Business Insurance

What business insurance actually costs

Business insurance is priced on risk. A small consultancy and a roofing contractor pay very different premiums for the same "general liability" label because their odds of a claim differ. Most policies are priced annually, and the number depends on a handful of factors you can weigh when you shop.

The main cost drivers

• Industry & risk class — codes range from near-zero (office work) to double digits per $100 of payroll (construction, manufacturing).
• Revenue and payroll — higher sales and more staff usually mean higher exposure and higher premiums.
• Coverage limits — a $1M per-occurrence limit costs less than $2M.
• Claims history — past claims raise future rates.
• Location — state rules and local risk (flood, litigation environment) shift pricing.

Typical starting points: general liability runs about $300–$1,000/year for a small low-risk business; workers' compensation is payroll × a class rate (roughly 0.5% for office staff up to ~10% for high-risk trades); cyber insurance scales with revenue and the data you hold.

Frequently asked questions

How much does small business insurance cost?

General liability costs $300–$1,000/year for small businesses. The business insurance calculator estimates premiums based on business type, revenue, payroll and coverage needs.

What types of business insurance do I need?

Most small businesses need general liability, professional liability (E&O), workers comp (if employees), and property insurance. The business liability calculator estimates your costs.

How is workers compensation insurance priced?

Workers comp = payroll × classification rate (0.2–20% depending on risk). A construction worker may cost 10% of payroll, while an office worker costs about 0.5%. The calculator estimates this.