What Is the Average Cost of Business Insurance?
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Average Cost of Business Insurance
Understanding the cost of business insurance is crucial for every entrepreneur. Whether you’re a startup or an established company, knowing what to expect can help you budget wisely and avoid unnecessary risks.
What Is the Price of Business Insurance?
The price of business insurance varies based on several factors, but for small businesses in the U.S., the average cost ranges from $500 to $3,000 per year depending on industry, size, location, and coverage needs.
Key price ranges by type:
| Type of Insurance | Average Annual Cost |
|---|---|
| General Liability Insurance | $400 – $1,500 |
| Professional Liability | $600 – $2,000 |
| Commercial Property Insurance | $500 – $2,500 |
| Workers’ Compensation | $900 – $2,500 |
| Business Owner’s Policy (BOP) | $500 – $2,000 |
What Is the Average Cost of Business Insurance?
While prices vary, the average cost of business insurance across all industries is typically around $1,200 per year. Most small businesses pay between $100 and $250 per month depending on the level of risk.
Factors that impact cost include:
Business size and revenue
Industry risk level
Coverage limits and deductibles
Location (state regulations and risk exposure)
Claims history
What Is the Cost of Business Insurance for Small Businesses?
If you’re just starting out, don’t worry—small business health insurance or liability plans are often more affordable than expected. The average cost of small business insurance ranges from $500 to $1,800 annually, making it a manageable investment in your protection and longevity.
For health-related plans, the average cost of small business health insurance can be $6,000 to $7,000 per employee per year, but this varies widely depending on the plan type.
How to Reduce Business Insurance Costs
Here are proven strategies to lower your premiums:
Bundle policies into a Business Owner’s Policy (BOP)
Increase your deductible to lower monthly payments
Improve workplace safety to reduce liability risk
Shop around and compare offers from multiple providers
Work with a broker who checks dozens of carriers
Is Business Insurance Worth It?
Absolutely. One unexpected lawsuit, fire, or injury claim can wipe out a small business without insurance. Business insurance is not just protection—it’s peace of mind.
Final Thoughts: How to Get the Best Price
The best way to determine your actual price is to get a personalized quote. Don’t guess—let experts help.
At THAgency, we search nearly 100 carriers with over 30 years of experience to find the right policy for your business—at the best price.
Start now and see your options instantly. Get your personalized quote today. It’s fast, secure, and tailored to you.
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