How Much Does Business Insurance Cost?
Annual sales, payroll and prior claims all factor into your insurance premium.

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Insurers tailor business policies to each company’s level of risk. That means business insurance costs depend on factors like your industry, business size and how much coverage you need.
NerdWallet recommends all businesses have at least general liability insurance. Those premiums range from $700 to $3,000 per year (roughly $58 to $250 per month) for businesses with $1 million or less in annual revenue, according to online brokerage Coverdash.
Additional coverage will increase how much you pay for small-business insurance. Get several quotes to compare prices and options and find the best fit for you.

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What affects the cost of business insurance
If your business has filed claims before, that’s a red flag for insurance companies. It signals your business is either inherently risky or that your company is not taking proper steps to mitigate risk.
Other than that, your premium will depend on the following:




Why these factors matter
Example business insurance costs
Coverdash says premiums for policies it sells generally fall into the following ranges for businesses with with $1 million or less in annual revenue:
General liability and business owner’s policies: $700-$3,000 per year.
Professional liability: $1,200-$2,200 per year.
Cyber liability: $1,200-$3,000 per year.
Directors and officers insurance: $1,200-$7,000 per year.
Workers' compensation: $1,000-$10,000 per year.

Save up to 25% on business insurance
NerdWallet Small Business offers General Liability coverage starting at $19/month, with free tailored quotes in just a few minutes through our partner, NEXT.via NEXT
How to control the cost of your business insurance
The best way to save money on business insurance is to have very few claims made against your policy. Insurance companies reward companies that are diligent about worker and customer safety. They ding businesses with a history of accidents, workplace injuries or negligence lawsuits.
Beyond that, you may be able to find discounts on your business insurance if you take the following steps:
Bundle your coverage. Most insurance providers offer discounts if you buy several policies at once.
Prepay your annual premium. Your insurer may offer a discount if you pay annually rather than monthly.
Adjust your deductibles. Typically a higher deductible equals a lower premium. (This can backfire, though — if you have to file a claim, you’ll have to pay more before your coverage kicks in.)
Invest in workplace safety. Minimize your risk profile by offering formal safety training and keeping up with routine facility maintenance.