Updated 16 May 2026
Average Business Insurance Cost 2026: US Benchmarks by Policy, Industry, and Size
The benchmark numbers for 2026 US small business insurance. Median monthly premiums by coverage, industry, state, carrier, and company size. All numbers are sourced from carrier published rates, NAIC commercial line filings, NCCI loss costs, and Insureon's 2026 small business insurance report. Use these to sanity-check your renewal quotes and shop your account credibly.
The 2026 Headline Numbers
US small businesses (under $1 million annual revenue, fewer than 10 employees) pay a median of $111 per month for insurance across the six most common coverage types in 2026. That total breaks down approximately as: general liability $45 per month median, BOP $125 per month median (which includes GL plus property plus business interruption, so most BOP-buying businesses do not separately carry the $45 GL), workers compensation $45 per month per employee in low-hazard classes (much higher in high-hazard), commercial auto $185 per vehicle per month, professional liability $60 to $90 per month for service businesses, and cyber liability $50 to $130 per month for businesses with customer-data exposure.
The median is misleading without industry context. A bookkeeper pays $22 per month for GL; a roofer pays $390 per month for the same product. A retail store with five employees pays $400 per month for a full stack; a contractor with five employees pays $1,200 per month for the equivalent risk-management coverage. The "average" is useful as a sanity check, not as a personal price expectation.
Median Monthly Premium by Coverage Type (US 2026)
| Coverage | Median monthly | Low end | High end | Notes |
|---|---|---|---|---|
| General Liability ($1M/$2M) | $45 | $22 | $390 | Standard limits, all classes |
| Business Owner Policy | $125 | $57 | $420 | Bundles GL + property + BI |
| Workers Compensation | $45/emp (low-hazard) | $10/emp | $1,200+/emp (roofing) | Per employee, class-dependent |
| Commercial Auto | $185/vehicle | $135 | $450 | Per vehicle, varies by type |
| Professional Liability (E&O) | $67 | $25 | $425 | Service businesses |
| Cyber Liability ($1M limit) | $85 | $25 | $425 | Data-exposed businesses |
| EPLI ($1M limit) | $95 | $50 | $285 | Becomes meaningful at 1+ employees |
| D&O (private company, $1M limit) | $425 | $120 | $2,400+ | Funded companies, established mid-market |
| Commercial Umbrella ($5M layer) | $95 | $45 | $280 | Above primary GL |
| Commercial Property (standalone) | $165 | $45 | $680 | Varies wildly by location, catastrophe exposure |
Source: Insureon 2026 small business insurance report, NAIC commercial lines premium data, broker survey data across 12 US states (Q1 2026), individual carrier published rates. Median figures for businesses under $1M annual revenue.
Average Cost by Industry: General Liability Medians
| Industry | GL median/mo | GL annual median | Why this rate |
|---|---|---|---|
| Bookkeeping / Accounting | $22 | $264 | Lowest-risk white-collar, minimal claims exposure |
| Graphic Design (home-based) | $24 | $288 | Low physical exposure, low litigation |
| E-commerce (no warehouse) | $28 | $336 | Product liability adds moderate exposure |
| IT Consulting / Software Dev | $32 | $384 | Cyber separately handled; basic GL low |
| Marketing Agency | $34 | $408 | Advertising injury coverage relevant |
| Photography / Videography | $36 | $432 | Equipment use, event exposure |
| E-commerce (with warehouse) | $48 | $576 | Storage and shipping adds physical exposure |
| Retail Store | $45 | $540 | Slip-and-fall, theft exposure |
| Salon / Spa | $48 | $576 | Bodily injury exposure (chemicals, equipment) |
| Personal Trainer / Gym | $105 | $1,260 | High bodily injury exposure |
| Cleaning Service | $95 | $1,140 | Residential vs commercial split |
| Restaurant (no liquor) | $146 | $1,752 | Slip-and-fall, food-borne illness, kitchen injury |
| Restaurant (with liquor) | $213 | $2,560 | Liquor liability significant |
| HVAC Contractor | $195 | $2,340 | Property damage main driver |
| Plumber / Electrician | $180 | $2,160 | Higher property exposure |
| Landscaping | $256 | $3,072 | Equipment + property damage |
| General Contractor | $310 | $3,720 | Subcontractor risk included |
| Roofing Contractor | $390 | $4,680 | Highest GL risk category, falls/property damage |
Average Cost by State: Where Premiums Sit Relative to National
| State | Premium index vs US median | Reason |
|---|---|---|
| California | +35% to +60% | Litigation, regulation, replacement cost |
| New York | +25% to +45% | Litigation, Scaffold Law, DBL/PFL layered |
| Florida | +5% to +15% (property +80-200%) | Hurricane exposure dominates property |
| New Jersey | +15% to +30% | Litigation, density |
| Massachusetts | +10% to +25% | Litigation, replacement cost |
| Connecticut | +10% to +20% | Mature carrier market |
| Illinois | -5% to +5% | Near US median, Chicago carries load |
| Pennsylvania | -5% to +5% | Near US median |
| Michigan | -5% to +5% | Near US median |
| Texas | -15% to -25% | Tort reform, WC non-subscription option, competitive market |
| Georgia | -15% to -25% | Moderate litigation, low replacement cost |
| Ohio | -15% to -25% | BWC monopoly cheap, low property cost |
| Tennessee | -15% to -30% | Right-to-work, low litigation |
| Arizona | -10% to -20% | Competitive market, growing |
| Indiana | -15% to -25% | Low litigation, manufacturing-friendly |
| North Dakota | -25% to -40% | Lowest US rates, monopolistic WC fund |
| Wyoming | -25% to -40% | Lowest US rates, monopolistic WC fund |
For state-by-state detail with the actual numbers, see our pages on California, Texas, Florida, New York, Illinois, Ohio, Washington, and Georgia.
Average Cost by Company Size (US 2026)
| Company size | Total monthly insurance spend (median) | Most-common stack |
|---|---|---|
| Sole proprietor (0 employees) | $25-75 | GL only, plus E&O if services |
| 1-5 employees | $200-700 | GL or BOP + WC + EPLI |
| 6-25 employees | $700-2,500 | BOP + WC + EPLI + maybe D&O + cyber |
| 26-100 employees | $2,500-8,000 | Full stack: BOP, WC, EPLI, cyber, D&O, EBL, commercial auto |
| 100-500 employees | $8,000-25,000+ | Full stack with higher limits, possibly umbrella, possibly captive |
| 500+ employees | $25,000+ | Often partially self-insured WC, large deductible programs, captives |
For per-size detail see our Sole Proprietor and 1 to 5 Employees pages.
Average Cost by Carrier: 2026 Direct-to-Business Pricing
| Carrier | GL median/mo | BOP median/mo | Best for |
|---|---|---|---|
| NEXT Insurance | $75 | $109 | Trades, retail, basic small biz, speed |
| Hiscox | $109 | $165 | Professional services, E&O-heavy |
| biBerk (Berkshire) | $65 | $95 | Cheapest at very small / low-risk |
| The Hartford | $135 | $135 | Restaurants with alcohol, mid-market, broader appetite |
| Travelers | $130 | $140 | Mid-market, fleets, manufacturers |
| Chubb | $165 | $195 | High-net-worth, specialty, top claims service |
| Progressive Commercial | $165 | $140 | Commercial auto centerpiece, fleet |
| Thimble | $17 per event | n/a | Gig, event, short-term |
| Simply Business (broker) | $97 | $125 | Multi-carrier shopping |
| Coverdash | $102 | $155 | Digital-native, comparable to Hiscox |
For per-carrier detail see Hiscox, NEXT, Hartford, and Progressive Commercial.
The 2026 Rate Environment: Where Premiums Are Going
The US commercial insurance market entered a multi-year hard cycle in late 2019 and continues hardening in 2026, though specific lines are now diverging. The pattern:
| Line | 2026 projected rate change | Driver |
|---|---|---|
| Commercial property (cat-exposed) | +12 to +25% | Hurricane Ian, Helene, Milton; reinsurance hardening; replacement cost inflation |
| Commercial property (non-cat) | +4 to +8% | Replacement cost inflation, modest |
| General liability | +5 to +10% | Litigation costs rising |
| Commercial auto | +10 to +15% | Repair cost inflation, distracted driving litigation |
| Workers compensation | -2 to +1% | Counter-cyclical, claims frequency dropping |
| Professional liability / E&O | +5 to +12% | Securities and software-defect litigation |
| Cyber liability | +5 to +15% | Ransomware persistence, modest re-pricing |
| EPLI | +5 to +12% | Wage-and-hour and harassment litigation |
| D&O (private) | +8 to +20% | Capital structure complexity, regulatory enforcement |
| Umbrella / excess casualty | +15 to +30% | Layered exposure to large verdicts |
Source: NAIC commercial lines outlook 2026, Marsh McLennan commercial insurance market index, Insurance Information Institute 2026 commercial outlook. Renewals coming up in 2026 should anticipate at least these increases; better-than-expected outcomes are possible with strong loss history and effective broker negotiation.
Methodology and Sources
Primary data sources
- Insureon 2026 small business insurance report (national median quote data)
- NAIC commercial lines premium data, 2024 calendar year actuals
- NCCI advisory loss costs by state and class for 2026
- State Department of Insurance approved rate filings (CA, NY, TX, FL, IL, OH, WA, GA referenced specifically)
- Insurance Information Institute 2026 commercial lines outlook
- Carrier-published rates from NEXT, Hiscox, biBerk, Hartford, Travelers, Progressive, Chubb (Q1 2026 sampling)
- Broker quote sampling across 12 US states (Q1 2026, n=440 quotes)
- BLS commercial insurance employer-cost data
- Marsh McLennan US Commercial Insurance Market Index
- NFIB Small Business Optimism Index (insurance cost component)
Sampling
Quote data was gathered Q1 2026 across 12 US states (CA, TX, FL, NY, IL, OH, GA, WA, PA, MI, NC, AZ) for businesses under $1 million annual revenue. National medians weight by state premium volume, not by sample count, to avoid over-representing larger or smaller states. Quote samples represent admitted-market direct and broker channels; surplus-lines specialty quotes are excluded from medians but appear in the high-end ranges.
What this page is not
These are benchmark figures, not personalized quotes. Your actual insurance cost depends on your exact business activity, state, revenue, payroll, claims history, and operations details. The benchmark is useful as a sanity check; if your renewal quote is more than 20 percent above the benchmark for your class and state, that is a signal to shop. If it is more than 20 percent below, ask what is missing from coverage.