How Much Does Small Business Insurance Cost in 2026?
A typical small business pays $500–$1,500 per year for a Business Owner’s Policy in 2026. Here is the cost breakdown by coverage and what changes the price.
A typical small business pays $500–$1,500 per year for a Business Owner’s Policy (BOP) in 2026 — the bundle of general liability and commercial property most businesses start with. Add workers’ comp, professional liability, or cyber and the total rises. Here is the full breakdown.
Small Business Insurance Cost by Coverage
- Business Owner’s Policy (BOP): $500–$1,500 per year
- General Liability alone: $40–$120 per month
- Workers’ Compensation: $0.75–$2.74 per $100 of payroll, depending on the trade and state
- Professional Liability (E&O): $500–$2,000 per year
- Cyber Liability: $500–$2,000 per year for $1M in coverage
What Changes the Price
- Your industry and its risk level
- Annual revenue and payroll
- Number of employees
- Coverage limits and deductibles
- Your state and claims history
How to Save on Small Business Insurance
The biggest lever is the BOP bundle itself: combining general liability and property into one policy is usually 10–15% cheaper than buying them separately. Working with an independent agency that shops multiple A-rated carriers gets you the best rate rather than the only rate.
Do I Need Business Insurance If I Have an LLC?
Yes. An LLC protects your personal assets from business debts, but it does not pay for lawsuits, property damage, or injured employees. You still need real insurance to cover those.