Compare Business Insurance Rates In 2025
Best Small Business Insurance Policies
General liability insurance is one of the most essential coverages for any small business. It protects against third-party claims involving bodily injury, property damage, and even advertising injuries like slander or copyright infringement. Without this coverage, a single lawsuit could financially devastate a small business.
Workers compensation insurance covers medical expenses, lost wages, and rehabilitation costs if an employee gets hurt or sick on the job. It also shields employers from most employee lawsuits related to workplace injuries.
This coverage pays for accident-related damages to your vehicles and covers third-party injuries or property damage you might cause while driving for business.
A Business Owner’s Policy (BOP) bundles several core coverages — typically general liability, commercial property insurance, and business interruption insurance — into one convenient package at a lower price than buying each separately. It’s ideal for small to mid-sized businesses looking for broad protection.
Professional liability insurance (also called errors and omissions insurance for some professions) covers lawsuits related to professional mistakes, missed deadlines, or poor advice that cause clients to lose money. Unlike general liability, which covers physical injuries, this protects you from financial harm claims.
Cyber insurance helps pay for costs associated with data breaches, ransomware attacks, phishing scams, and stolen customer information. Coverage often includes legal fees, notification costs, public relations help, and even ransom payments.
Commercial umbrella insurance provides extra liability coverage on top of your existing policies like general liability, commercial auto, and workers' compensation. It kicks in when a claim exceeds the limits of your primary insurance, helping protect your business from catastrophic losses.
Commercial property insurance protects the building your business owns or leases, along with inventory, equipment, and furnishings. It covers damage caused by events like fire, storms, theft, and vandalism.
What Is Small Business Insurance?
In short, small business insurance helps reduce the financial impact of unexpected events, giving business owners peace of mind and the ability to operate with confidence. It’s often required by landlords, clients, or state law, depending on the industry and business type.
Small business insurance is a collection of insurance policies designed to protect small business owners from the financial risks that come with running a business. These risks can include property damage, lawsuits, employee injuries, theft, data breaches, and more.
Rather than being a single policy, small business insurance is typically a customizable package made up of different types of coverage based on the nature of the business.
Why Do Small Businesses Need Insurance?
Running a business always carries risks. Business insurance protects owners from the financial fallout of accidents, lawsuits, and property damage. A single customer injury or employee accident could cripple an uninsured business.
Extreme weather, including hurricanes and flooding, creates serious threats. Many small businesses would struggle to recover from damage caused by adverse weather without the right coverage. Standard property insurance often excludes flood damage, making separate flood policies necessary.
Additionally, most states require businesses to carry workers compensation insurance if they have employees and commercial auto insurance if they have company-owned vehicles.
Small businesses face a range of liability risks. Restaurants, hotels, and retail shops face constant exposure to customer injury claims.
Business Insurance Resources
How To Get Insurance For Your Small Business
Getting the right insurance for your small business is easier than you might think.
Insuranceopedia makes the process simple by connecting you with top-rated insurance carriers who specialize in your industry. All you need to do is provide a few basic details about your business — like your location, profession, and number of employees — and we’ll match you with the best options.
Whether you need general liability, workers’ compensation, or a full Business Owner’s Policy, we help you find competitive quotes quickly, so you can focus on running and growing your business.
Professions That We Insure
Nearly every profession benefits from having business insurance, whether it’s legally required or simply smart protection. No matter how big or small your business is, having coverage can shield you from financial risks and unexpected setbacks. Some of the top professions that typically need insurance include:
- Contractors and construction companies
- Restaurants and cafes
- Retail stores and boutiques
- Medical practices and clinics
- Real estate agents and brokers
- Accountants and financial advisors
- IT consultants and tech firms
- Marketing and advertising agencies
- Cleaning and janitorial services
- Hospitality businesses, like hotels and resorts
Having the right insurance isn’t just for high-risk industries — it’s essential protection for almost every small business. No matter your field, proper coverage can help you recover faster from accidents, lawsuits, and unexpected disruptions.
What Factors Affect Business Insurance Costs?
Small business insurance costs can swing widely from one company to the next. Several key factors influence how much you’ll pay, depending on the nature and size of your business.
- Industry risk: Higher-risk fields like construction pay more than offices.
- Coverage limits and deductibles: Higher limits cost more, higher deductibles cost less.
- Annual revenue: Higher revenue often raises your liability insurance premiums.
- Business location: Coastal areas often cost more due to hurricane exposure.
- Years in business: New businesses sometimes pay more due to inexperience.
- Payroll size: Workers’ compensation rates are directly tied to total payroll.
- Business location: Coastal areas often cost more due to hurricane exposure.
- Coverage types selected: More policies add to the total insurance bill.
- Number of employees: More employees usually mean higher workers’ comp costs.
- Claims history: Businesses with past claims often face steeper premiums.
- Safety programs: Companies with strong safety measures can sometimes get discounts.
- Property value: Larger, more expensive properties cost more to insure.
- Vehicle use: Heavy vehicle usage raises commercial auto insurance costs.
How Much Does Business Insurance Cost by Profession?
Business insurance premiums can vary significantly depending on your profession, the risks involved, and the coverage you need. To help you find the right protection and budget effectively, we’ve broken down the average costs for different types of small businesses. Find your industry below to see a full breakdown of insurance prices:
- Food Truck – Operating a food truck comes with risks like fire, theft, and liability. The average food truck business insurance policy costs $3,000-$5,000 per year. Learn more on our Food Truck Business Insurance Costs page.
- Bakery – Bakeries deal with hot equipment, foot traffic, and food liability. Most bakery owners pay around $900 per year for business insurance. See details on our Bakery Business Insurance Cost page.
- Tree Service & Arborist – Tree work is hazardous, requiring strong liability and equipment coverage. Tree service insurance averages $2,500 per year. Check out our Tree Service & Arborist Insurance Costs guide.
- Catering – Caterers face mobile operations, food safety, and property damage risks. The typical catering business pays about $x/year for coverage. Read more on our Catering Business Insurance Costs page.
- Plumbing – Plumbers need coverage for tools, injuries, and property damage. Business insurance for plumbers costs approximately $2,000 per year. Visit our Plumbing Business Insurance Cost page.
- General Contractor – Contractors need robust insurance to cover projects, subcontractors, and legal risks. Expect to pay between $3,000-£10,000 per year. View our General Contractor Insurance Cost guide.
- Handyman – Handymen benefit from affordable liability and equipment coverage. Typical premiums are around $1,000 per year. See our Handyman Insurance Cost page for details.
- Chiropractor – Professional liability is crucial for chiropractors. Most pay roughly $720 per year for business insurance. Learn more on our Chiropractor Business Insurance Cost page.
- Coffee Shop & Cafe – Coffee shops face risks like hot spills, customer injuries, and theft. Business insurance typically costs about $780 per year. Explore our Coffee Shop & Cafe Insurance Costs article.
- Electrician – Electricians need coverage for jobsite injury and property damage. Most pay around $840 per year for business insurance. Visit our Electrician Business Insurance Cost page.
- Pharmacy – Pharmacies require strong liability coverage and protection for inventory. Expect insurance to cost roughly $2,000 per year.
- Lawn Care – Lawn care businesses insure trucks, tools, and employee injuries. The average annual premium is $840 per year. Learn more on our Lawn Care Insurance Cost page.
- Florist – Florists need basic liability and inventory protection. Most policies cost about $900 per year. Visit our Florist Business Insurance Cost page.
- Auto Dealer – Auto dealers face risks like test drive accidents and fraud claims. Typical coverage runs about $600 per year. See our Auto Dealer Insurance Cost guide.
- Carpenter – Carpenters need jobsite liability, tool coverage, and workers’ comp. Business insurance averages $960 per year. Explore our Carpenter Insurance Cost page.
- Photographer – Photographers insure expensive gear, plus liability for shoots and venues. Most policies cost about $600/year.
- Pressure Washing – Power washing equipment can cause damage — insurance helps cover risks. Coverage usually runs $1,400/year.
- Architect – Architects often carry professional liability and general liability policies. Expect premiums to average $2,000/year.
- Tax Preparer – Tax professionals need E&O protection for filing errors and client disputes. Coverage typically costs around $1,000/year.
- Hair Salon – Salons face injury, liability, and property loss risks. Insurance usually costs about $950/year.
- Snow Plowing – Snow removal businesses are exposed to winter driving and property risks. Insurance averages $1,200/year.
- Video & Film Production – Filmmakers insure equipment, liability, and locations. Typical costs are around $1,600/year.
- Sandwich Shop – Quick-serve restaurants face food safety and slip-and-fall risks. Most pay roughly $1,400/year for coverage.
- Landscape Architect – Design firms need professional and general liability insurance. Annual premiums average $1,800/year.
- Acupuncture – Acupuncturists need malpractice and general liability protection. Business insurance usually costs about $1,500/year.
- Bar – Bars face liquor liability, fights, and premises risks. Insurance typically runs $3,000/year annually.
- Excavation – Heavy equipment and underground hazards drive up excavation premiums. Most pay around $3,200/year for insurance.
- Painters – Painting contractors need jobsite liability and equipment coverage. Business insurance costs about $1,200/year on average.
