather and catastrophe exposure. Hurricanes, hail, wildfire, and flood risk load the property half of a BOP.
- Medical and repair costs. Bodily-injury and property-damage claims are settled at local prices.
- Regulation and required limits. Filing rules, rate approval, and minimum limits for licensed trades all vary by state.
- Workers’ compensation rules. The employee count that triggers mandatory coverage differs by state, which changes your total insurance bill even when liability pricing does not move.
Average business insurance cost by policy type
Insureon’s national medians for its small business customers, before any state adjustment:
| Policy | Median monthly | How prices spread | Median annual |
|---|---|---|---|
| General liability | $45 | 22% pay under $30, 63% under $60 | $542 |
| Professional liability (E&O) | $88 | 43% pay under $75, 71% under $150 | $1,051 |
| Business owner’s policy (BOP) | $83 | 25% pay under $50, 58% under $100 | $996 |
| Cyber liability | $129 | 41% pay under $100 | $1,552 |
| Workers’ compensation | $54 | 47% pay under $50, 71% under $100 | $643 |
Insureon’s published national medians for its small business customers at standard limits. Workers’ comp is priced on payroll. Not quotes.
Not sure which of these you actually need? Our guide to general liability vs professional liability vs a BOP compares what each one covers and who needs it first, and the deeper cost breakdowns live in average cost of general liability insurance and average BOP insurance cost.
Average business insurance cost by trade
Your industry tells the insurer how likely a claim is and how expensive it would be. The ranges below start from Insureon’s published general liability median for each type of business, for 2 to 5 people, before any state adjustment:
| Business type | Estimated GL monthly | Also commonly needed |
|---|---|---|
| Consultant | $21–$43 | Professional liability (E&O) |
| Marketing consultant | $20–$40 | Professional liability (E&O) |
| IT or software developer | $25–$49 | E&O plus cyber liability |
| Accountant or bookkeeper | $20–$40 | Professional liability (E&O) |
| Photographer or videographer | $19–$39 | Inland marine for gear |
| Real estate agent | $22–$44 | Professional liability (E&O) |
| Retail shop | $28–$56 | Product liability, BOP |
| Online store (e-commerce) | $28–$56 | Product liability, BOP |
| Cleaning or janitorial | $32–$64 | Bonding, workers’ comp |
| Landscaping or lawn care | $34–$68 | Equipment, commercial auto |
| General contractor | $108–$216 | Tools, commercial auto, workers’ comp |
Estimates from Insureon’s published medians for each business type, 2 to 5 people, national figures. Hands-on trades pay more for general liability; advice-heavy professions pay more for E&O. Not quotes.
Want one trade in detail? See the full cost guides for photographers (with a California photographer guide), personal trainers (with a California trainer guide) and hair salons and barbers online stores and massage therapists.
Average business insurance cost by business size
- Solo / no employees: about $30–$45 a month for general liability alone on Insureon’s national figures, for a one-person business under $100k. Workers’ compensation is generally not required.
- 2–5 people: about $80–$160 a month for general liability plus workers’ compensation, which most states require once you hire.
- 6–20 people: the upper half of that band ($99–$160) at least, and often more. No source publishes prices by size, and payroll-rated workers’ compensation grows with every hire.
- 21+ employees: priced individually; payroll, job classifications, and claims history dominate.
What business insurance costs per year
Most people ask the question as a yearly bill, so here are the same medians added up. A solo business with only general liability sits near $540 a year; adding professional liability roughly triples that; a business with staff adds workers’ compensation on top.
| Policy | Median per month | About per year |
|---|---|---|
| General liability | $45 | $542 |
| Workers’ compensation | $54 | $643 |
| Professional liability (E&O) | $88 | $1,051 |
| Business owner’s policy (BOP) | $83 | about $1,000 |
Insureon medians for small business customers, multiplied by twelve. Paying annually usually earns a small discount.
For the same figures laid out as a monthly bill by trade, with three typical totals, see how much business insurance costs per month. For the cheapest policy bundle for a business with a shop or equipment, see the average BOP cost guide.
Real advertised starting prices
Averages describe the middle of the market. Advertised starting prices tell you the floor: the number a small, low-risk business in a cheaper state can realistically land near. These are the prices Hiscox publishes for its core small-business policies, last checked August 2026:
| Policy | Hiscox advertised starting price | Insureon median |
|---|---|---|
| Professional liability (E&O) | from $22.50/mo | $88/mo |
| General liability | from about $29/mo | $45/mo |
| Business owner’s policy (BOP) | from about $42/mo | $83/mo |
Starting prices as advertised by Hiscox, checked August 2026. Your actual price is set by the insurer during quoting and may be higher.
How to lower your business insurance cost
- Bundle into a BOP. General liability plus property in one policy is usually cheaper than the two bought separately.
- Raise your deductible. Moving from $500 to $1,000 typically trims the premium, as long as you can absorb the difference.
- Pay annually. Most insurers discount the annual payment against twelve monthly ones.
- Right-size your limits. Buy what your contracts and your state actually require, not the largest number on the page.
- Keep the claims history clean. Small claims you could self-fund often cost more in future premium than they pay out.
- Compare more than one quote. Appetite varies by carrier; the same risk can be priced very differently.
Where these numbers come from
The national and state medians on this page are the ones Insureon publishes from the policies its small business customers buy, most of whom have fewer than 5 employees and under $100k in revenue (full list of sources). The BOP and trade ranges start from those medians and adjust them the way our estimator does; they are planning benchmarks, not filed rates. The starting prices are the ones Hiscox publishes on its own site, last checked in August 2026. For background on what each coverage does and when it is required, the Insurance Information Institute’s small business guide and the U.S. Small Business Administration’s insurance guide are the standard references.
Frequently asked questions
What is the average business insurance cost?
Insureon’s small business customers pay a median of $45 a month for general liability, $88 for professional liability (E&O) and $83 for a business owner’s policy. Your state, industry, revenue, and limits move the number.
What is the average cost for small business insurance per month?
Insureon’s small business customers pay a median of $45 a month for general liability, the usual first policy. A solo, low-risk business buying a single policy often pays less, while a business that adds property or higher limits pays more.
Which state has the cheapest business insurance?
In Insureon’s published figures, Illinois has the lowest general liability median at $40 a month, 11% below the $45 national figure, followed by Minnesota ($41) and twelve states at $42, including California, Ohio, North Carolina and Virginia.
Which states have the most expensive business insurance?
Maine has the highest published general liability median at $59 a month, followed by Montana ($58), Florida ($55), Colorado ($54), and Alabama and Pennsylvania ($53). Litigation costs, severe-weather exposure, and local medical and repair costs all feed into state prices.
Why does business insurance cost vary by state?
Insurance is regulated and priced state by state. Rates reflect local litigation and claim severity, weather and catastrophe exposure, medical and repair costs, state filing rules, and required minimum limits, so the same business can pay noticeably different premiums across a state line.
How much does business insurance cost per year?
At Insureon’s published medians, about $542 a year for general liability, $643 for workers’ comp and $1,051 for professional liability (E&O). Paying annually rather than monthly usually earns a discount.
Is a BOP cheaper than buying general liability and property separately?
Usually yes. A business owner’s policy bundles general liability with commercial property, and the bundled price is typically lower than the two policies bought separately. That is why businesses with premises, inventory, or equipment default to a BOP.
How can I lower my business insurance cost?
Raise your deductible, bundle coverages into a BOP, pay annually instead of monthly, keep your claims history clean, right-size your limits to what your contracts actually require, and compare more than one quote.
Get a real price
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Disclaimer: Informational only, not insurance advice or a substitute for a licensed agent. Coverage descriptions are summaries; policy terms govern. Availability and pricing vary by state and business; all averages and ranges shown are illustrative benchmarks, not quotes or offers. Hiscox is available in 49 states and DC, not Alaska.