Business Insurance Cost Calculator

Estimate business insurance premiums by type, revenue, and industry.

By Konstantin Iakovlev · Updated April 2026 · Source: SBA — Business Guide

$

Total Annual

$10,500.00

Monthly

$875.00

Estimated Premiums

General Liability$1,500.00
Property$1,000.00
Workers' Compensation$7,500.00
E&O / Professional$500.00
Total Annual$10,500.00

Use the Business Insurance Cost Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Every business carries risk, and insurers price that risk into the premiums they charge. Enter your business type, projected revenue, and industry, and you'll get a working estimate of what you might pay for annual coverage. Treat the number as a budgeting anchor, not a final quote, so you can plan ahead without either under-protecting the operation or paying for more than you need.

Behind the estimate sits a model that weighs industry-specific risk, revenue tiers, and the coverage typically required for each business type. Construction and other high-hazard trades carry a steeper base multiplier than a low-risk professional service, for example. Those weights are applied to average premium data from major insurers and then nudged upward to account for an anticipated 3-5% rise in market rates during 2026.

Your real premium will land somewhere around this figure, shaped by claims history, location, and the specific limits and deductibles you settle on. Comprehensive coverage tends to cost more than owners expect, and skimping on it can expose the business to serious losses when something goes wrong. For a binding price tailored to your situation, work with a licensed insurance broker who can underwrite your account directly.

Example: Small IT Consulting Firm

  1. 1 Input: Business Type: IT Consulting, Projected 2026 Revenue: $250,000, Industry: Technology.
  2. 2 Calculation: Base premium for IT Consulting at $250k revenue tier (e.g., $1,200) + Technology industry risk multiplier (e.g., 1.15x) + 2026 market adjustment (e.g., 4% increase). General Liability estimated at $700, Professional Liability at $1,000, Business Owner's Policy (BOP) at $1,500.
  3. 3 Result: Estimated Annual Premium: $2,800 - $3,500. This range typically includes General Liability, Professional Liability (E&O), and potentially a basic Business Owner's Policy (BOP).
  4. 4 Context: For this IT consulting firm, the estimate reflects the lower risk associated with professional services but accounts for potential errors and omissions. The actual premium could be lower with a clean claims history or higher if additional coverages like cyber liability or workers' compensation (if applicable) are added.

Source: SBA — Business Guide · Last updated: April 2026

Frequently Asked Questions

How much does small business insurance cost?
Small businesses pay an average of $500-3,000 per year for a basic Business Owner's Policy (BOP) that combines general liability and property coverage. Workers compensation adds $1,000-3,000 per year depending on payroll and industry risk class.
What determines my business insurance premium?
Key factors include your industry and risk class, annual revenue, number of employees, claims history, location, coverage limits, and deductible amounts. High-risk industries like construction pay significantly more than office-based businesses.
Can I get business insurance with no employees?
Yes. Solo entrepreneurs and freelancers should carry general liability and professional liability (E&O) insurance. A BOP for a one-person business often costs $300-1,000 per year. Some clients and contracts require proof of insurance.

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