The real answer depends on your industry, size, and risk profile. Here's what small businesses actually pay — broken down by policy type with real numbers.
Most small businesses pay between $1,000 and $5,000 per year for a basic commercial insurance package. That typically includes general liability and either commercial property or a Business Owner's Policy. Add workers' comp, commercial auto, and specialty coverages, and the total can range from $3,000 to $12,000+ per year depending on your industry and headcount.
But averages are misleading. A solo marketing consultant working from home might pay $800/year total. A 15-person construction company with three vehicles could pay $15,000+. The variables matter more than the averages.
General Liability: $400–$1,500/year for most small businesses. Higher-risk industries (construction, manufacturing) pay more. Low-risk industries (consulting, tech) pay less. This is the most common standalone policy and the one most contracts require.
Business Owner's Policy (BOP): $500–$2,000/year. Bundles GL with commercial property and business interruption. Almost always cheaper than buying GL and property separately. Best for businesses with a physical location.
Workers' Compensation: $500–$5,000+/year. Based on payroll, industry classification, and claims history. Office workers cost ~$0.20 per $100 of payroll. Construction workers cost $5–$15+ per $100 of payroll. Required by law in almost every state.
Commercial Auto: $1,200–$3,000/year per vehicle. Depends on vehicle type, driver records, and coverage limits. Required if any vehicle is used for business purposes.
Professional Liability (E&O): $500–$3,000/year. Essential for any business that provides advice, consulting, or professional services. Cost depends on industry, revenue, and claims history.
Cyber Liability: $500–$2,000/year. One of the most underpriced coverages relative to the risk. Any business that handles customer data should carry it.
Low-risk industries pay less. A home-based consulting firm with no employees might spend $800–$1,500/year on GL and professional liability. A small tech startup with five employees might spend $2,000–$4,000/year on GL, E&O, and cyber.
High-risk industries pay more. A general contractor with a crew of ten and two trucks might spend $8,000–$15,000/year on GL, workers' comp, commercial auto, and tools/equipment coverage. A restaurant with 20 employees could spend $6,000–$12,000/year on a BOP, workers' comp, liquor liability, and an umbrella.
The industry classification code assigned to your business is the single biggest factor in your premium. It reflects the statistical risk of your type of work — not your specific business practices. That's why claims history and safety programs matter: they're the levers you can pull to lower your rate within your classification.
Five factors have the biggest impact on your premium: industry risk (you can't change this), claims history (you can improve this), revenue and payroll (these grow with your business), coverage limits (higher limits cost more), and deductible level (lower deductibles cost more).
Location also matters. States with higher litigation rates, stricter workers' comp requirements, or more expensive medical costs will have higher premiums. California, New York, and Florida tend to be more expensive than states like Idaho or Nebraska.
Work with an independent agent who can shop multiple carriers. Carrier pricing varies dramatically for the same coverage — one carrier might be 40% cheaper for your specific industry and risk profile. A captive agent (one who works for a single carrier) can only offer you that carrier's price.
Bundle policies when possible (BOPs are cheaper than separate GL + property). Maintain a clean claims history. Implement safety programs. Classify employees accurately. Review coverage annually to avoid overpaying for risks that have changed. And don't chase the cheapest premium — chase the best value. A $500/year policy that denies your $100,000 claim is infinitely more expensive than a $1,200/year policy that pays it.
At risk | x, we quote commercial insurance packages in minutes — not days. Send us your industry, approximate revenue, headcount, and what coverages you think you need. We'll come back with options from multiple carriers so you can compare coverage and cost side by side.
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