How Much Does Insurance Agent Business Insurance Cost? 2025 Rates

U.S. insurance agents can expect to pay between $360 and $480 annually for business insurance, averaging $30 to $40 per month. The primary cost drivers are your location, coverage limits, business size, number of employees, experience and qualification.

How Much Does Insurance Agent Business Insurance Cost?

The average insurance agent in the U.S. pays between $360 and $480 per year for business insurance. That breaks down to roughly $30 to $40 per month. However, this is only an estimate, your actual business insurance costs can be higher or lower depending on your business details. 

If you’re an insurance agent, you know how important it is to have the right protection for your own business. Even though you help others manage risks, your business is also subject to issues like data breaches, employee injury, or client lawsuits. Several variables impact the cost of insurance agent business. 

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Business size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

By learning what affects insurance costs, you can choose the right coverage and budget properly to keep your business protected. 

Average Insurance Agent Business Insurance Costs For Coverage Types

Running an insurance agency comes with its own risks, from legal claims to office accidents and property damage. Understanding the average costs for different types of insurance for an insurance agency can help you plan your budget and choose the right plan. 

Here’s a closer look at the major coverages most insurance agents need:

• General liability insurance: $30 per month
• Business owner’s policy: $50 per month
• Workers’ compensation insurance: $42 per month
• Commercial auto insurance: $155 per month
• Errors and omissions insurance: $61 per month

General Liability Insurance

The average cost of general liability insurance for an insurance agent is about $30 per month.

General liability insurance protects your insurance agency from claims if someone is injured or their property is damaged while on your premises. For example, if a client visits your office and trips over a loose rug, this policy would help cover their medical bills and any legal fees if they sue.

General liability costs are impacted by several factors, such as location, size of the insurance agency business, number of clients and visitors, and claims history. 

Policy limits: $1 million per occurrence and $2 million aggregate.

Note: According to industry data, slip and fall accidents are one of the most common claims for office-based businesses. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for insurance agencies of varying sizes, factoring in typical coverage limits, business operations, and regional risk profiles. Actual premiums will vary depending on agency size, location, claims history, and specific underwriting criteria.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $50 per month for an insurance agent.

A BOP is a convenient insurance package that combines several coverages into one policy. It’s created to help small businesses, like insurance agencies, protect themselves from common risks. 

For example, if a fire damages your office and computers, the BOP would help pay for repairs and replacements.

A BOP is simple and often cheaper than buying every insurance separately. The cost depends on factors like the value of your office property, the risk level of your location, number of employees, and any optional add-ons like business interruption coverage.

Policy limits: $1 million per occurrence and $2 million aggregate

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average Business Owner’s Policy (BOP) premiums for insurance agencies of varying sizes, combining general liability and commercial property coverage. Actual premiums will vary depending on agency size, location, coverage limits, property value, and risk profile

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for an insurance agent is around $42 per month.

Workers’ comp insurance helps protect your employees and your insurance agency if someone gets sick or hurt because of their job. For example, if a staff member slips while carrying office files and injures their back, workers’ comp would help pay for their treatment and part of their lost income while they recover.

States decide the rules for policy limits, but workers compensation usually pays for medical expenses and a portion of lost wages. 

Workers compensation costs are impacted by different factors such as the type of work you do, claims history, payroll size, and the number of employees. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for small to mid-sized insurance agencies, factoring in industry classification codes, payroll size, and state-specific base rates. Actual premiums will vary depending on your agency’s size, claims history, payroll, and insurer underwriting criteria.

Commercial Auto Insurance

The average cost of commercial auto insurance for an insurance agent is about $155 per month.

Commercial auto insurance protects the vehicles your insurance agency uses for business purposes.  For example, if an agent gets into an accident while driving a company car to meet a client, this policy would help pay for vehicle repairs and any third-party claims.

There are a number of factors that impact commercial auto insurance costs for an insurance agency. These include driver records, coverage limits, type and number of vehicles.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates reflect blended averages for small and large insurance agencies operating standard business vehicles such as sedans, SUVs, and light-duty vans. Figures incorporate regional pricing trends, liability limits, and typical usage patterns. Actual premiums will vary based on fleet size, driving history, coverage levels, and state-specific underwriting factors

Errors And Omissions Insurance

The average cost of errors and omissions insurance for an insurance agent is about $61 per month.

This insurance protects your agency if a client claims they lost money because of a mistake or oversight in the services you provided. 

For example, if you accidentally forget to include important coverage in a client’s policy and they experience a major loss that isn’t covered, they could sue you. E&O insurance would help cover your legal defense costs, settlements, or judgments.

Errors and omissions insurance costs are impacted by several factors such as the size of the agency, claims history, revenue, and coverage limits. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for both small and large insurance agencies, factoring in typical coverage limits and risk profiles. Actual premiums will vary depending on agency size, claims history, location, and policy features

Insurance Agent Business Insurance Costs By Provider

Insurance Agent business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for both small and large insurance agencies, factoring in general liability, E&O, and business owner’s policies. Actual premiums will vary depending on agency size, location, coverage limits, claims history, and selected endorsements.

What Factors Impact Your Insurance Agent Business Insurance Costs?

Several things can affect how much you pay for insurance as an insurance agent. Knowing these factors can help you understand your rates and find ways to save money on coverage. 

Coverage Needs Of The Agency

The type and amount of insurance your agency needs will impact your insurance costs. For example, every policy has different rates. Agencies that deal with more clients, sensitive data, or large policies may need higher coverage limits, which may increase premiums. 

Size Of Your Agency

The number of agents, employees, and the volume of clients your agency serves can impact insurance rates. Big agencies generally pay more as they face greater exposure to claims. 

Location Of Your Agency

Where your insurance agency is located also matters. Locations with higher legal risks, or strict state insurance regulations can lead to higher premiums. 

Experience And Qualifications

If you have many years of experience and proper licenses or certifications, insurers may consider you lower risk, which can lower your cost. New agents might pay more due to less experience.

How To Lower Your Insurance Agent Business Insurance Costs

Running an insurance agency comes with risks, but paying extra for coverage doesn’t have to be one of them. There are simple ways to lower your business insurance costs while keeping your agency protected. 

1. Policy Bundles

The simplest way to cut down on your insurance cost is by bundling multiple policies. For an insurance agency, you can bundle general liability, commercial auto, and workers compensation from the same insurance provider to get the best rates. 

2. Adjust Deductible

Adjusting your deductible is an easy way to lower your insurance cost as an insurance agent. By selecting a higher deductible, you agree to pay more if a claim happens, which will make your yearly or monthly premium lower. 

3. Compare Rates From Multiple Insurers

It’s best to explore your options and get quotes from 2 or 3 insurance companies and compare quotes to get the best deal for your insurance agent business.

4. Implementing Security Measures

Implementing strong cyber-security, proper employee training, and careful record keeping strategies can all be helpful in lowering your business insurance costs.