For most small business owners, the question isn't if they need insurance, but how much it will cost. In 2026, the insurance market has seen significant shifts due to rising litigation costs and digital risks.
Average Costs by Policy Type
The average small business in the US spends between $500 and $3,500 per year on insurance. However, this varies wildly based on your industry and location.
- General Liability: $400 - $1,500/year
- Workers' Comp: $45 - $110/month per employee
- Professional Liability (E&O): $500 - $2,500/year
- BOP (Bundle): $500 - $3,000/year
Key Factors Driving 2026 Premiums
Three main factors are influencing your premium today:
- Industry Risk: Construction and high-contact retail remain the most expensive.
- Payroll Volume: Directly impacts your workers' compensation rates.
- Claims History: Even one "nuisance" claim can raise rates by 15-20%.
See Your Specific Costs
Use our calculator to get an estimate based on your industry and state.
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About This Guide
This guide was researched and written by the General Liability Guide editorial team to help business owners navigate the complexities of commercial insurance. We use data from industry leaders and regulatory filings to provide the most accurate estimates possible.