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How Much Does $1 Million of Business Insurance Cost?
On average, a $1 million liability insurance policy costs $69 a month, or $824 a year, for our small business owners.** However, liability insurance costs vary across businesses depending on factors like your:
- Payroll size
- Claims history
- Industry
- Exposure to risk
It’s also important to note that one million dollars in liability coverage isn’t always exactly what every type of business needs. You may need more or less coverage than that depending on your specific business.
To learn more about general liability insurance costs and what your insurance rates will be, get a quote today.
What Factors Affect the Cost for Business Liability Insurance?
Business insurance costs vary depending on your operation. To determine your insurance premium, insurance companies will look at your:
- Industry
- Type of assets
- Number of employees
- Size of payroll
- Claims history
- Property owned
They’ll use these factors to give you an aggregate limit for coverage that’s right for your business. Generally, you’ll pay a higher premium for coverage if your business:
- Has employees that face risk each day on the job
- Is in a high-risk industry
- Has an existing history of insurance claims
To learn more about the insurance coverage limits you need, get a quote today.
What Does It Mean To Have $1 Million in Liability Insurance?
A $1 million general liability insurance policy means your coverage pays up to $1 million in damages for a covered loss. You'll have to pay any additional costs beyond $1 million. It’s important to note that $1 million in liability coverage isn’t always exactly what every business needs. You may need more or less coverage than that depending on your business.
Other Kinds of Business Insurance
Keep in mind that a $1 million liability policy doesn’t cover every type of claim. So, you'll likely need other types of business insurance to make sure you’re fully protected.
Read about three types of coverage many small business owners need.
1. Workers Compensation Insurance
Workers’ compensation insurance helps provide benefits to employees with a work-related injury or illness. It can help:
- Pay for medical care
- Replace lost wages if your employee needs time off work to recover
- Provide disability benefits
- Coverage damages if an employee sues you because of a work-related injury
Workers’ compensation insurance costs an average of $86 a month, or $1,032 a year.**
2. Business Owner’s Policy (BOP)
A Business Owners’ Policy (BOP) combines business property and business liability insurance into one convenient policy. It can help cover your business from claims resulting from fire, theft and other covered incidents.
On average, our small business owners pay $1,687 a year, or $141 a month, for a BOP.**
3. Commercial Auto Insurance
Commercial auto insurance helps protect you and your employees on the road if you drive a business-owned vehicle for work.
The amount you’ll pay for commercial auto insurance depends on the type of vehicles your business uses . In many cases, contractor-based businesses like electricians have a higher monthly cost than other types of businesses. Some other factors that can influence how much you pay include your:
- Location
- Amount of coverage chosen
- Driving record
On average, our small business owners pay an average of $574 a month for commercial auto insurance.**
Get a $1 Million Liability Insurance Policy Quote
Small business insurance is essential for running a successful operation. We’ve been helping businesses for over 200 years get the protection they need. We can help you find annual premiums for coverage that work for your budget and business. To learn more, get a quote today.
Last Updated: April 11, 2025
** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.