How much does small 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 Feb 28, 2024
4 min read
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Business Insurance costs

The cost of business insurance is a part of doing business. But the factors that influence how much a business will pay for coverage is determined by several unique factors.

Jump ahead to learn more about steps you can take to find reliable small business insurance with the protection you need.

How much does small business insurance cost?

Small business insurance doesn’t need to be expensive. The exact price you’ll pay depends on:

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

Small business 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:

General Liability insurance

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

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

For professional mistakes that cause someone else a loss.

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

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

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.

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


Get an instant quote to see your cost for small business insurance. You can get an accurate, personalized quote in under 10 minutes.

What’s the cost of small business insurance by industry?

Learn more about what different types of businesses pay for business insurance coverage.

General contractorsRestaurantsHouse cleaners
HandypersonsRetail storesCarpet cleaners
ElectriciansCateringJanitorial services
FlooringBakeriesPressure washers
Lawn careCoffee shopsLaundromats
PaintersFood trucksWindow cleaners

How can I get a business insurance quote?

You can get fast, tailored and affordable business insurance options in minutes when you start a free insurance quote with NEXT.

We’ll ask basic questions about your business needs and operations which we’ll use to create a customized insurance quote.

You can adjust the limits and add additional recommended coverage. If you decide to make a purchase, you’ll be covered as soon as you make a payment. And you’ll get instant access to your certificate of insurance.

Insurance through NEXT can be secured 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 premiums. These might include:

  • Type of business
  • Industry
  • Business structure (sole proprietor, LLCs, corporations)
  • Business location
  • Size
  • Revenue or business income
  • Payroll
  • Claims history
  • Coverage limits and deductibles chosen
  • Level of risk in business operations and activities
  • Number of employees
  • Value of assets being insured
  • Type of vehicle you drive
  • Driving record

A lot of factors, right? Insurance companies also consider external factors like economic conditions and market trends when determining the cost of annual premiums.

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. And you can save up to 10% if you purchase 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 more 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 Senior Content Marketing Editor for NEXT. Her writing and editing has been serving small business owners and startups for several years.
*The cost data presented here are based on NEXT active customers in the U.S. who purchased general liability 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 February 2024.
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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.

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 December 6, 2023. 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.