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How Much Does Small Business Insurance Cost?
On average, small business customers of The Hartford pay about $85 per month and $1,019 per year in business insurance costs.** However, what a small business pays for business insurance will often depend on several different factors, like the coverage you need and the industry you’re in.
Want to learn more about how much business insurance will cost for your business? Get a quote from The Hartford today.
| Coverage | Average Annual Premium | Average Monthly Premium** |
|---|---|---|
| Business Owner’s Policy (BOP) | $1,687 | $141 |
| General Liability Insurance (GLI) | $810 | $68 |
| Workers’ Compensation Insurance | $1,032 |
$86
|
| Professional Liability Insurance (PLI)2 | $744 | $62 |
Business Insurance Costs by Industry
Insurance premiums will often vary between industries because each industry faces unique risks. The best way to safeguard your business is to find the right type of insurance customized to your business’ needs. Although costs will vary, you can learn what certain industries pay on average for a Business Owner’s Policy (BOP) with The Hartford in the table below.
| Industry | Average Monthly Premium for a Business Owner’s Policy** |
|---|---|
| Business Consulting | $86 |
| Accountants | $85 |
| Engineering | $107 |
| Retail Stores | $152 |
| Restaurants | $413 |
| Manufacturers | $115 |
| Photographers | $72 |
| Beauty Salons | $113 |
| Barbershops | $110 |
How Business Insurance Costs Are Calculated
Many people ask what the median cost of business insurance is, but it really depends on what kind of business you have. For example, higher risk companies can expect to pay more for insurance. That’s why looking at this average isn’t always helpful for small business owners that want an estimate of their own costs. Instead, focus on the average costs in your specific industry.
In many cases, it’s more realistic to plan your insurance costs based on your:
- Industry type: Your industry may impact the cost for business insurance because of the risk factors associated with the work you do.
- Business operations’ size: If your business has expanded its operations and increased in overall size, you’ll most likely need to get additional coverage.
- Number of employees: If you have more employees, you’ll need more coverages to keep them protected from risks like customer lawsuits and accidents, injuries or illnesses they might experience on the job.
- Coverage needs: Each business has different coverage needs because each business is unique. Some companies may be legally required to carry certain coverages depending on what you do and where you’re located.
- Industry risk: Typically, riskier businesses pay more for insurance. Risk factors can include financial and physical risks to your business, employees, vendors and customers. Learn more about business insurance by industry today.
- Business location: Companies located in heavily populated areas often experience a higher likelihood of crime or vandalism, which can cause your rates to go up. State business insurance requirements also vary, which can impact your commercial property insurance cost.
- Public visibility: People may target well-known businesses in the public eye more often than lesser known companies. For this reason, insurance rates may increase as you gain more of a reputation.
- Payroll size: Your payroll helps determine your workers’ compensation benefits. The larger your payroll, the higher your premium will be because there’s a higher risk for bodily injuries.
- Coverage levels: The more coverage you add to your policy and the higher the limits, the more you’ll pay. Sometimes, choosing a higher deductible can help lower your monthly or annual premiums.
How To Save on Business Insurance
We know how important it is to protect the business that you’ve worked so hard to build. Without the protection of business insurance, your business would have to pay out of pocket for costly claims. If you’re ready to get business insurance, be sure to consider these ways to save money while getting the coverages you need:
- Bundle your policies: You can save money on business insurance by bundling essential coverage into one policy. For instance, a Business Owner’s Policy (BOP) combines business income, commercial property and general liability insurance into one convenient policy.
- Pay your premium up front: It’s always an option to pay your premium monthly, but if you pay the entire cost upfront each year, you could get a discount on your business insurance costs.
- Raise your deductible: Your deductible is the amount you’ll pay out of pocket before your insurance company will cover a claim. By increasing your deductible, you may be able to lower your total insurance costs per month.
Get a Quote for Business Insurance From The Hartford
We’re an insurance company you can trust to help protect your business. Learn more about what business insurance is and when to get business insurance. We also offer free online insurance quotes you can get quickly and easily.
Last Updated: April 9, 2025
2 What you pay for professional liability insurance will vary by product, limits chosen and risk class or hazard group associated with your business.
** 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.