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Compare in one place: general liability vs professional liability vs BOP. Or price a single coverage — general liability, professional liability (E&O), or a BOP. Or estimate your own premium with our cost calculator.
Quick answer
The average cost for small business insurance is about $45–$85 a month ($540–$1,000 a year) — roughly $45/mo for general liability on its own, $59/mo for professional liability (E&O), and $83/mo for a business owner’s policy. Where you operate shifts that by 30–50 percent in either direction: the cheapest states land near $28–$42 for general liability, the priciest near $55–$85. The only figure that applies to your business is a real one, and you can get a free Hiscox quote online in about five minutes.
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 and New Jersey — 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 illustrative monthly figures for a typical small service business at standard $1 million general liability limits, plus the equivalent business owner’s policy, benchmarked against the $45 and $83 national averages.
| State | General liability / mo | BOP / mo | Vs. national average |
|---|---|---|---|
| Alabama | $30–$42 | $55–$80 | Below average |
| Alaska | $35–$48 | $65–$90 | Near average |
| Arizona | $38–$52 | $70–$95 | Near average |
| Arkansas | $30–$42 | $55–$80 | Below average |
| California | $50–$75 | $92–$140 | High |
| Colorado | $42–$58 | $78–$105 | Above average |
| Connecticut | $38–$52 | $70–$95 | Near average |
| Delaware | $35–$48 | $65–$90 | Near average |
| District of Columbia | $42–$58 | $78–$105 | Above average |
| Florida | $55–$85 | $100–$155 | Highest |
| Georgia | $38–$52 | $70–$95 | Near average |
| Hawaii | $35–$48 | $65–$90 | Near average |
| Idaho | $30–$42 | $55–$80 | Below average |
| Illinois | $45–$65 | $83–$120 | Above average |
| Indiana | $35–$48 | $65–$90 | Near average |
| Iowa | $28–$40 | $50–$75 | Well below average |
| Kansas | $30–$42 | $55–$80 | Below average |
| Kentucky | $30–$42 | $55–$80 | Below average |
| Louisiana | $55–$85 | $100–$155 | Highest |
| Maine | $30–$42 | $55–$80 | Below average |
| Maryland | $38–$52 | $70–$95 | Near average |
| Massachusetts | $42–$58 | $78–$105 | Above average |
| Michigan | $35–$48 | $65–$90 | Near average |
| Minnesota | $35–$48 | $65–$90 | Near average |
| Mississippi | $30–$42 | $55–$80 | Below average |
| Missouri | $35–$48 | $65–$90 | Near average |
| Montana | $30–$42 | $55–$80 | Below average |
| Nebraska | $30–$42 | $55–$80 | Below average |
| Nevada | $38–$52 | $70–$95 | Near average |
| New Hampshire | $30–$42 | $55–$80 | Below average |
| New Jersey | $42–$58 | $78–$105 | Above average |
| New Mexico | $35–$48 | $65–$90 | Near average |
| New York | $50–$75 | $92–$140 | High |
| North Carolina | $38–$52 | $70–$95 | Near average |
| North Dakota | $28–$40 | $50–$75 | Well below average |
| Ohio | $35–$48 | $65–$90 | Near average |
| Oklahoma | $30–$42 | $55–$80 | Below average |
| Oregon | $38–$52 | $70–$95 | Near average |
| Pennsylvania | $35–$48 | $65–$90 | Near average |
| Rhode Island | $35–$48 | $65–$90 | Near average |
| South Carolina | $35–$48 | $65–$90 | Near average |
| South Dakota | $28–$40 | $50–$75 | Well below average |
| Tennessee | $35–$48 | $65–$90 | Near average |
| Texas | $45–$65 | $83–$120 | Above average |
| Utah | $30–$42 | $55–$80 | Below average |
| Vermont | $30–$42 | $55–$80 | Below average |
| Virginia | $35–$48 | $65–$90 | Near average |
| Washington | $42–$58 | $78–$105 | Above average |
| West Virginia | $30–$42 | $55–$80 | Below average |
| Wisconsin | $30–$42 | $55–$80 | Below average |
| Wyoming | $30–$42 | $55–$80 | Below average |
Your state sets the starting point; your trade, revenue, claims history, and limits do the rest. Get your state’s real price from Hiscox in about five minutes
Cheapest and most expensive states for business insurance
Cheapest tier ($28–$42/mo for general liability): Alabama, Arkansas, Idaho, Iowa, Kansas, Kentucky, Maine, Mississippi, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Utah, Vermont, West Virginia, Wisconsin, Wyoming. These are lower-litigation, lower-catastrophe states where claim frequency and severity both sit below the national norm.
Most expensive tier ($45–$85/mo for general liability): California, Florida, Illinois, Louisiana, New York, Texas. Hurricane and flood exposure in Florida and Louisiana, high medical and legal costs in New York and California, and dense commercial activity in Texas and Illinois all push premiums up.
A word of caution before you read too much into the spread: moving is never a sensible way to cut a $20-a-month premium, 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, which is why the BOP column spreads wider than the general liability column.
- 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
Nationally, before any state adjustment:
| Policy | Average monthly | Typical range | Average annual |
|---|---|---|---|
| General liability | $45 | $25–$70 | $540 |
| Professional liability (E&O) | $59 | $30–$100 | $710 |
| Business owner’s policy (BOP) | $83 | $50–$180 | $1,000 |
| Commercial property (standalone) | $67 | $40–$140 | $800 |
| Cyber liability | $45 | $25–$90 | $540 |
| Workers’ compensation | $45 per employee | $0.70–$2.25 per $100 payroll | varies |
Not sure which of these you actually need? Our guide to general liability vs professional liability vs a BOP settles it in a couple of minutes, 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. Illustrative general liability figures for a small business with standard limits:
| Business type | Typical GL monthly | Also commonly needed |
|---|---|---|
| Consultants, coaches, marketers | $25–$40 | Professional liability (E&O) |
| Software developers, IT services | $28–$45 | E&O plus cyber liability |
| Accountants, bookkeepers | $28–$45 | Professional liability (E&O) |
| Photographers, creatives | $30–$50 | Inland marine for gear |
| Real estate agents | $30–$50 | Professional liability (E&O) |
| Retail and e-commerce | $35–$60 | Product liability, BOP |
| Cleaning and janitorial | $40–$70 | Bonding, workers’ comp |
| Landscaping and lawn care | $45–$80 | Equipment, commercial auto |
| Contractors and trades | $55–$120 | Tools, commercial auto, workers’ comp |
Average business insurance cost by business size
- Solo / no employees: commonly $25–$60 a month for one or two policies. Workers’ compensation is generally not required.
- 2–5 employees: commonly $60–$150 a month all-in, once workers’ compensation enters the picture in most states.
- 6–20 employees: commonly $150–$450 a month, driven mostly by payroll-rated workers’ compensation rather than liability.
- 21+ employees: priced individually; payroll, job classifications, and claims history dominate.
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 | National average |
|---|---|---|
| Professional liability (E&O) | from $22.50/mo | $59/mo |
| General liability | from about $29/mo | $45/mo |
| Business owner’s policy (BOP) | from about $42/mo | $83/mo |
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 30 percent apart.
Why Hiscox
Hiscox is built for small, service-based businesses, with an A (Excellent) rating from AM Best and online quotes in minutes. Coverage starts as low as $22.50 a month, and it is available in 49 states plus Washington DC (not Alaska).
Where these numbers come from
The national averages on this page come from carrier-advertised pricing — including the starting prices Hiscox publishes on its own site, last checked in August 2026 — and widely reported small-business insurance medians, rounded for readability. The state figures scale those national averages by each state’s general rate environment; they are consistent planning benchmarks, not filed rates. 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?
The average business insurance cost for a small business is roughly $45 to $85 a month, or about $540 to $1,000 a year. General liability alone averages about $45 a month, professional liability (E&O) about $59, and a business owner’s policy about $83. Your state, industry, revenue, and limits move the number.
What is the average cost for small business insurance per month?
Most small businesses pay $45 to $85 a month. A solo, low-risk business buying a single policy often pays less — Hiscox advertises coverage starting as low as $22.50 a month — while a business that adds property or higher limits pays more.
Which state has the cheapest business insurance?
The rural Plains and Upper Midwest are consistently cheapest. North Dakota, South Dakota, and Iowa typically see general liability run about $28 to $40 a month, roughly 20 to 35 percent below the $45 national average, with Nebraska, Wisconsin, Wyoming, Montana, and Idaho close behind.
Which states have the most expensive business insurance?
Florida and Louisiana sit at the top, commonly $55 to $85 a month for general liability, followed by New York and California at about $50 to $75. Litigation costs, severe-weather exposure, and higher medical and repair costs drive those premiums.
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?
Roughly $500 to $1,000 a year for most small businesses: about $540 for general liability alone, $710 for professional liability, and $1,000 for a business owner’s policy. 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.
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.