How much does business insurance cost?

A small business insurance policy doesn’t need to be expensive. The exact price you’ll pay depends on a number of factors, including:

• Your business operations (high-risk vs. low-risk operations).
• What type of coverage you buy.
• The insurance provider you choose.
• How much you’re willing to pay out of pocket after an accident or mistake.

What is the average cost of business insurance for a small business?

Small business owners’ insurance is often made up of different policies that provide protection for different risks.

You might decide to buy a combination of general liability coverage, commercial property insurance and workers’ compensation insurance to protect your business and meet state or local requirements.

If you buy more types of coverage, you could have higher insurance costs, also known as higher premiums.

Your coverage limits (or policy limits) could also affect your cost, including:

• The per claim limit — The maximum amount for each insurance claim.
• The aggregate limit — Your maximum annual payout for a policy.

Finally, your deductible (the amount you pay before your insurance policy kicks in) can also be a factor in how much you pay.

These are the minimum monthly premium costs† and the average cost of insurance for the majority of NEXT customers:

Get an instant quote in about 10 minutes to see your cost for small business insurance.

What’s the cost of small business insurance for your industry?

Learn what your business would pay for business insurance coverage.

You can get fast, tailored and affordable business insurance options in minutes when you start a free insurance quote with NEXT.

We’ll ask basic questions about your business needs and operations and create a customized insurance quote in minutes.

Once you buy your policy, you can:

• Adjust the limits or choose additional recommended coverage at any time.
• Get instant access to your certificate of insurance (proof of insurance) to download or share.
• Manage your policy 24/7 via web or mobile app.

Insurance through NEXT can be secured without an insurance agent. But if you have questions, our licensed, U.S.-based insurance advisors are ready to help.

What factors impact the cost of your business insurance premium?

Several factors impact the cost of business insurance premiums. These might include:

• Type of business
• Industry
• Business structure (sole proprietor, LLCs, corporations)
• Business location
• Size
• Revenue or business income
• Payroll
• Claims history
• Coverage limits and deductibles chosen
• Level of risk in business operations and activities
• Number of employees
• Value of assets being insured
• Type of vehicle you drive
• Driving record

A lot of factors, right? Insurance companies also consider external factors like economic conditions and market trends to determine the cost of annual premiums.

How can you save money on business insurance?

These four tips can help reduce your small business insurance cost:

1. Bundle more than one policy 

Small business insurance comes in many forms. You can save up to 10% if you purchase more than one type of business insurance with NEXT. 

Many businesses purchase a combination of these types of coverage for protection from different risks:

• General liability coverage to help cover costs if you or an employee accidentally damages someone else’s property, or medical expenses if someone other than an employee gets hurt as a result of your work (also known as bodily injury).
• Commercial property insurance to help protect the equipment, inventory and physical property you use for your business. It can also include business income insurance.
• BOP insurance (business owner’s policy), which combines general liability and commercial property coverage into one, often more cost-effective, policy.
• Workers’ comp insurance, required in most states for employers or if you have employees, to help cover workplace illness or injury.
• Professional liability coverage, also called errors and omissions (E&O) insurance, in case you make a professional mistake.
• Commercial auto insurance for coverage over your business driving.

2. Lower your risk level

A safety and training plan can help prevent accidents — and accidents might increase your insurance premium. What’s the best way to lower your risk?

• Make sure you and your employees are properly trained.
• Focus on work that you know how to do.
• Don’t do jobs you’re not trained to do.
• Make sure you have coverage for the work that you do.
• Keep your business or job site secure.
• Keep your business and work area clean so no one trips on cords, furniture, equipment or tools.
• Take steps to mitigate property damage and injuries from rain, wind, snow and inclement weather.

3. Learn from your previous claims history

Analyze your previous claims history and figure out what you could have done to avoid those risks. 

4. Pick the right limits and deductible 

Lower limits will save you money, but you’ll have a higher risk of financial loss if you don’t have enough business insurance coverage. 

If you choose a higher deductible, you could pay less for the policy.