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The average, up front
The average cost of small business insurance in 2026 is $45–$85 a month ($540–$1,020 a year). By policy: general liability averages $45 a month, professional liability (E&O) $59 a month, and a business owner’s policy (BOP) $83 a month. Solo businesses buying a single policy often pay less — Hiscox advertises coverage from $22.50 a month.
Averages are useful for one thing: telling you whether a quote you receive is in the normal range or wildly off. This page collects the 2026 averages in one place — by policy type and by profession — then shows the handful of factors that decide whether your business lands above or below them.
Average monthly cost by policy type
Figures are illustrative averages drawn from carrier-advertised pricing and published industry medians for typical small businesses at standard $1 million per-occurrence limits.
| Policy type | Average monthly cost | Typical range | Advertised from (Hiscox) |
|---|---|---|---|
| General liability | $45 | $25–$70 | ~$29/mo |
| Professional liability (E&O) | $59 | $30–$100 | $22.50/mo |
| Business owner’s policy (BOP) | $83 | $50–$180 | ~$42/mo |
| Workers’ compensation | $45 | $30–$110 | — |
| Commercial property | $65 | $40–$150 | — |
| Cyber liability | $120 | $80–$250 | — |
Average cost by profession
Industry is the single biggest input to your premium, because insurers price the risk of the work itself. Combined monthly costs for the core liability coverages typically look like this:
| Business type | Typical monthly cost |
|---|---|
| Personal trainers, massage & wellness | $15–$40 |
| Photographers & creatives | $25–$50 |
| Consultants & freelancers | $25–$60 |
| Real estate agents | $30–$65 |
| IT & software developers | $30–$70 |
| Retail & e-commerce | $40–$85 |
| Cleaning services | $45–$95 |
| Landscapers & lawn care | $50–$110 |
| Contractors & trades | $80–$180 |
| Restaurants & food service | $100–$180 |
State matters too, since rates and contract requirements are set locally. Two worked examples: our guide to insurance for massage therapists in Hawaii shows a wellness trade landing at the cheap end of the table (from about $29 a month even with resort contract requirements), while professional liability for consultants in Vermont shows how state contract terms can push a $25 solo policy toward a $50–$75 two-policy package.
General liability vs a BOP: which average applies to you?
The most common pricing decision for a first policy is between standalone general liability (average $45 a month) and a business owner’s policy (average $83 a month). The difference is property coverage: a BOP bundles general liability with protection for your gear, inventory, and premises.
- Home-based or service-only business with little equipment? Standalone general liability — often paired with E&O if you give advice — is the cheaper, better fit. Combined, the pair commonly runs $50–$100 a month.
- Own a space, a vehicle full of tools, or inventory? A BOP usually costs meaningfully less than buying liability and property separately, which is why property-carrying businesses default to it.
Not sure which coverages you actually need before you price them? Start with our plain-English general liability vs professional liability vs BOP guide.
What moves you off the average
- Industry. The tables above show the spread: the same $1 million limit costs a bookkeeper a fraction of what it costs a roofer.
- Revenue and payroll. More business means more exposure; workers’ comp is priced directly off payroll.
- Employees. Each hire adds workers’ comp cost, and most states make the coverage mandatory with your first employee.
- Limits and deductible. $1M/$2M is the small-business standard. Higher limits raise the price (though doubling coverage costs much less than double); a higher deductible lowers it.
- State. Rates vary meaningfully by location, and local wind, fire, and crime risk moves anything with property coverage.
- Claims history. A clean record keeps you in the cheaper tiers; recent claims can raise premiums for three to five years.
For the levers that push your premium below average — bundling, paying annually, re-quoting yearly — see the full breakdown in how much does small business insurance cost?
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’s available in 49 states plus Washington DC (not Alaska).
Where these numbers come from
The averages on this page are drawn from carrier-advertised pricing — including the starting prices Hiscox publishes on its own site, last checked July 2026 — and widely reported small-business insurance medians, rounded for readability. Treat them as a planning benchmark: the only number that applies to your business is the one on a real quote.
Frequently asked questions
What is the average cost of small business insurance per month?
Most small businesses pay $45 to $85 a month on average. General liability alone averages about $45, E&O about $59, and a BOP about $83. A solo business buying one policy can pay less — Hiscox advertises coverage from $22.50 a month.
What is the average cost of general liability insurance?
About $45 a month, with typical prices between $25 and $70 at standard $1 million limits. Hiscox advertises general liability from about $29 a month.
Why does a BOP cost more than general liability alone?
Because it bundles general liability with commercial property coverage. At around $83 a month on average it costs more than GL alone, but usually less than buying liability and property separately.
What is the average insurance cost for an LLC with no employees?
Usually $25 to $60 a month for general liability plus, if you give advice, E&O. Without employees, workers’ comp is generally not required, which keeps the total low.
What affects the average price the most?
Industry first, then revenue and payroll, employees, limits and deductible, state, and claims history.
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.