How Much Does Small Business Insurance Cost?
Running a small business is exciting—but let’s be honest, it also comes with risks. Whether you’re opening a coffee shop, running a consulting agency, or growing your online store, you want to protect what you’re building. That’s where small business insurance comes in.
But the big question most owners ask is: How much does small business insurance cost?
The truth? There’s no one-size-fits-all price. Costs depend on your industry, location, coverage needs, employee count, and even your past claims. In this blog, we’ll break things down so you can understand what affects pricing, what typical policies cost, and how companies like E360 Insurance help small businesses find affordable, customized coverage with disability insurance.
Why Small Business Insurance Matters
Imagine running your business typically and—out of nowhere—something unanticipated happens. A client slips and falls. Your outfit gets stolen. A fire damages your office. Or perhaps you ca n’t work because of an injury, making Disability Insurance more important than ever.
Insurance protects you from these unforeseen fiscal shocks. Without it, one incident could bring thousands or indeed shut down your business. Suppose of insurance as a safety net that lets you run your business with confidence.
So, How Much Does Small Business Insurance Cost?
Here’s a simple breakdown: most small businesses pay between $50 and $250 per month, depending on the type of coverage they choose. Some may pay more, some less.
Why such a big range? Because every business has different risks. A handyman faces different risks than a marketing agency. A restaurant has more exposure than a home-based business.
Let’s look at some common insurance types and what they typically cost.
Common Types of Small Business Insurance & Average Costs
1. General Liability Insurance
This is the most basic and most important policy. It covers injuries, property damage, and lawsuits.
- Average Cost: $30–$100 per month
- Who needs it? Almost every business
- Why it matters: One small accident can be expensive
Have customers visited your office? Work in public spaces? Then you definitely need this.
2. Commercial Property Insurance
This covers your structure, outfit, force, and tools.
Average Cost: $60–$200 per month
For whom? Shops, salons, services, caffs
Covers Fire, theft, vandalization, and certain natural disasters
Think of it as insurance for everything your business owns.
3. Business Owner’s Policy (BOP)
A BOP bundles General Liability + Property Insurance—usually at a discounted rate.
- Average Cost: $80–$150 per month
- Best for: Small to medium businesses
- Why choose it: More coverage, better price
It’s one of the most cost-effective options for small businesses.
4. Workers’ Compensation Insurance
Required in most states if you have employees. It covers medical bills and lost wages if an employee is injured at work.
- Average Cost: $75–$300 per month
- Cost depends on: Number of employees + job risk level
A construction worker will cost more to insure than an office assistant, for obvious reasons.
5. Disability Insurance
Disability Insurance replaces part of your income, If you come injured or unfit to work. Numerous small business possessors overlook it, but it’s incredibly precious.
- Average Cost $ 30 –$ 100 per month
- Why it matters Your work may be your main source of income
- Good for tone- employed possessors, single entrepreneurs, small brigades
It’s a smart way to cover your income and business stability.
6. Professional Liability Insurance
Great for service-based businesses. It protects you from errors, mistakes, or negligence claims.
- Average Cost: $40–$120 per month
- For: Consultants, designers, accountants, coaches, freelancers
If your advice or work could cost someone money, this is essential.
What Affects Your Insurance Cost?
Curious why some businesses pay more than others? Here are the main factors:
- Industry risk level
- Business size and revenue
- Location (Los Angeles vs. a rural area)
- Coverage limits
- Claims history
- Number of employees
For example, a small café in Los Angeles will pay more than a home-based online tutor simply because the risks are higher.
How E360 Insurance Helps Small Businesses Save Money
Many business owners struggle to figure out what coverage they actually need. That’s where E360 Insurance makes things easier. They help small businesses in Los Angeles find:
- Tailored insurance packages
- Affordable monthly premiums
- Flexible coverage options
- Fast quotes and expert guidance
Instead of guessing what protection is right for you, you get clarity—and better pricing.
Final Thoughts—Protect Your Business the Smart Way
Small business insurance is n’t just another expenditure; it’s protection for everything you’ve worked hard to make. Costs vary, but with the right guidance, you can get strong content without overspending.
Visit E360 Insurance for Disability Insurance and other insurance options.
If you’re ready to explore affordable options or want a substantiated quotation.
A safer, more secure business is just one smart step away.