how much does insurance cost for a small business

The average cost of insurance for a small business in 2025 typically ranges from $500 to $1,207 annually, depending on the type of coverage and other factors. For example, general liability insurance averages about $500 per year ($42 per month), business owner's policy (BOP) costs around $684 per year ($57 per month), and cyber insurance is higher at about $1,740 per year ($145 per month). Costs can vary widely by business type, size, industry risk, number of employees, location, coverage limits, and claims history. Monthly premiums for small businesses often range from under $100 for solo consultants or home- based businesses up to several hundred dollars for businesses with more employees or higher risk profiles. High-risk industries such as catering or construction can pay upwards of $5,000 annually, while lower-risk industries like consulting or web design may pay closer to $300–$700 a year. Bundling policies, paying annually, raising deductibles, and implementing risk mitigation can lower premiums. In summary, small business insurance costs are highly personalized but expect to pay roughly between $500 and $1,200 annually for common coverages, with higher or lower costs depending on business specifics and chosen policies.