Compare policy types, estimate real costs, and understand what business insurance actually protects — before a claim puts your business at risk.
$500 – $3,000
General liability, small business (2026)
Slip & Fall
#1 general liability claim type
8 Core
GL through cyber liability
2-in-1
GL + commercial property bundled
Overview
A contract where you pay a monthly premium to your insurer, and in return they cover a portion of your medical costs — from routine checkups to major hospital stays. Three concepts drive everything:
A monthly or annual cost that keeps your policy active. Premiums vary by industry, business size, revenue, and the type of coverage selected.
Customer is injured on your premises, a client sues over professional advice, a fire damages your equipment your insurer steps in to cover the financial cost up to your policy limit.
Your insurer pays legal defence costs, settlements, property repairs, or employee injury claims — so a single incident does not threaten your business's survival.
Coverage
No single business insurance policy covers everything — most businesses need a combination of policy types. Here are the eight core coverage categories most businesses rely on.
Covers third-party bodily injury, property damage, and personal injury claims. If a customer slips in your store or you accidentally damage a client's property — GL pays legal and settlement costs.
Covers your business's physical assets — building, equipment, inventory, and furniture — against fire, theft, vandalism, and certain weather events.
Errors and Omissions insurance covers claims that your professional services caused financial harm to a client — negligence, mistakes, or failure to deliver promised results.
Covers medical expenses and lost wages for employees injured on the job. Required by law in most states for businesses with employees.
Covers vehicles used for business purposes — company cars, delivery vans, or vehicles driven by employees for work — for liability and physical damage.
Covers costs from data breaches, ransomware attacks, and cyber incidents — including notification costs, legal fees, and regulatory fines.
Business Insurance Plan Types
Business insurance is not one policy — it is a combination of coverages built around your specific business type, size, and risk profile. Here are the four types most small businesses need to understand first.
Third-party injury and property damage
BOP — GL + Commercial Property bundled
Errors and Omissions — service-based businesses
Employee injury and illness coverage
| Policy Type | Covers | Required? | Avg. Annual Cost |
|---|---|---|---|
| General Liability | Customer injury, property damage | By landlord/contract | $500–$1,500 |
| BOP | GL + commercial property | Recommended | $800–$2,500 |
| Professional Liability / E&O | Client financial harm from your services | By profession | $500–$3,000 |
| Workers Compensation | Employee injury and illness | By law (most states) | $500–$5,000 |
| Commercial Auto | Business vehicle accidents | If using vehicles for work | $1,200–$2,400 |
| Cyber Liability | Data breaches, ransomware | Recommended if holding customer data | $800–$2,000 |
Cost Breakdown
Business insurance costs vary more than any other insurance type because premiums are calculated based on your industry, annual revenue, number of employees, location, and claims history. The figures below reflect typical costs for a small business (under 10 employees, under $500,000 annual revenue) across common industries.
Source: 2026 industry premium averages based on NAIC commercial lines data and major US insurer rate filings.
Estimates shown for small businesses under 10 employees and $500,000 annual revenue. Actual premiums depend on your specific industry, claims history, location, payroll, and selected coverage limits. High-risk industries and larger businesses will see significantly higher premiums.
INTERACTIVE TOOL
Decision Guide
The right coverage depends on your business type, whether you have employees, and the risks specific to your industry.
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FAQ's
Clear answers to the questions most business owners ask before buying coverage.
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