Updated 13 June 2026
Average Business Insurance Cost 2026: US Benchmarks by Policy, Industry, and Size
The benchmark numbers for 2026 US small business insurance. Indicative median monthly premiums by coverage, industry, state, carrier, and company size, compiled from published third-party benchmarks: Insureon's small business cost data, NAIC commercial lines data, NCCI loss costs, and the CIAB Commercial Market Index. These are market reference points, not personalized quotes. Use them to sanity-check your renewal 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 |
Indicative medians for businesses under $1M annual revenue, compiled from published third-party benchmarks: Insureon small business cost data, NAIC commercial lines premium data, and individual carrier published rates and rate examples. Not personalized quotes.
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 |
Carrier figures are indicative monthly costs drawn from each carrier's published rate examples and starting prices, not proprietary quote medians. Carriers do not publish true median premiums, so treat these as relative positioning between carriers rather than exact prices. For per-carrier detail see Hiscox, NEXT, Hartford, and Progressive Commercial.
The 2026 Rate Environment: Where Premiums Are Going
The hard cycle that ran from 2020 through 2023 has unwound. In its Q1 2026 Commercial Market Index, the Council of Insurance Agents and Brokers reported an average premium decrease of 1.2 percent, the first overall decline since 2017, as carriers competed harder and widened their appetite. The market is now split: most casualty and property lines are flat or falling, while commercial auto and umbrella keep climbing. The actual Q1 2026 line-by-line changes:
| Line | Q1 2026 rate change (CIAB) | Driver |
|---|---|---|
| Commercial property | -5.5% | Capacity returned, reinsurance eased; cat-exposed coastal and wildfire risks still carry surcharges |
| General liability | +2.6% | Litigation severity, but well off the 2023 peak |
| Commercial auto | +5.8% | Repair-cost inflation and large verdicts; 59th straight quarterly increase |
| Workers compensation | -3.7% | Counter-cyclical, claims frequency falling, reserves strong |
| Cyber liability | -3.5% | Capacity glut after the 2021-22 spike; ransomware controls now baseline |
| EPLI | Modest decrease | Softer after several hard years |
| D&O (private) | Modest decrease | Competition returned to a previously hard line |
| Umbrella / excess casualty | +4.8% | Layered exposure to nuclear verdicts keeps this line firm |
Source: CIAB Commercial Property/Casualty Market Index, Q1 2026 (survey published May 2026), cross-referenced with Marsh McLennan US commercial insurance market index. A softening market is the best time to shop: carriers are quoting more aggressively and underwriting terms are loosening, so a renewal that rises sharply for no line-specific reason is a strong signal to remarket your account.
Methodology and Sources
How these benchmarks are compiled
This page is a compilation of published third-party benchmarks, not original survey research. The figures aggregate publicly available cost data and reported rate examples from the sources below. Where a precise median is not publicly available (for example, individual carrier premiums), the figure is an indicative reference point drawn from each carrier's published starting prices and reported rate examples, presented for relative comparison rather than as an exact quote.
Data sources
- Insureon small business insurance cost data (national customer median quote data)
- CIAB Commercial Property/Casualty Market Index, Q1 2026 (line-by-line rate changes)
- NAIC commercial lines premium data (calendar-year actuals)
- NCCI advisory loss costs by state and class
- Insurance Information Institute commercial lines reporting
- Carrier-published rates and starting prices from NEXT, Hiscox, biBerk, Hartford, Travelers, Progressive, and Chubb
- Marsh McLennan US Commercial Insurance Market Index (rate-trend cross-reference)
What this page is not
These are benchmark reference figures, not personalized quotes, and not the result of a proprietary quote survey. 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.