Small Business Insurance Cost
Insurance for your small business doesn’t have to be confusing or expensive. Quote, compare, and discover how Insurance Canopy is one of the smartest (and most affordable) ways to protect your dreams.
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- The average starting cost of small business insurance ranges from $20 to $125 per month, or $240 to $1,500 per year, with Insurance Canopy
- Your premium depends on factors like risk, revenue, and industry
- Paying annually instead of monthly can lower your total costs
- Comparing quotes from multiple providers ensures you’re getting the right coverage to protect your entrepreneurial endeavors
How Much Does Insurance Cost for Small Businesses?
The average starting cost of small business insurance with Insurance Canopy ranges from $240 to $1,500 per year.
The real cost you can expect to pay? That can vary depending on the coverage type, business industry, and the kind of coverage your business needs. It’s customized to you!
Average Cost of Small Business Insurance Per Month
The average cost of small business insurance per month ranges between $20 and $125/month. This is what many small businesses can expect to pay when buying a base policy with little to no optional coverages added.
Larger or higher-risk businesses typically pay more, with costs averaging $45 to $250 per month (or $540 to $3,000 per year).
How Much Does Small Business Insurance Cost by Industry?
While some low-risk businesses pay as little as $10 per month, higher-risk industries can pay over $100 per month.
Not all small businesses face the same level of risk, and your insurance costs often show it. The fewer risks you have, the less you’ll usually spend. Add people, products, or employees, and your price tag can start to increase.
| Industry | Starting Costs (Monthly) | Starting Costs (Annual) | Event Costs (If Any) | Risk Category |
|---|---|---|---|---|
|
$25
/month
|
$279
/year |
$49
/event |
Low |
|
|
$35
/month
|
$550
/year
|
$66
/event
|
High |
|
|
— |
— |
$275
/event |
High |
|
|
$10
/month |
$96
/year |
— |
Low |
|
|
$39
/month |
$435
/year |
— |
Medium |
|
|
$21
/month |
$229
/year |
— |
Low |
|
|
$19
/month |
$199
/year |
$59
/event
|
Medium |
|
|
$21
/month
|
$229
/year |
— |
Low |
|
|
$15
/month |
$159
/year
|
— |
Medium |
|
|
$26
/month
|
$299
/year
|
$49
/event |
Medium |
|
|
$104
/month |
$1,250
/year
|
— |
High |
|
|
$31
/month
|
$336
/year
|
— |
Medium |
|
|
$21
/month
|
$229
/year |
— |
Low |
|
|
$116
/month
|
$1,400
/year
|
— |
High |
|
|
$15
/month
|
$154
/year |
— |
Low |
|
|
$12
/month
|
$129
/year |
$59
/event |
Low |
|
|
$154
/month |
$1,850
/year |
— |
High |
|
|
Vendors and exhibitors |
— |
Coming Soon! |
$49
/event
|
Low |
|
$236
/month
|
$2,837 |
— |
High |
Averages are calculated from the monthly cost per industry within each category and shown as a yearly estimate. Policies vary by industry and coverage offerings, and individual premiums may vary.
Low-Risk Industries ($212/year)
These solopreneurs face lower risks, usually work with individuals rather than crowds, sell small-batch products, and usually avoid heavy machinery.
- Artists and crafters ($24/month)
- Beauty and bodywork professionals ($10/month)
- Consultants ($21/month)
- Educators and tutors ($21/month)
- Life coaches and mentors ($21/month)
- Pet professionals and businesses ($15/month)
- Photographers and videographers ($12/month)
Medium-Risk Industries ($311/year)
These pros are out and about, work big events, deal with multiple contacts, haul gear, or work in public spaces. There’s a bit more room for slip-ups, but nothing the right coverage can’t handle.
- DJs and live entertainers ($19/month)
- Cleaning professionals ($39/month)
- Fitness and wellness instructors ($15/month)
- Food and beverage businesses ($26/month)
- Landscaping professionals ($31/month)
Higher-Risk Industries ($1,548/year)
These businesses deal with large crowds, valuable goods, higher sales volume, or products with riskier outcomes. A win is worth more here, but so is protection.
- Bartenders and alcohol businesses ($35/month)*
- Handmade beauty product businesses ($104/month)
- Online sellers and ecommerce businesses ($116/month)
- Supply chain businesses ($154/month)
- Vitamin and supplement businesses ($236/month)
Event-Based Industries ($87/event)
Like a pop-up tent, these side hustlers only need coverage for short periods. It’s there when you need it for an event or a gig, and gone when you don’t!
- Artists and crafters ($49/event)
- DJs and live entertainers ($59/event)
- Event liquor liability ($275/event)
- Host liquor liability ($66/event)
- Food and beverage businesses ($49/event)
- Photographers and videographers ($59/event)
- Vendors and exhibitors ($49/event)
*Liquor liability prices start at $35.42/month or $550/year and vary by state.
How Much Does Insurance Cost for Small Businesses?
The cost of small business insurance is determined by factors like your coverage type, industry risk level, and revenue. These specific factors tell insurance companies (like us) how much risk they’re taking on by covering you.
Some risks you can control, some you can’t, but all of them affect your premiums:
- Location: State laws, local risks, and legal requirements can all impact cost
- Industry risk: Higher-risk jobs usually mean higher premiums
- Annual revenue: More revenue often means more exposure to potential claims
- Number of employees: More employees can increase liability
- Claims history: Frequent claims can raise your rates
- Coverage types and limits: More coverage or higher limits = higher cost
- Policy add-ons: Extras like additional insureds can add to your bill
- Liquor liability: For alcohol-serving businesses, your costs can vary by state and additional risks
The Big Idea: Insurance costs aren’t one-size-fits-all. They’re tailored to your business, like a custom playlist or your favorite pair of jeans.
How to Save Big on Small Business Insurance Costs
Lowering your insurance cost doesn’t have to mean cutting coverage! Small tweaks to how you buy, bundle, and manage your policy can make a real difference:
- Bundle coverage: Combine multiple policies and coverages with one provider to lower costs and simplify renewals
- Pay annually: Many insurance companies offer lower total premiums when you pay once a year instead of monthly installments
- Enforce safety measures: Implement safety protocols, risk management, and proper maintenance to reduce the chance of claims
- Assess risks: As your business grows or changes, make sure your coverage matches your current risks (and you’re not paying for any unnecessary extras)
- Compare quotes: Shopping around helps you see how different providers price your specific risk profile
Pro Tip: Small businesses often save the most by combining a few of these strategies — for example, bundling coverage, paying annually, and tightening up safety protocols.
Tips for Choosing the Right Insurance for Your Business
Choosing small business insurance can feel overwhelming, but it doesn’t have to. Here’s how to make sure you’re getting coverage that truly fits your needs (without paying for things you don’t):
- Know what coverage you need, and don’t choose a plan with more or less coverage
- Shop around with different providers
- Compare more than the price, look at coverage details too
- Look at customer reviews and claims processing information
- See if they understand your industry and needs
- Review terms and exclusions to see if you qualify
Get an Online Quote From Insurance Canopy
Your business is unique — your insurance should be too. With Insurance Canopy, you can:
- Apply online in minutes
- Get a custom quote within 24 hours
- Tailor your plan with a licensed agent
- Pay online through our secure checkout
- Download your Certificate of Insurance instantly
Whether you’re starting your first business or scaling an existing one, we make it easy to get covered quickly so you can get back to chasing your dreams.
FAQs About Small Business Insurance Costs
What Factors Influence the Cost of Small Business Insurance?
The factors that influence the cost of small business insurance include:
- Location
- Industry risk
- Revenue
- Employees
- Claims history
- Coverage type
- Policy add-ons
How Can I Reduce My Small Business Insurance Premium?
You can reduce your small business insurance premium by:
- Bundling policies
- Paying annually
- Enforcing safety measures
- Reviewing coverage
- Comparing quotes
With customizable coverage options and a team of licensed agents at the ready, we can help you adjust your policy as your business needs change.
What Is the Average Cost of Small Business Insurance?
The average cost of small business insurance is $21/month or $231/year. Costs vary widely by industry, coverage type, and individual business needs.
Do Small Businesses Need All Types of Insurance Coverage?
No, small businesses do not need all types of insurance coverage, but they should all have general liability coverage at a minimum.
Other common coverages to consider include:
Can Small Businesses Get Affordable Insurance Options?
Yes, small businesses can get affordable insurance options! Insurance Canopy tailors policies to niche small business industries and their budgets.
These plans are often designed for individuals, solopreneurs, and freelancers who only need coverage for their small-scale operations.
Chris Van Leeuwen | VP of Agency Development
Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.
Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.