How Much Does Small Business Insurance Cost? Year 2024 & Next Year 2025

Whether you are a freelancer or a solopreneur or a small business owner, small business insurance can help you and protect your business.

According to the Bureau of Labor Statistics, many people in the United States are running small businesses. If you are one of them, you can save your business from destruction and save your hard work from being wasted. ( Small Business Insurance Cost )

Just a small amount of around $20 to $25 can protect your business from various disasters from storms and customer lawsuits that are only possible with small business insurance.

As a small business owner, protecting your business with insurance is crucial. However, understanding the costs associated with various insurance policies can be complex. In this article, we’ll break down the typical costs for small business insurance policies in 2024 and project costs for 2025, focusing on different types of coverage including Business Owners’ Policies (BOPs), Commercial Auto, Cyber Insurance, General Liability, Professional Liability, Property Insurance, and Workers’ Compensation. Additionally, we’ll provide tips on how to make small business insurance more affordable.

Typical Costs for Small Business Insurance Cost Policies

2024 Costs

Insurance Type	Typical Monthly Premiums	Typical Annual Premiums
Business Owners’ Policies	$40 to $115	$480 to $1,380
Commercial Auto Insurance	$125 to $575	$1,500 to $6,900
Cyber Insurance	$40 to $145	$480 to $1,740
General Liability	$25 to $115	$300 to $1,380
Professional Liability	$45 to $165	$540 to $1,980
Property Insurance	$60 to $190	$720 to $2,280
Workers’ Compensation	$35 to $120	$420 to $1,440

2025 Projected Costs

Insurance Type	Typical Monthly Premiums	Typical Annual Premiums
Business Owners’ Policies	$42 to $120	$504 to $1,440
Commercial Auto Insurance	$130 to $600	$1,560 to $7,200
Cyber Insurance	$42 to $155	$504 to $1,860
General Liability	$27 to $120	$324 to $1,440
Professional Liability	$48 to $175	$576 to $2,100
Property Insurance	$63 to $200	$756 to $2,400
Workers’ Compensation	$37 to $125	$444 to $1,500

Read “Best Small Business Insurance for LLCs: A Comprehensive Guide“

Business Owners’ Policies (BOPs)

Business Owners’ Policies (BOPs) combine several types of coverage into a single package, often including general liability, property insurance, and business interruption insurance. In 2024, monthly premiums for BOPs typically range from $40 to $115, with annual premiums between $480 and $1,380. For 2025, these costs are expected to rise slightly to between $42 and $120 per month, or $504 to $1,440 per year.

Commercial Auto

Commercial auto insurance protects vehicles used for business purposes. In 2024, monthly premiums range from $125 to $575, with annual costs from $1,500 to $6,900. By 2025, premiums are projected to increase to between $130 and $600 per month, or $1,560 to $7,200 per year.

Cyber Insurance

Cyber insurance protects against data breaches and cyberattacks. For 2024, you can expect to pay between $40 and $145 per month, or $480 to $1,740 annually. In 2025, these costs are anticipated to rise slightly to between $42 and $155 per month, or $504 to $1,860 per year.

General Liability

General liability insurance unfolds claims of bodily injury, property damage, and other liabilities. Monthly premiums typically range from $25 to $115 in 2024, with annual premiums between $300 and $1,380. Costs are expected to increase in 2025 to between $27 and $120 per month, or $324 to $1,440 per year.

Professional Liability

Professional liability insurance, also known as errors and omissions insurance, protects against claims of negligence or mistakes. In 2024, premiums range from $45 to $165 per month, or $540 to $1,980 per year. For 2025, costs are projected to increase to between $48 and $175 per month, or $576 to $2,100 annually.

Property Insurance

Property insurance covers damage to your business property, such as buildings and equipment. Monthly premiums in 2024 typically range from $60 to $190, with annual costs from $720 to $2,280. These costs are expected to increase in 2025 to between $63 and $200 per month, or $756 to $2,400 per year.

Workers’ Compensation

Workers’ compensation insurance provides coverage for employees who are injured on the job. In 2024, you can expect to pay between $35 and $120 per month, or $420 to $1,440 annually. For 2025, premiums are anticipated to rise slightly to between $37 and $125 per month, or $444 to $1,500 per year.

How to Get Affordable Small Business Insurance

01. Ask About Discounts

Insurance providers often offer discounts for various reasons, such as bundling policies or having a good claims history. Always inquire about available discounts to lower your premiums.

02. Pay Annually

Paying your insurance premium annually rather than monthly can often result in savings. Insurers may offer a discount for paying the full premium upfront.

03. Increase Your Deductible

Raising your deductible (the amount you pay out of pocket before insurance kicks in) can lower your monthly premiums. However, make sure you can afford the higher deductible in case of a claim.

04. Shop Around

Insurance rates can vary significantly between providers. Take the time to compare quotes from different insurers to find the best rate for the coverage you need.

By understanding the typical costs and implementing these strategies, you can ensure that your small business is adequately protected while managing your insurance expenses effectively.

Read for More Small Business Insurance Cost and Small Business Ideas

An other Article of Small Business Insurance Cost and Small Business For LLC

small business insurance cost