What U.S. small businesses pay for insurance - by state and town

National 2026 medians for seven coverage lines, per-state workers' comp rules, and cost guides for 19,000+ U.S. towns - with online quotes from carriers that clear a public claims-strength bar.

$45-$83/monational medians, general liability to BOP bundle, 2026

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The median U.S. small business pays $45 a month for general liability - $538 a year in 2026 policy data.

A business owner's policy bundles property with liability for a median $83 a month across the United States.

Workers' comp rules differ by state across the U.S. - 40 states require it from the 1st employee, while Texas and South Dakota leave it elective.

This guide tracks what small businesses actually pay for coverage in 19,000+ U.S. towns, and the state rules that change the math. Pick your state below, or start with the national medians and the carriers that clear our claims-strength bar.

What business insurance costs in 2026

Coverage	Median monthly	What it covers
General liability	$45	Injuries to others and damage to their property
Business owner's policy (BOP)	$83	GL plus your own property and lost income
Professional liability (E&O)	$88	Claims that your work or advice caused a loss
Workers' compensation	$54	Employee injury care and lost wages
Commercial umbrella	$86	Extra limits above your other liability policies
Commercial property	$108	Standalone cover for gear, inventory, premises
Cyber insurance	$129	Data breach response and liability

The median U.S. small business pays $45/month for general liability and $83/month for a business owner's policy.Source: Insureon policy medians (100,000+ customers), updated February 2026

Compare business insurance quotes

These carriers quote small businesses online in about ten minutes. Prices come from the carrier, not from this site.

NEXT InsuranceBuilt for contractors and trades - AM Best A- (Excellent)Check your rate with NEXT

HiscoxProfessional liability specialist - AM Best A (Excellent)Get a Hiscox quote

Simply BusinessLicensed broker - compares several rated carriers at onceCompare with Simply Business

Disclosure: this is an independent guide. If you start a quote through a link here, the carrier may pay this site a referral fee. That fee never changes the price you are quoted.

Why only these carriers

Ask any owner who has actually filed a claim: the premium is not what they remember - the payout is. This guide ranks carriers on claims strength first, using two public measures anyone can verify: AM Best financial strength ratings (an insurer's ability to pay) and NAIC complaint indexes (how often policyholders complain to regulators). Only carriers that clear both appear here.

Price is easy to compare; claims behavior is not. The most expensive insurance is the policy that does not pay. Before any carrier appears in this guide it must clear two public bars: an AM Best financial strength rating of A- (Excellent) or better, and a complaint record at or below the national median in NAIC state filings. A carrier that falls below the bar gets removed from every page on this site.

Carrier	Claims-strength rating	Background
NEXT Insurance	AM Best A- (Excellent)	Small-business specialist, backed by Munich Re (ERGO)
Hiscox	AM Best A (Excellent)	Underwriting small business risk for over 100 years
Simply Business	Licensed broker	Places policies only with licensed, rated carriers

AM Best financial strength ratings grade an insurer's ability to pay claims; NAIC complaint indexes track policyholder complaints against the national average.Source: AM Best Rating Services

How quotes work

The fastest path to a real number is quoting with two carriers and comparing line by line: same limits, same deductible, same endorsements. A ten-minute quote from each is enough to see whether your business prices above or below the $45-a-month median.

What the business does - carriers price by trade class code
Payroll, if you have employees - drives workers' comp
Annual revenue - drives liability pricing
Business address and years operating in the United States
Claims history, if any - three clean years helps pricing

Common questions

Is business insurance required by law in the United States?

Two lines can be legally required: workers' compensation once you reach the state employee threshold, and commercial auto liability for business vehicles. General liability is not state-mandated, but leases and client contracts routinely require it.

Is business interruption coverage worth it?

It only pays when a covered physical event - fire, burst pipe - closes your location, but when it pays it replaces the income a closed business is not earning. It comes bundled inside most BOPs rather than as a separate policy.

What is a certificate of insurance?

A one-page proof-of-coverage document carriers issue on request, listing your policy types, limits and dates. Landlords, GCs and clients in the United States ask for it before signing - carriers email it same-day, usually free.

Do I need workers' comp if I only use subcontractors?

It depends on the state and on whether the subs carry their own coverage - several states count uninsured subcontractors as your employees for comp purposes. Verify with the your state's Department of Insurance before assuming you are exempt.

Does getting a quote affect my current policy or credit?

No. Business insurance quoting does not involve a credit pull in most states and never touches an existing policy. Owners routinely re-quote at renewal to keep their carrier honest.

Are online quotes as accurate as an agent's?

They are built from the same underwriting inputs - trade, payroll, revenue, location, claims. The price is bindable, not an estimate. What an agent adds is judgment on coverage shape, which matters most for unusual or high-risk operations.