How much does business insurance cost?

Learn more about the average cost of insurance for small businesses and factors that influence pricing.

Karen Solomon
By Karen Solomon
Published Sep 16, 2025
4 min read
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Business Insurance costs

A small business insurance policy doesn’t need to be expensive. The exact price you’ll pay depends on a number of factors, including:

  • Your business operations (high-risk vs. low-risk operations).
  • What type of coverage you buy.
  • The insurance provider you choose.
  • How much you’re willing to pay out of pocket after an accident or mistake.

What is the average cost of business insurance for a small business?

Small business owners’ insurance is often made up of different policies that provide protection for different risks.

You might decide to buy a combination of general liability coverage, commercial property insurance and workers’ compensation insurance to protect your business and meet state or local requirements.

If you buy more types of coverage, you could have higher insurance costs, also known as higher premiums.

Your coverage limits (or policy limits) could also affect your cost, including:

Finally, your deductible (the amount you pay before your insurance policy kicks in) can also be a factor in how much you pay.

These are the minimum monthly premium costs† and the average cost of insurance for the majority of NEXT customers:

TYPE OF POLICYMINIMUM MONTHLY COSTMONTHLY COST PAID BY THE MAJORITY OF NEXT CUSTOMERS1
General Liability insurance

 

For injury claims involving non-employees or damage to property you don’t own.

 

Learn about the cost of general liability

As low as $19 per month$25-$45 per month
Professional Liability insurance

 

For professional mistakes that cause someone else a loss.

 

Learn about the cost of professional liability

As low as $19 per month$25-$45 per month
Workers’ Compensation insurance

 

Coverage for workplace bodily injury and illness. Often required by law.

 

Learn about the cost of workers’ comp

As low as $14 per month$45-$75 per month
Commercial Property insurance

 

Helps with replacement or repair costs for business property, including inventory, equipment, furniture and structures. It can also cover business income loss.

 

Learn about the cost of commercial property

As low as $18 per month$25-$75 per month

 

Get an instant quote in about 10 minutes to see your cost for small business insurance.

What’s the cost of small business insurance for your industry?

Learn what your business would pay for business insurance coverage.

You can get fast, tailored and affordable business insurance options in minutes when you check prices with NEXT.

We’ll ask basic questions about your business needs and operations and create a customized insurance quote in minutes.

Once you buy your policy, you can:

  • Adjust the limits or choose additional recommended coverage at any time.
  • Get instant access to your certificate of insurance (proof of insurance) to download or share.
  • Manage your policy 24/7 via web or mobile app.

Insurance through NEXT can be secured 100% online without an insurance agent. But if you have questions, our licensed, U.S.-based insurance advisors are ready to help.

What factors impact the cost of your business insurance premium?

Several factors impact the cost of business insurance. These might include:

  • Your type of business
  • Your industry
  • Your business structure (sole proprietor, LLC or corporation)
  • Business location
  • The size of your business
  • Revenue or business income
  • Payroll
  • Your claims history
  • The coverage limits and deductibles you choose 
  • The business risk of your operations
  • Number of employees
  • The value of the assets being insured
  • The type of vehicle you drive
  • Your driving record

A lot of factors, right? Insurance companies also consider external factors like economic conditions and market trends to determine the cost of business insurance.

How can you save money on business insurance?

These four tips can help reduce your small business insurance cost:

1. Bundle more than one policy 

Small business insurance comes in many forms. You can save up to 10% if you buy more than one type of business insurance with NEXT. 

Many businesses purchase a combination of these types of coverage for protection from different risks:

2. Lower your risk level

A safety and training plan can help prevent accidents — and accidents might increase your insurance premium. What’s the best way to lower your risk?

  • Make sure you and your employees are properly trained.
  • Focus on work that you know how to do.
  • Don’t do jobs you’re not trained to do.
  • Make sure you have coverage for the work that you do.
  • Keep your business or job site secure.
  • Keep your business and work area clean so no one trips on cords, furniture, equipment or tools.
  • Take steps to mitigate property damage and injuries from rain, wind, snow and inclement weather.

3. Learn from your previous claims history

Analyze your previous claims history and figure out what you could have done to avoid those risks. 

4. Pick the right limits and deductible 

Lower limits will save you money, but you’ll have a higher risk of financial loss if you don’t have enough business insurance coverage. 

If you choose a higher deductible, you could pay less for the policy.

Karen Solomon
About the author

Karen Solomon is a content marketing editor at NEXT. She has helped small business owners and startups as a writer, editor and content strategist for decades. When she's not slinging words, you can find her sailing, vintage shopping or doing things that dauschunds like to do.

1 The cost data presented here are based on NEXT active customers in the U.S. who purchased business insurance over the previous 12 months. These data should not be considered a substitute for obtaining a quote specific to your business. These data were updated in August 2025.
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NEXT is part of the ERGO Group, a Munich Re company.

Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.

** Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of March 21, 2025. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.