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Quick answer
The average cost of small business insurance is roughly $45–$85 a month, depending on what you buy. General liability alone averages about $45 a month (Hiscox advertises it from about $29), professional liability about $59 a month, and a bundled business owner’s policy about $83 a month. Your industry, revenue, location, and limits move the number — a quote is the only price that counts.
“How much will this cost me?” is usually the first insurance question, and it is a fair one. The honest answer is that it depends on your business — but you do not have to fly blind. Below are 2026 average costs by policy type and by business type, what actually moves your price, and the fastest way to get a real number. (Just want the benchmark figures at a glance? See our companion page on the average cost of small business insurance.)
Average cost of small business insurance by policy type
These are illustrative averages drawn from carrier-advertised pricing and published industry medians — not quotes. For reference, Hiscox publicly advertises business insurance starting as low as $22.50 a month: professional liability (E&O) from $22.50, general liability from about $29, and a business owner’s policy from about $42.
| Policy type | Average monthly cost | Typical range | Roughly per year |
|---|---|---|---|
| General liability | $45 | $25–$70 | $540 |
| Professional liability (E&O) | $59 | $30–$100 | $710 |
| Business owner’s policy (BOP) | $83 | $50–$180 | $1,000 |
| Workers’ compensation | $45 | $30–$110 | $540 |
| Commercial property | $65 | $40–$150 | $780 |
| Cyber liability | $120 | $80–$250 | $1,440 |
| Commercial auto (per vehicle) | $150 | $90–$250 | $1,800 |
Most very small businesses do not buy everything on this list. A solo consultant might carry only general liability and E&O (about $60–$100 a month combined), while a shop with premises, staff, and a work van will layer on property, workers’ comp, and auto.
Average cost by business type
Risk is priced per trade, so two businesses with identical revenue can pay very different premiums. Typical combined monthly costs for the core liability coverages look like this:
| Business type | Typical monthly cost | What moves the price |
|---|---|---|
| Personal trainers & fitness | $15–$40 | Low property risk; client-injury liability dominates |
| Photographers & creatives | $25–$50 | Gear value and on-location shoots |
| Consultants & freelancers | $25–$60 | Advice risk — E&O is the main cost |
| Real estate agents | $30–$65 | E&O requirements and transaction volume |
| IT & software developers | $30–$70 | Project size; cyber and E&O exposure |
| Retail & e-commerce | $40–$85 | Foot traffic, inventory, and product liability |
| Cleaning services | $45–$95 | Working in client homes and businesses |
| Landscapers & lawn care | $50–$110 | Equipment, crews, and property-damage risk |
| Contractors & trades | $80–$180 | Jobsite injury risk; contract insurance requirements |
| Restaurants & food service | $100–$180 | Premises, fire, staff, and liquor liability |
Where you work matters too, because rates and requirements are set state by state. For a closer look at how these numbers play out for a specific trade in a specific state, see our guides to professional liability insurance for consultants in Vermont and insurance for massage therapists in Hawaii — both walk through the local licensing rules and what coverage typically costs there.
What drives your price
- Industry and services. Higher-risk or advice-based work generally costs more. A roofer and a bookkeeper with the same revenue will never pay the same premium.
- Revenue and payroll. Bigger operations carry more exposure, and workers’ comp is priced directly off payroll.
- Employees. Each hire adds workers’ comp cost and, in most states, makes the coverage legally required.
- Coverage and limits. The standard small-business limit is $1 million per occurrence / $2 million aggregate. Higher limits raise the premium — though doubling your limit typically costs much less than double the price. A higher deductible lowers it.
- Location. Rates vary meaningfully by state, and property risk (wind, fire, crime) moves the price of anything that includes property coverage.
- Claims history. A clean record keeps you in the cheaper tiers; recent claims can raise premiums for three to five years.
How to lower your premium
- Bundle into a BOP. Combining general liability and property in a business owner’s policy is usually cheaper than buying them separately, and multi-policy discounts commonly shave up to 5 percent.
- Raise your deductible. The premium drops when you take on more of the small-claim risk.
- Pay annually. Many insurers charge less for one annual payment than twelve monthly ones.
- Buy only what you need. A home-based solo business rarely needs commercial property; skip coverages that don’t match a real exposure.
- Re-quote yearly. Rates change. The easiest way to see all of these levers is to run a quote and adjust the options.
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, which we last checked in July 2026 — and widely reported small-business insurance medians, rounded for readability. They describe typical small businesses with standard limits — treat them as a planning benchmark, not a price. 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?
Most small businesses pay roughly $45 to $85 a month. A solo business buying a single policy often pays less — Hiscox advertises coverage starting as low as $22.50 a month. Adding professional liability or property coverage puts you higher in the range.
How much is general liability insurance?
General liability averages around $45 a month, with typical prices between $25 and $70. Hiscox advertises general liability starting at about $29 a month. Your price depends on industry, revenue, and limits.
How much does professional liability (E&O) cost?
For many small businesses it runs around $59 a month, typically between $30 and $100. Advice-heavy or higher-revenue work can cost more. A quote is the only accurate figure.
How much does a business owner’s policy (BOP) cost?
Often around $83 a month, since it bundles general liability with commercial property. Businesses with little equipment can pay less; property-heavy businesses pay more.
How much is insurance for an LLC with no employees?
A single-member LLC usually needs only general liability and possibly E&O, which together commonly run $25 to $60 a month. With no employees, workers’ comp is generally not required.
How can I lower my business insurance cost?
Raise your deductible, bundle two or more coverages, pay annually, keep your claims history clean, and only buy what your business needs.
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.