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If you run a small business, you're probably looking for cheap business insurance. But as you'll see, your state and industry can make a big difference in how much you pay. For example, a construction business will pay about three times as much for general liability insurance as a photography business.
You need to understand the risks common to your industry and buy enough business insurance to cover those risks. By taking steps to mitigate your risks and comparing business insurance prices, you may be able to reduce the cost of your business insurance.
Comparing small business insurance companies
When shopping for cheap small business insurance, you want to find a good company that offers the coverage you need at a fair price.
Here we have handpicked the best small business insurance companies to get you started.
Cheapest states to buy small business insurance
Where your small business is located will affect the cost of business insurance. Here are some states where small business insurance costs are lower than average, according to Insureon:
Source: Insureon
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The cheapest liability insurance by industry
Different industries affect the cost of insurance for small businesses. Industries with a higher risk of causing bodily injury or property damage will pay more for general liability insurance than those with a lower risk of bodily injury or property damage. For example, according to Insureon, the average cost of general liability insurance for a construction business is $80, compared to $29 for an accounting business.
Source: Insureon
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The cheapest workers' compensation insurance by industry
Small businesses with a higher risk of employee injury or illness can expect to pay more for workers' compensation insurance than those with a lower risk. For example, according to Insureon, the average cost of workers' compensation insurance for a construction job is $254 per month, compared to $33 per month for an accounting job.
Source: Insureon
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Professional liability insurance costs
If your industry poses a high risk of causing financial harm to others, you can expect to pay more for professional liability insurance. For example, according to Insureon, architectural design professionals pay an average of $142 per month for professional liability insurance, while medical professionals pay $40 per month.
Source: Insureon
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Featured Partner Offers
Complaint level
Very low
AM Best Financial Strength Rating
A- (Excellent)
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Compare quotes from participating carriers on Simplybusiness.com
AM Best Financial Strength Rating
A (Excellent)
Compare quotes
Compare quotes from participating carriers on Simplybusiness.com
AM Best Financial Strength Rating
A++ (Excellent)
Compare quotes
Compare quotes from participating carriers on Simplybusiness.com
How to get cheap business insurance
methodology
We ranked commercial insurance companies based on commercial liability and commercial property insurance complaints data, which is sourced from complaints supported by each state's department of insurance and collected by the National Association of Insurance Commissioners.
Business insurance made simple
Compare free quotes from top insurance companies with Simply Business and you can have your policy in place in under 10 minutes.
Business insurance made simple
Compare free quotes from top insurance companies with Simply Business and you can have your policy in place in under 10 minutes.
Frequently asked questions about cheap business insurance
What information do I need to apply for business insurance?
To get an accurate quote for small business insurance, you will need to gather basic information such as your industry, place of business, business partners, revenue, number of employees, annual salary, business equipment (including tools, computers, and materials), insurance history, and past claims.
How much does small business insurance cost?
According to Insureon, the average cost of insurance for a small business is $57 per month. This is the cost of a business owner's policy (BOP), which includes general liability, commercial property, and business interruption insurance.
Small business insurance premiums vary depending on factors such as your industry, years of experience, business location, number of employees, payroll, business assets and the type of coverage you choose.
Do you really need business insurance?
Without business insurance, you may have to pay out of pocket for claims against your company and the cost of replacing damaged business property. Many business owners purchase business owners insurance to cover a variety of issues, including lawsuits against their company, theft or damage to business property, and compensation for lost income.
Depending on your business, you may need to purchase additional coverage types. For example, if you have employees, your state likely requires workers' compensation insurance, and if you or your employees use vehicles for work, you'll need commercial auto insurance.