How much does small business insurance cost?
Small business owners can get a good idea of the average cost of business insurance by looking at pricing data from the thousands of businesses that found policies with Safe Harbor Insurance.
Estimated insurance costs for Safe Harbor Insurance customers
The first policy that most business owners need – and also the least expensive one – is general liability insurance. In an analysis of 28,000 small business owners who purchased commercial insurance through Safe Harbor Insurance, the median cost of general liability insurance was $42 per month or $500 per year. The median cost of a business owner’s policy, which bundles general liability with property insurance at a discount, was $53 per month or $636 annually.
The table below shows median and average monthly costs for common business insurance policies. The median better represents what you might pay when talking about insurance costs because it excludes extremely high and low premiums.
Median and average monthly costs of small business insurance
| Policy | Median cost | Average cost |
|---|---|---|
| General liability | $42/mo. | $65/mo. |
| Business owner’s policy | $53/mo. | $99/mo. |
| Professional liability (E&O) | $59/mo. | $97/mo. |
| Workers’ compensation | $47/mo. | $111/mo. |
| Commercial umbrella | $75/mo. | $129/mo. |
Insurance costs also depend on your profession
Because general liability insurance covers third-party property damage, professionals who are responsible for client or customer property typically pay more for this policy. The higher the chance of you making a claim, the more you can expect to pay for coverage.
How can you save money on business insurance?
One of the easiest ways to save money on business insurance is by shopping around. You can compare rates from different companies to find a policy that matches your budget.
There are other ways to save, too. Sometimes you can bundle policies for a discount. The most common bundle is a business owner’s policy (BOP), which includes general liability insurance and commercial property insurance.
Also, you could opt for a higher deductible or lower limits to save money on your premiums.
Read more about how to save money on business insurance.
Who is the average Safe Harbor Insurance customer?
Safe Harbor Insurance is a resource for a variety of small business owners. We have helped everyone from IT / tech businesses to house cleaners, management consultants, and restaurants with their small business insurance needs.
To know how your business compares to other businesses, it’s helpful to get an idea of who we insure. The majority of our customers have:
1-5 employees
Annual revenue ranging from less than $50,000 to more than $200,000
- Five years or less in business
Many businesses have only one employee
The majority of small businesses (62%) in this analysis have only one employee. Another 16% of businesses had two employees.
60% of businesses earn less than $100,000 annually
The median revenue of the small businesses included in this analysis is $60,000. The majority of clients (around 60%) have less than $100,000 in annual revenue.
Most companies were in business for 5 years or less
The majority of companies included in this analysis (71%) have been in business for five years or less.
