How much does business insurance cost?
Written byDia Adams
Reviewed by Robin Saks Frankel
Summary
- Business insurance can cost less than $100 a month for one basic policy. Your total can be higher if you need coverage for employees, vehicles, property, professional mistakes, or customer data.
- Don’t get too attached to one published average. Some figures reflect a single policy, while others reflect a bundled business owner’s policy, or BOP, or multiple policies.
- A BOP costs about $80 to $127 per month in published insurer and marketplace data. That can be a useful starting point, but it is not a universal price for small business insurance.
- To estimate your business insurance cost, start with the policies your business needs, then compare quotes with the same coverage limits, deductibles, and policy details.
How much does business insurance cost?
Business insurance can cost less than $100 a month for one basic policy. But business insurance is a catchall term, not one product with one price.
Different policies protect against different problems. Here are some of the most commonly needed types of business insurance:
- General liability insurance can help if a customer is injured or claims you damaged their property.
- Professional liability insurance can help if a client says your work, advice, or service caused them a financial loss.
- Workers’ compensation can help cover job-related injuries for employees.
- Commercial auto insurance covers business-owned vehicles, while cyber liability insurance can help with costs after certain data breaches or cyber incidents.
That’s why the price can vary so much. A home-based consultant without employees may only need general liability and professional liability coverage. A restaurant may need a BOP for liability and property coverage, plus workers’ compensation after it hires staff. A contractor with a crew and work truck may need general liability, workers’ compensation, and commercial auto insurance.
In general, a small business may pay about $25 to $100 per month for one type of insurance policy and about $50 to $250 per month in total. A BOP, or business owner’s policy, often costs about $50 to $150 per month. It typically bundles general liability, commercial property, and business income coverage for eligible businesses.
There is no single average cost of business insurance, though. Some published figures are for one basic policy. Others are for a BOP. Still others reflect several policies purchased together by businesses with employees, vehicles, property, or higher-risk operations.
Provider or marketplace | Published cost | What the number measures |
NEXT | Starts at $19 per month | Advertised starting price for selected low-risk businesses; it is not an average or a complete insurance package |
Thimble | $40 per month | Average monthly business insurance cost among Thimble customers in 2021 |
Simply Business | $42 per month | Median monthly cost of general liability insurance purchased by customers from July through December 2025 |
Insureon | $45 per month | Median monthly cost of general liability insurance among 100,000 customer policies |
Simply Business | $48 per month | Median monthly cost of a BOP purchased by customers from July through December 2025 |
Thimble | $60 per month | Median monthly BOP cost in Thimble’s published customer data |
Insureon | $83 per month | Median monthly BOP cost among Insureon customers |
Progressive Commercial | $80 median; $127 average per month | Monthly BOP cost for new Progressive Commercial customers in 2025 |
The Hartford | $141 per month | Average monthly BOP cost among The Hartford business customers |
The numbers are all over the place because they aren’t measuring the same purchase. A $42 general liability policy is not comparable with a $141 BOP. To estimate your own business insurance cost, identify the policies you need first. Then compare quotes with the same limits, deductibles, endorsements, and exclusions. The lowest quote may be the lowest because it provides less coverage than you actually need.
Business insurance cost by policy type
Type of business insurance | Typical monthly cost* | What it can cover |
$45 - $79 | Claims that your business caused bodily injury or property damage to someone else, plus some advertising-injury claims | |
Business owner’s policy, or BOP | $80 - $141 | General liability and commercial property coverage in one policy; it may also include business income coverage |
Professional liability insurance | $50 - $88 | Claims that your professional service, advice, or work caused a client a financial loss |
Workers’ compensation insurance | $54 - $121 | Medical care, lost wages, and related costs when an employee has a work-related injury or illness |
Commercial auto insurance | $245 - $574 | Liability and, if selected, physical-damage coverage for vehicles your business owns or uses |
Commercial property insurance | $108 - $140 | Damage to business property, such as equipment, inventory, furniture, and a building you own |
Cyber liability insurance | $27 - $129 | Certain costs tied to data breaches and cyber incidents, such as notifying affected customers and responding to an attack |
*Information gathered independently by Nav and valid as of Sept. 22, 2026
General liability insurance has published monthly benchmarks from $45 to $79. The figures vary based on amount of coverage, industry and location among other factors.
A BOP has published monthly benchmarks from $80 to $141. A BOP combines general liability and commercial property insurance, and it may include business income coverage, so it can cost less than buying eligible coverages separately.
Professional liability insurance has published monthly benchmarks from $50 to $88. It may be worth considering if a client could claim your professional advice, services, or work led to a financial loss.
Workers’ compensation insurance has published monthly benchmarks from $54 to $121. Most states require employers to carry workers’ compensation coverage, but state rules and exemptions vary.
Commercial auto insurance has published monthly benchmarks from $245 to $574. Commercial auto costs can swing widely depending on the vehicle, drivers, mileage, location, driving record, and type of business use.
Commercial property insurance has published monthly benchmarks from $108 to $140. It can help protect your equipment, inventory, furnishings, and other business property after a covered loss.
Cyber liability insurance has published monthly benchmarks from $27 for data-breach coverage to $129 for cyber insurance. Those products may not offer the same coverage, so compare the policy details — not just the premium.
What does a typical business insurance bundle cost?
The right business insurance cost depends on the kind of business you run and the policies it needs. These examples show how a business’s monthly cost can change when you add coverage for employees, business property, vehicles, professional services, or customer data.
The figures below are combined monthly benchmarks based on published policy averages for comparable businesses. They are not quotes, and your cost may be higher or lower depending on your location, payroll, revenue, policy limits, deductible, claims history, and the insurer.
Business type | Policies it may need | Combined monthly benchmark | Why the total can change |
Home-based consultant with no employees | General liability + professional liability | About $94 | Services offered, client contracts, coverage limits, and claims history |
Storefront retail business with employees | BOP + workers’ compensation | About $181 | Payroll, inventory, customer traffic, location, and industry |
Restaurant with employees that serves alcohol | BOP + workers’ compensation + liquor liability | About $405 | Payroll, customer traffic, kitchen equipment, food-service risks, alcohol sales, property value, and coverage limits |
Contractor with a small crew and work vehicle | General liability + workers’ compensation + commercial auto | About $513 | Trade, payroll, jobsite risk, vehicle type, driving history, and required limits |
Online business that handles customer data | General liability + cyber liability | About $174 | Type and amount of customer data, revenue, security practices, cyber limits, and claims history |
How much is LLC insurance per month?
LLC insurance can cost anywhere from under $100 a month for one basic policy to several hundred dollars a month if your business needs coverage for employees, vehicles, property, or customer data. The LLC itself doesn’t set the price — what your business does is what insurers look at.
For example, a home-based consultant might pay for general liability and professional liability insurance. A restaurant LLC with employees could need a BOP, workers’ compensation, and liquor liability coverage. An LLC that owns work vehicles may also need commercial auto insurance.
Forming an LLC can help separate your personal assets from certain business debts and legal claims. But it doesn’t pay to defend a lawsuit or cover a customer’s injury, damaged property, an employee injury, or a cyber incident. That’s what business insurance is for.
In other words, your LLC and your insurance work together. The LLC may offer a layer of legal separation between you and the business. Insurance may help the business pay covered claims before they become a bigger financial problem.
Your monthly cost will depend on the policies you need, your industry, location, revenue, payroll, claims history, coverage limits, deductible, and whether you have employees, vehicles, equipment, inventory, or customer information to protect.
For a closer look at what personal coverage may not cover, read Nav’s guide to personal vs. business insurance.
What factors determine your business insurance cost?
Your business insurance cost is based on the risks your business brings to the table. A home-based consultant who works at a computer all day won’t be priced the same way as a contractor working around ladders, job sites, tools, and other people’s property.
For example, consulting businesses pay an average of $32 a month for general liability insurance, while construction businesses pay an average of $90 a month. Construction coverage costs more because the risk of injuries or property damage is usually higher.
How to lower your business insurance costs
You can’t control every part of your premium, but a few smart moves can help you avoid paying more than you need to.
- Compare like-for-like quotes. Don’t compare the premium alone. Make sure each quote has the same policy limits, deductible, endorsements, and exclusions. The cheapest option may leave out coverage another quote includes.
- Bundle coverage when it makes sense. If you need general liability and commercial property insurance, a business owner’s policy, or BOP, can cost less than buying those policies separately. Just check that the bundle includes the coverage your business actually needs.
- Choose a deductible you could handle. A higher deductible can lower your monthly premium, but you’ll pay more out of pocket before insurance helps with a covered claim. Don’t choose a deductible that would put a real strain on your cash flow.
- Lower the risks you can control. Safety training, clear workplace procedures, security systems, regular equipment maintenance, driver policies, and basic cybersecurity habits can reduce the chance of a claim. Fewer claims may help keep your premiums from rising.
- Keep your business information current. Update your insurer when payroll, revenue, headcount, vehicles, or operations change. Accurate information can help prevent a surprise premium adjustment after an audit, especially for policies priced using estimated payroll or sales.
The bottom line
Business insurance can be affordable if you only need one basic policy, but there isn’t one number that works for every business. Your total depends on the coverage you need—whether that’s general liability alone or a bundle that also includes property, workers’ compensation, commercial auto, cyber coverage, or something else.
Start by identifying the risks your business actually faces, then compare quotes with the same limits, deductible, and coverage details. That way, you’re not just picking the lowest price — you’re choosing coverage that fits your business and your budget.