How much does small business insurance cost?
Here's a ballpark to get started
We recommend that new businesses carry a Business Owner's Policy, workers' comp (if you have employees) and commercial auto (if you use vehicles on the job).
For a low-risk business with a few employees and 1-2 business vehicles, the combined cost of these coverages can start around $629 a month.
Your costs vary on your type of business, geographical location, number of employees and other specific details.
What does a business owner's policy (BOP) cost?
A Business Owner's Policy (BOP) typically costs between $240-$620 a month depending on your type of business, geographical location and other factors.
A Business Owner's Policy packages your three most important coverages to save you money:
- General liability covers injuries and damages caused by your business
- Property helps replace or repair damaged or stolen business property
- Business Interruption compensates lost income from temporary closure for covered property damage
What does worker's compensation insurance cost?
Worker's comp typically costs between $77-$164 a month depending on your number of employees, type of industry, previous claim history and other factors.
Almost all states require you to carry this important coverage if you have employees.
- Covers accidents and injuries on the job
- Provides lost wages and medical benefits
- Shields you from most employee lawsuits
What does commercial auto insurance cost?
Commercial auto typically costs between $310-$370 a month depending on your number and types of vehicles.
All states require you to carry commercial auto coverage if your company uses vehicles on the job.
Cover damages your vehicles cause to other people or their property
- Cover damages caused by employees who drive their own cars on the job
- Can also cover damages to your own vehicles (optional)
What other coverages might I need?
Depending on your business, you may also want to carry:
- Professional liability covers legal costs if you perform a professional service and are sued by clients who are unhappy with your work
- Commercial umbrella provides extra coverage when other policies reach their limits so you can safeguard all your valuable business assets
- Cyber insurance covers the cost of rebuilding your system and handling legal and regulatory fees in the event of a cyber breach
FAQs: Business insurance costs
What's the typical cost of small business insurance?
What business insurance is recommended for a new or growing business?
What does a Business Owner's Policy cost?
A BUSINESS OWNER'S POLICY (BOP) typically costs between $240-$620 a month depending on your business type, location and other factors. A BOP saves you money by combining:
- General liability covers injuries and damages caused by your business
- Property helps replace or repair damaged or stolen business property
- Business Interruption compensates lost income from temporary closure for covered property damage
What does commercial auto insurance cost?
COMMERCIAL AUTO typically costs between $310-$370 a month depending on your number and types of vehicles.
- Cover damages caused by employees who drive their own cars on the job
- Can also cover damages to your own vehicles (optional)
What factors affect the cost of my insurance?
Every business is different. The cost of your insurance depends on multiple factors that include:
- Your type of industry (and the level of risk it has)
- Geographical location (weather conditions, crime rate etc.)
- Business size (higher revenue + more employees = higher risk)
- Claims history (frequent claims suggest higher risk)
- Size of deductibles (what are you willing to pay out of pocket?)
- And more (a Mylo agent can give you the details).
What does worker's compensation insurance cost?
WORKER'S COMP typically costs between $77-$164 a month depending on your number of employees, type of industry, previous claim history and other factors.
- Covers accidents and injuries on the job
- Provides lost wages and medical benefits
- Shields you from most employee lawsuits