how much is insurance for a small business

The average cost of insurance for a small business in 2025 generally ranges from about $500 to $1,207 annually. Monthly premiums vary depending on the type of coverage, with examples including general liability insurance averaging around $42 per month ($500 per year), business owner’s policy about $57 per month ($684 per year), and higher-cost policies like cyber insurance averaging $145 per month ($1,740 annually). The actual cost depends on factors such as the business type and industry, location, number of employees, claims history, and coverage limits chosen. Solo consultants might pay less than $100 a month, while small teams typically pay between $885 and $1,767 per year. Higher-risk businesses like catering may incur costs around $5,000 annually. Bundling policies and implementing risk mitigation measures may reduce premiums.