Last Updated: March 27, 2024, 2:07 pm by TRUiC Team

Business Insurance

Small businesses need insurance to protect themselves from a variety of risks, including natural disasters and lawsuits from employees and customers.

We'll help you find the right types of business insurance to fit your needs (and your budget).

Recommended: Next Insurance is dedicated to matching small businesses with the right policies at the best price.

Small Business Insurance

How Much Will It Cost to Protect Your Business?

Insurance companies use several factors to calculate your monthly premium. Some of the well-known aspects include: 

  • Type of coverage
  • Number of employees
  • Geographical location of your business
  • Industry 
  • Financial stability 
  • Existing safety and security features of your building, equipment, and/or vehicles

It’s estimated that small businesses pay anywhere from $14–$124/month for any one kind of insurance coverage. 

Affordability is an important factor in choosing business insurance — take a look at our low-cost business insurance guide to learn more about pricing. Below is a chart that shows you the average cost of popular types of coverage:

Business Insurance Costs at a Glance

Type of Policy  Average Monthly Cost Average Annual Cost
General Liability Insurance $30 $360
Commercial Property Insurance $63 (median) $756 (median)
Inland Marine Insurance $14 (median) $169 (median)
Cyber Liability Insurance $123.75 $1,485
Business Interruption Insurance $40 $480
Workers Compensation $70 $840
Total Average Cost: $340.75 $4,090

Sources: AdvisorSmith, The Hartford, Hiscox, and Insureon

Compare Quotes Online

Use our dedicated small business insurance provider to generate a quick and accurate online quote created specifically for your small business.

Types of Business Insurance

The type of insurance your business needs will depend on what you do and the size of your business.

A good first line of defense — or rather, if you only were to choose one policy — then it should be general liability insurance. General liability will help protect your business against the most common risks like personal injury and property damage.

Other types of business insurance include:

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Small Business Insurance by State

Business Insurance requirements can vary state by state. When looking at what business insurance you will need, as well as those that are highly recommended, be sure to familiarize yourself with your state’s requirements. Check out our guide on Business Insurance Requirements by State.

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Business Insurance FAQ

Business insurance covers businesses from losses that can happen in the natural course of doing business. This can come from various situations, like property damage, lawsuits, loss of business income, bodily injury, fire, and more.

What you choose to get covered depends on your industry and the different types of policies you choose to take on for your business.

Businesses need insurance for several reasons. Depending on the state they operate in, businesses may be required to get specific types of insurance like workers’ compensation

In addition to this, some businesses may refuse to work with you unless you carry your own insurance, as they do not want to assume the risks and liability for your work on their own insurance.

You should get business insurance when you start your business, especially if you plan to start doing business right away. This way, you can be protected from the very beginning from any lawsuits, property damages, costs associated with bodily injury, and anything else that could happen to your business.

The cost of business insurance for a small business is typically between $700 and $3,800 a year, but this depends greatly on what types of insurance your business needs.

We recommend doing some research into the risks faced by your business and getting a business insurance quote from a trusted source.

Additional Resources

Learn more about business insurance for: