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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), a BOP, or your state. Or estimate your own premium with our cost calculator.
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 — the only price that counts is a real one, and you can get a free Hiscox quote online in about five minutes.
“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 — or, if liability coverage is what you’re pricing, the focused breakdown of the average business liability insurance cost.)
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 business insurance rates in 2026: quick answers
People ask for this number a dozen different ways, so here is the same 2026 answer phrased the way each search asks it (the full benchmark tables live on our average cost of small business insurance page):
- Average business insurance cost: most small businesses pay $45–$85 a month all-in — roughly $540 to $1,000 a year.
- Average cost for insurance for a small business: general liability alone averages $45 a month; add professional liability (E&O) and most small businesses land at $70–$100 a month combined.
- Average business insurance rates by policy: about $45/month for general liability, $59/month for professional liability (E&O), $83/month for a business owner’s policy, and roughly $45 per employee per month for workers’ compensation.
- Average BOP insurance cost: about $83 a month ($50–$180 typical range); Hiscox advertises a BOP from about $42 a month — the full BOP cost breakdown is below.
- Average cost for small business insurance per year: roughly $500–$1,000 depending on the coverage mix, and paying annually instead of monthly often earns a discount.
Every figure above is a market benchmark, not your price — the number that actually applies to your business takes about five minutes to get: run a free Hiscox quote and see your real rate.
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 |
| Massage therapists & personal care | $20–$45 | Hands-on client work; treatment liability |
| Accountants & bookkeepers | $25–$55 | E&O for filing errors and missed deadlines |
| Photographers & creatives | $25–$50 | Gear value and on-location shoots |
| Consultants & freelancers | $25–$60 | Advice risk — E&O is the main cost |
| Marketing & design agencies | $25–$60 | Campaign errors, copyright and E&O exposure |
| Real estate agents | $30–$65 | E&O requirements and transaction volume |
| IT & software developers | $30–$70 | Project size; cyber and E&O exposure |
| Event planners | $30–$70 | Venue requirements and event-day liability |
| 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 |
| Handyman services | $60–$130 | Varied trades and tool-in-hand jobsite 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.
Cost guides by trade: contractors · handymen · cleaners · landscapers · bookkeepers · photographers · personal trainers · consultants · a new business.
Average business insurance cost by state
Full state guides: Florida · Texas · California · New York · Georgia · Illinois · Ohio · Pennsylvania · North Carolina · Michigan · Washington · Arizona · New Jersey · all 50 states.
Insurance is regulated and priced state by state, so the same business can see meaningfully different premiums across a state line. Most states cluster within about 20 percent of the national averages, but litigation-heavy and disaster-prone states (Florida, Louisiana, New York, California) run above them, while much of the rural Midwest and Plains runs below. Illustrative general liability costs for a typical small service business:
| State | Typical GL monthly cost | Vs. $45 national average |
|---|---|---|
| North Dakota, South Dakota, Iowa | $28–$40 | Below average |
| Wisconsin, Nebraska, Idaho | $30–$42 | Below average |
| Ohio, Indiana, Tennessee | $35–$48 | Near average |
| Arizona, Georgia, North Carolina | $38–$52 | Near average |
| Massachusetts, Washington, Colorado | $42–$58 | Slightly above |
| Texas, Illinois | $45–$65 | Above average |
| California, New York | $50–$75 | Above average |
| Florida, Louisiana | $55–$85 | Highest tier |
Want your own state rather than a tier? The full table — general liability and BOP for all 50 states and DC — is in our average business insurance cost by state guide.
State lines change requirements as well as price — contract minimums, workers’-comp thresholds, and licensing rules all vary. Hiscox’s quote form handles this automatically: enter your state and the price you see already reflects it. Get your state’s real price from Hiscox in about five minutes.
Average cost by business size
Headcount moves your total faster than almost anything else, because your first hire usually makes workers’ compensation legally required and every hire after that adds payroll-based premium. Typical all-in monthly totals (liability plus workers’ comp where required) look like this:
| Business size | Typical monthly total | What’s usually in the package |
|---|---|---|
| Solo, no employees | $25–$60 | General liability, plus E&O if you give advice; workers’ comp generally not required |
| 2–5 employees | $150–$350 | Liability coverages plus workers’ comp (roughly $45 per employee per month on average) |
| 6–10 employees | $350–$700 | Above plus higher liability limits; property/BOP if you have premises |
| 11–20 employees | $700–$1,400 | Full package: BOP, workers’ comp, often commercial auto and cyber |
What real businesses actually pay: three worked examples
Averages get more useful when you see them assembled into a real package. Three illustrative examples, priced with the same figures used throughout this page:
- Solo marketing consultant, home office, ~$90k revenue. E&O (from $22.50–$40) plus general liability (~$29) — about $50–$70 a month. No employees, so no workers’ comp; no premises, so no property coverage.
- Cleaning business, 3 employees, ~$220k revenue. General liability at the higher service-trade rate (~$60), workers’ comp for three cleaners (~$135–$160) — about $200–$230 a month, plus a janitorial bond if clients require one.
- General contractor, 2 employees and a work van. General liability (~$120), workers’ comp (~$110), commercial auto (~$150), and tool coverage (~$30) — about $400–$450 a month. Contract minimums, not choice, usually set the limits here.
Your own mix will differ, which is the point: the fastest way to turn these benchmarks into your number is a real quote. Price your exact business with Hiscox in about five minutes.
Real advertised starting prices (not just averages)
Averages describe the middle of the market; advertised starting prices tell you the floor. These are the starting prices Hiscox publishes for its core small-business policies, last checked August 2026. Small, low-risk businesses come closest to these numbers:
| Policy | Hiscox advertised starting price | Typical market 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 |
Hiscox vs the market average: what you actually get for the price
A starting price on its own says very little — the question is what the number buys and how much work it takes to find out whether it applies to you. The table below sets Hiscox, the partner we refer readers to, against the market benchmarks used throughout this page. The right-hand column is our own averaged figure for small-business coverage, not any single named competitor.
| What you’re comparing | HiscoxOur partner | Typical small-business market |
|---|---|---|
| Professional liability (E&O) | from $22.50/mo | $59/mo average |
| General liability | from about $29/mo | $45/mo average |
| Business owner’s policy | from about $42/mo | $83/mo average |
| Time to a real price | about 5 minutes, online, start to finish | often a callback or an agent appointment first |
| What it costs to ask | nothing — no card, no obligation | nothing, but a phone number is usually the price of entry |
| Financial strength | A (Excellent), AM Best | varies by carrier |
| Who it’s built for | small, service-based and solo businesses | mixed — small operators often sit at the edge of the appetite |
| Where it’s available | 49 states plus Washington DC (not Alaska) | varies by carrier and state |
The row that matters most is the fourth one. Every figure above this section is an average, and an average is only ever a sanity check — the number that applies to your business is the one a quote returns. Five minutes is a low price for replacing a range with a figure.
Average BOP insurance cost
The average BOP insurance cost in 2026 is about $83 a month, or roughly $1,000 a year, with most small businesses paying between $50 and $180 a month. A business owner’s policy costs more than general liability alone because it bundles GL with commercial property coverage — but it is usually cheaper than buying those two policies separately, which is why businesses with premises, inventory, or equipment default to it. Hiscox advertises a BOP starting at about $42 a month.
Three things move a BOP premium more than anything else: the value of the property you’re covering (a laptop consultant pays far less than a shop full of inventory), your location’s wind, fire, and crime risk, and your revenue. A home-based business with little equipment often doesn’t need a BOP at all — standalone general liability is the cheaper fit. To see how the $83 BOP average sits alongside every other policy’s average, the average cost of small business insurance page puts them side by side.
Average business liability insurance cost
If liability coverage is the number you’re pricing, here is the short version. The average business liability insurance cost in 2026 is about $45 a month ($540 a year) for general liability, with most small businesses paying between $25 and $70. Professional liability (E&O) — the liability policy for advice and services — averages about $59 a month. Businesses that carry both typically pay $70–$100 a month combined.
| Liability coverage | Average monthly cost | Typical range | Advertised from (Hiscox) |
|---|---|---|---|
| General liability | $45 | $25–$70 | about $29/mo |
| Professional liability (E&O) | $59 | $30–$100 | $22.50/mo |
| Both combined | $85 | $70–$100 | — |
Liability premiums track how risky your work looks to an insurer: hands-on trades pay more for general liability, advice-heavy professions pay more for E&O, and higher limits or past claims raise either one. For the full breakdown — averages by profession, what moves the price, and how to pay less — see our dedicated guide to the average business liability insurance cost in 2026. Pricing one specific policy? We break down the average cost of general liability insurance and the average BOP insurance cost line by line. Or skip the benchmarks and get your real liability price from Hiscox in about five minutes.
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 August 2026 — and widely reported small-business insurance medians, rounded for readability. For background on what each coverage does and when it’s required, the Insurance Information Institute’s small business guide and the U.S. Small Business Administration’s insurance guide are the standard references. The figures here 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.
What are average business insurance rates in 2026?
About $45 a month for general liability, $59 for professional liability (E&O), and $83 for a BOP. Advertised starting prices sit lower — Hiscox lists E&O from $22.50 a month and general liability from about $29.
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 E&O, and $1,000 for a BOP. Paying annually instead of monthly often earns a discount.
Which states have the cheapest business insurance?
Lower-cost, less litigious states — the Dakotas, Iowa, Wisconsin, Nebraska, and much of the rural Midwest — typically see general liability run $28 to $42 a month, below the $45 national average. Florida, Louisiana, New York, and California sit at the top of the range, often $50 to $85 a month.
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.
How much does workers’ compensation cost per employee?
Roughly $45 per employee per month on average, but it is priced per $100 of payroll — commonly $0.70 to $2.25 for office and service work and several times that for construction trades — so payroll and job type set the real number.
Is small business insurance tax deductible?
Generally yes — premiums for ordinary business coverage such as general liability, professional liability, and workers’ comp are typically deductible as a business expense. Confirm your specific situation with a tax professional.
How long does it take to get a business insurance quote?
About five minutes online. Hiscox asks four things: what your business does, which state you’re in, roughly your annual revenue, and how many people work there. Having the revenue figure to hand before you start is what stops most people stalling halfway through.
Is Hiscox cheaper than the average small business insurer?
On advertised starting prices, yes: E&O from $22.50 a month and general liability from about $29 against market averages of $59 and $45. Those are floors for small, low-risk businesses, not everyone’s price — trade, revenue, state and limits all move it, which is why a quote is the only figure that settles it.
How much does business insurance cost for a brand-new business?
Usually the bottom of the range. Premiums are priced off revenue and payroll, and a new business has little of either — general liability commonly runs $25 to $45 a month in year one, or E&O alone from about $22.50. The figure rises as revenue does, not on a fixed schedule.
Do sole proprietors need business insurance?
No law requires it federally, but a sole proprietor has no corporate shield: a liability claim reaches personal assets directly. Most buy general liability for $25 to $45 a month, and many find they need it anyway — clients and landlords routinely ask for a certificate before signing.
How much does $1 million in liability insurance cost?
The $45-a-month general liability average on this page is a $1 million per occurrence / $2 million aggregate policy — that limit is the small-business standard, and it is what most client contracts ask for. Doubling the limit typically costs far less than doubling the premium, because the expensive part of a claim is the first dollar, not the last. Our $1 million liability insurance cost guide prices the $1M/$2M, $2M/$4M and umbrella options by trade, size and state.
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.