How Much Does Small Business Insurance Cost?
Updated for 2026 — national average costs with state-by-state breakdowns
What Does Small Business Insurance Include?
Small business insurance packages typically include general liability, professional liability, property coverage, and workers compensation. A Business Owner's Policy (BOP) bundles common coverages at a discount.
The national average cost for small business insurance is $175 per month. Most homeowners pay between $30 and $500, though costs can vary significantly based on your location, the scope of work, and other factors outlined below.
What Affects the Price?
Coverage
General liability only: $30-$100/month. BOP (GL + property): $50-$200/month. BOP + workers comp: $150-$400/month. Full package: $200-$600/month
Industry
Office/consulting: $30-$100/month. Retail: $50-$200/month. Restaurant: $200-$500/month. Construction: $300-$1,000+/month
Key Cost Factors
- ✓Business type
- ✓Revenue
- ✓Number of employees
- ✓Coverage limits
- ✓Industry risk level
💡 Tips to Save Money
- 1.A BOP (Business Owner's Policy) bundles GL + property at 15-30% savings
- 2.Pay annually instead of monthly to save 5-10%
- 3.Higher deductibles reduce premiums
- 4.Shop multiple carriers — rates vary 30-50% for the same coverage
📈 Small Business Insurance Cost Trends (2020–2024)
Prices have increased +17.4% over the last 5 years
| Year | National Avg | YoY Change |
|---|---|---|
| 2020 | $149 | — |
| 2021 | $155 | +4.0% |
| 2022 | $165 | +6.5% |
| 2023 | $170 | +3.0% |
| 2024 | $175 | +2.9% |
Based on national averages adjusted for annual inflation. Actual costs vary by location and project scope.
Small Business Insurance Cost by State
Costs vary significantly by state due to labor rates, cost of living, and local market conditions. Click any state for a detailed breakdown.
| State | Low | Average | High |
|---|---|---|---|
| Alabama | $25 | $144 | $410 |
| Alaska | $38 | $224 | $640 |
| Arizona | $29 | $166 | $475 |
| Arkansas | $24 | $140 | $400 |
| California | $41 | $236 | $675 |
| Colorado | $32 | $189 | $540 |
| Connecticut | $37 | $214 | $610 |
| Delaware | $32 | $184 | $525 |
| Florida | $29 | $172 | $490 |
| Georgia | $27 | $158 | $450 |
| Hawaii | $43 | $249 | $710 |
| Idaho | $28 | $161 | $460 |
| Illinois | $32 | $184 | $525 |
| Indiana | $26 | $154 | $440 |
| Iowa | $26 | $151 | $430 |
| Kansas | $26 | $149 | $425 |
| Kentucky | $25 | $147 | $420 |
| Louisiana | $26 | $152 | $435 |
| Maine | $31 | $179 | $510 |
| Maryland | $35 | $201 | $575 |
| Massachusetts | $39 | $228 | $650 |
| Michigan | $28 | $161 | $460 |
| Minnesota | $31 | $179 | $510 |
| Mississippi | $23 | $137 | $390 |
| Missouri | $26 | $152 | $435 |
| Montana | $29 | $166 | $475 |
| Nebraska | $26 | $154 | $440 |
| Nevada | $31 | $179 | $510 |
| New Hampshire | $34 | $196 | $560 |
| New Jersey | $38 | $219 | $625 |
| New Mexico | $27 | $158 | $450 |
| New York | $40 | $231 | $660 |
| North Carolina | $27 | $158 | $450 |
| North Dakota | $27 | $158 | $450 |
| Ohio | $27 | $158 | $450 |
| Oklahoma | $25 | $145 | $415 |
| Oregon | $33 | $193 | $550 |
| Pennsylvania | $31 | $179 | $510 |
| Rhode Island | $35 | $201 | $575 |
| South Carolina | $26 | $152 | $435 |
| South Dakota | $26 | $149 | $425 |
| Tennessee | $26 | $151 | $430 |
| Texas | $28 | $163 | $465 |
| Utah | $29 | $166 | $475 |
| Vermont | $32 | $189 | $540 |
| Virginia | $32 | $184 | $525 |
| Washington | $35 | $201 | $575 |
| West Virginia | $24 | $140 | $400 |
| Wisconsin | $28 | $165 | $470 |
| Wyoming | $28 | $161 | $460 |
Frequently Asked Questions
What insurance does a small business need?
At minimum: general liability ($30-$100/mo) and property insurance if you have a physical location. Add professional liability for service businesses, workers comp if you have employees, and commercial auto if you use vehicles for business.
🏙️ Small Business Insurance Cost by City
Compare small business insurance costs in the most popular US cities:
View all 219 cities →
Related Cost Guides
💬 What Did You Pay?
Real costs reported by homeowners for Small Business Insurance
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