CostPrism
Business Updated June 2026

Business Insurance Cost Calculator

Calculate 2026 small business insurance costs by business type, annual revenue, and coverage type — general liability, BOP, professional liability, and more.

National avg: $1,200/year
Range: $500 – $5,000/year
Used by 27,650 people

Enter Your Details

What Affects the Cost?

1. General Liability Insurance

The most common small business policy. Covers third-party bodily injury, property damage, and advertising injury. Cost: $500–$1,500/year for most small businesses. Retail and contractors pay more ($1,000–$3,000/year) due to higher risk. Professional service firms pay less ($500–$800/year).

2. Business Owner's Policy (BOP)

Bundles general liability + commercial property insurance. Best value for most small businesses. Cost: $500–$2,500/year depending on property value and business type. BOPs are available for businesses under ~$5M revenue with <100 employees. High-risk industries (restaurants, contractors) may not qualify.

3. Professional Liability / E&O

Covers claims of negligence, errors, or omissions in professional services. Essential for consultants, IT firms, accountants, marketers, and agencies. Cost: $500–$3,000/year for small professional firms. Tech companies and healthcare providers pay more. Claims can be $100,000+ — critical coverage.

2026 Cost Reference Table

Type / Option Typical Cost Range
General liability (retail/office, <$500K revenue) $500 – $1,500/year
General liability (contractor) $1,200 – $3,500/year
BOP (office-based business) $500 – $1,500/year
BOP (retail with inventory) $1,000 – $3,000/year
Professional liability / E&O $500 – $3,000/year
Cyber liability insurance $500 – $5,000/year

Frequently Asked Questions

Most small businesses pay $500–$3,000/year for basic coverage. General liability alone averages $1,200/year. A Business Owner's Policy (BOP) averages $1,200–$2,500/year and includes both liability and property protection. Contractors and high-risk businesses pay significantly more.

Workers' compensation is required in most states when you have employees. Commercial auto insurance is required if you use vehicles for business. General liability is NOT legally required in most states but is typically required by clients, landlords, and contracts.

Yes. Homeowners insurance does NOT cover business activities, equipment, or liability. If a client is injured during a home visit or if business equipment is stolen, your homeowners policy won't cover it. A home-based business policy or BOP rider costs $250–$500/year.

Compare Small Business Insurance Quotes

Most small businesses save $200–$500/year by comparing at least 3 insurance quotes. Takes less than 10 minutes online.

Get a Quote from The Hartford NEXT Insurance — Instant Online Quotes

Tips Before You Start

  • ✓ A BOP (Business Owner's Policy) bundles GL + property for 15–25% less than buying separately
  • ✓ Home-based businesses are NOT covered by homeowners insurance for business activities
  • ✓ Professional liability (E&O) is essential for consultants, agencies, and tech companies
  • ✓ Workers' comp is legally required in most states the moment you hire your first employee
  • ✓ Bundling multiple policies with one insurer saves 10–20% vs. separate carriers

Cost by State — 2026

Based on national average pricing adjusted for local labor and material costs.