Compare business insurance quotes
Pick two or more companies to see rates where you live. Free, no obligation.
The main types of business insurance
| Policy | What it covers | Who needs it |
|---|---|---|
| General liability | Injuries to customers, damage to others’ property, advertising injury | Almost every business |
| Business owner’s policy (BOP) | General liability plus commercial property and business income | Small businesses with property or premises |
| Professional liability (E&O) | Claims of mistakes, negligence or bad advice | Consultants, accountants, IT, healthcare, other service firms |
| Workers’ compensation | Employees’ work injuries and lost wages | Businesses with employees (required in most states) |
| Commercial auto | Vehicles used for business | Businesses that own or drive vehicles for work |
| Cyber insurance | Data breaches, ransomware, recovery costs | Businesses 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
| Policy | Median monthly cost | About 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
- List your risks: customers on site, property and equipment, vehicles, employees, data and advice you give.
- Check contracts and leases for required policies and limits.
- Compare quotes from online insurers and an independent agent; see our insurer comparison.
- Bundle where possible, for example in a BOP.
- 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
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
- Insureon – Small business insurance costs (Feb 2026)
- Insureon – Commercial auto insurance cost (Mar 2026)
- U.S. Small Business Administration – Get business insurance
- Patriot Software – State disability insurance (Aug 2026)
- Pie Insurance – Workers’ comp in Texas
- Insurance Journal – NCCI State of the Line 2026
- CyberScoop – IBM Cost of a Data Breach 2025
- Maine Bureau of Insurance – Insuring your home business
- NEXT Insurance – AM Best Superior rating (Sept 2025)
- Business Wire – The Hartford bolsters small business cyber insurance (Sept 2025)
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.