The cost of small business insurance in 2025 generally ranges depending on the type of coverage and the business specifics. Here are typical costs for common insurance policies:
- General Liability Insurance: About $42 to $80 per month ($500 to $1,000 annually). This protects against legal costs if someone is injured or property is damaged due to your business.
- Business Owner's Policy (BOP): Around $57 to $85 per month ($684 to $1,020 annually). This bundles general liability and property insurance, protecting both your business and physical assets.
- Workers' Compensation: Typically $45 to $50 per month, depending on employee salaries and risk.
- Professional Liability: $61 to $100 per month, important for consultants and freelancers covering claims of errors or missed deadlines.
- Commercial Auto Insurance: $147 to $270 per month to cover business vehicles.
Overall, many small businesses pay between roughly $500 and $1,000 per year for basic coverage, but this can increase with added policies or higher risk industries. Some sources note an average around $85 to $101 per month for small business insurance with common coverages included. Costs vary with factors like industry risk, business size, location, and claims history. For very low-cost options, some policies start as low as $17 per month for basic general liability insurance depending on the insurer. In summary, small business insurance typically costs on the order of $500 to $1,200 annually on average for standard packages, with specific premiums varying by type of insurance and business risk factors.
