While there really are no average business liability insurance costs for both small and large businesses, we can consider some sample scenarios. A sole proprietor might pay $500 per year for general liability insurance, but a small consulting firm is likely to pay over $3,000 per year.

What kind of insurance do small businesses need?

Small business owners can get a good idea of the average cost of business insurance by looking at pricing data from the thousands of businesses that found policies with Insureon. The first policy that most business owners need – and also the least expensive one – is general liability insurance.

How much does general liability insurance cost per month?

In an analysis of 28,000 small business owners who purchased commercial insurance through Insureon, the median cost of general liability insurance was $42 per month or $500 per year. The median cost of a business owner’s policy, which bundles general liability with property insurance at a discount, was $53 per month or $636 annually.

How is the cost of business insurance calculated?

The cost of your policy is calculated using several basic factors including your profession, number of employees and coverage needs. You can expect to pay more than the average rate if you require more coverage, lease a unique property or have a history of claims.

How much does Workers Comp Insurance Cost a business?

Rates vary widely from state to state. Insureon’s customers pay a median annual premium of $560 for workers’ comp insurance. Some businesses pay much more. Examples are construction and landscaping businesses, which pay $3,264 and $1,813, respectively.

Why is health insurance so expensive for small businesses?

This can push up the total cost of small business health insurance, whether for the employer, for their workers, or for both.