What Is Small Business Insurance?
Small business insurance is a broad term for the policies that protect your company from financial losses caused by lawsuits, property damage, employee injuries, cyberattacks, and other risks. The right coverage depends on your industry, size, and specific exposures.
Most small businesses need at least general liability insurance as a foundation. From there, you may add professional liability, workers' comp, commercial property, cyber, or bundle everything into a Business Owner's Policy (BOP).
What Types of Insurance Do Small Businesses Need?
| Coverage | What It Protects | Typical Cost |
|---|---|---|
| General Liability | Third-party injuries, property damage, advertising claims | $30–$75/mo |
| Business Owner's Policy (BOP) | Bundles GL + property + business income coverage | $50–$150/mo |
| Workers' Compensation | Employee injuries and illnesses on the job | $40–$200/mo |
| Professional Liability (E&O) | Errors, negligence, and malpractice claims | $50–$150/mo |
| Cyber Liability | Data breaches, ransomware, and privacy violations | $25–$100/mo |
| Commercial Auto | Business vehicles and driver liability | $100–$300/mo |
How Much Does Small Business Insurance Cost?
Small business insurance costs vary widely based on industry, location, revenue, and coverage needs:
- Lowest risk (home-based consulting, freelancers): $30–$60/mo for basic GL
- Moderate risk (retail, restaurants, small offices): $75–$200/mo for a BOP
- Higher risk (construction, manufacturing, healthcare): $200–$500+/mo for multi-policy packages
The best way to find competitive rates is to compare quotes from multiple carriers. At Insura, we shop your coverage across 5+ A-rated carriers to find the best combination of price and protection.
How to Choose the Right Insurance for Your Business
- Identify your risks — What could go wrong? Customer injuries, professional mistakes, employee claims, cyber threats?
- Check requirements — Your state, landlord, clients, and lenders may require specific coverages
- Compare carriers — Don't go with the first quote. Rates can vary 40%+ between carriers for identical coverage
- Bundle when possible — A BOP often saves 10–15% vs. buying GL and property insurance separately
- Review annually — As your business grows, your coverage needs change
