$45/moMedian general liability premium
$83/moMedian business owner’s policy (BOP)
$10.22MAverage U.S. data breach cost (2025)
5States requiring employee disability insurance
Key takeaway: Most small businesses need general liability insurance, and many save money by bundling it with property cover in a business owner’s policy (BOP). If you have employees, workers’ compensation is required in almost every state. Professional liability, commercial auto and cyber insurance depend on what you do. Median premiums for small businesses start at about $45 a month for general liability.
How we put this guide together: We used Insureon’s 2026 cost data from 100,000 small business customers, U.S. Small Business Administration guidance, insurer disclosures, NCCI workers’ compensation data and IBM’s 2025 data breach study. Costs and rules vary by state, industry and insurer; figures were checked in October 2026. This is general information; a licensed agent can confirm what your business needs. See our advertiser disclosure.

Compare business insurance quotes

Pick two or more companies to see rates where you live. Free, no obligation.

Sponsored listings. BeSecuredNow may be paid when you click a listing; it doesn’t change your price.

The main types of business insurance

PolicyWhat it coversWho needs it
General liabilityInjuries to customers, damage to others’ property, advertising injuryAlmost every business
Business owner’s policy (BOP)General liability plus commercial property and business incomeSmall businesses with property or premises
Professional liability (E&O)Claims of mistakes, negligence or bad adviceConsultants, accountants, IT, healthcare, other service firms
Workers’ compensationEmployees’ work injuries and lost wagesBusinesses with employees (required in most states)
Commercial autoVehicles used for businessBusinesses that own or drive vehicles for work
Cyber insuranceData breaches, ransomware, recovery costsBusinesses holding customer data or relying on systems

Our guide to small business insurance types covers these and other policies such as umbrella, product liability and employment practices.

What’s required by law

  • Workers’ compensation is required for businesses with employees in almost every state; Texas is the main exception for most private employers. See our workers’ comp guide.
  • Unemployment insurance taxes apply to employers.
  • Disability insurance for employees is required only in California, Hawaii, New Jersey, New York and Rhode Island.
  • Commercial auto liability is required for business-owned vehicles.
  • Professional liability is required for some licensed professions, and contracts or leases often require general liability.

What it costs

PolicyMedian monthly costAbout per year
General liability$45$538
Workers’ compensation$54$648
Business owner’s policy (BOP)$83$990
Professional liability (E&O)$88$1,056
Cyber insurance$129$1,548
Commercial auto$245$2,940

Source: Insureon, median premiums paid by its small business customers (February 2026). Most of these customers had one to four employees and revenue under $100,000.

Your price depends on your industry, location, revenue, number of employees, claims history and the limits you choose. See how much small business insurance costs.

How to buy

  1. List your risks: customers on site, property and equipment, vehicles, employees, data and advice you give.
  2. Check contracts and leases for required policies and limits.
  3. Compare quotes from online insurers and an independent agent; see our insurer comparison.
  4. Bundle where possible, for example in a BOP.
  5. Review every year as your business grows.

The SBA notes that forming an LLC or corporation limits personal liability but doesn’t protect the business itself; insurance fills that gap.

All Business insurance guides

Best Small Business Insurance Companies for 2026: How the Main Options CompareSmall business insurers compared on products, buying options and financial strength.Types of Small Business Insurance: What Each Policy Covers and Who Needs ItEvery common policy type explained, and which businesses need each.How Much Does Small Business Insurance Cost? 2026 Prices and Price FactorsMedian 2026 costs by policy and what drives your premium.General Liability Insurance: What It Covers, What It Costs and Who Needs ItWhat general liability covers, limits, exclusions and costs.Business Owner’s Policy (BOP): What It Covers and Whether It’s Right for YouHow a BOP bundles liability, property and income cover, and who qualifies.Professional Liability Insurance (E&O): What It Covers and Who Needs ItE&O cover for service businesses: claims-made policies and tail cover.Workers’ Compensation Insurance: Requirements, Coverage and Costs for Small BusinessesState requirements, costs and how premiums are calculated.Commercial Auto Insurance: When You Need It and What It CostsWhen personal auto isn’t enough, costs and hired and non-owned auto.Cyber Insurance for Small Businesses: What It Covers and How to QualifyBreach costs, what cyber policies cover and how to qualify.Business Insurance for Startups and New LLCs: What to Buy FirstWhat a new business or LLC needs first, and how to keep costs down.Insurance for the Self-Employed and Home-Based BusinessesInsurance for freelancers and home-based businesses.

Frequently asked questions

What insurance does a small business need?

Most need general liability, often in a BOP. Add workers’ comp if you have employees, professional liability if you give advice or services, commercial auto for work vehicles and cyber if you hold data.

Is business insurance required by law?

Workers’ comp is required for employers in almost every state, and commercial auto liability for business vehicles. Other policies are usually required by contracts, leases or licenses rather than law.

How much is small business insurance?

Median premiums are about $45 a month for general liability and $83 for a BOP, according to Insureon’s 2026 data.

Does an LLC protect me without insurance?

An LLC limits personal liability in many cases, but the business itself can still be sued and lose its assets. Insurance protects the business.

Does homeowners insurance cover a home business?

Usually only up to about $2,500 of business property and not business liability. Most home businesses need an endorsement or business policy.

Sources

Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.