What each type of business insurance costs
No single number answers what business insurance costs, because each line is priced on a different base: payroll for workers' comp, vehicles for commercial auto, revenue or area for liability, property values for property. Government agencies publish almost no per-policy prices, so the premiums below are insurer-reported medians and averages from their own customers, labelled as such. Workers' comp is required of private employers in every state except Texas, where most private employers may choose; commercial auto liability is required in every state but New Hampshire; most other lines are required only by contracts, leases and lenders.
Contents8 sections
Key takeaways
- Each line has its own premium base: payroll (workers' comp), vehicles (commercial auto), sales, payroll or area (general liability), property values (property). Two policies cannot be compared until you know the base.
- Workers' comp is compulsory for private employers in every state except Texas, where it is optional for most private employers. Commercial auto liability is compulsory in every state except New Hampshire56.
- General liability, property, cyber and professional liability are not required by statute for most businesses. Leases, client contracts and lenders require them instead.
- NAIC data for 2025 shows $1,116.1 billion of direct premiums across all lines; other liability alone was $134.0 billion, with a 69.8% loss ratio1.
- Per-policy figures here come from insurers describing their own customers. Medians and averages differ and are never the average for all businesses.
Quick facts
| Other liability, 2025 | $134.0 billion direct premiums written, 69.8% loss ratio (NAIC)1 |
|---|---|
| Workers' comp, 2025 | $58.0 billion direct premiums written, 49.8% loss ratio (NAIC)1 |
| Commercial auto, 2025 | $77.8 billion direct premiums written, 66.8% loss ratio (NAIC)1 |
| Employer health mandate | At least 50 full-time employees, including full-time equivalents (IRS)2 |
Why prices differ so much between lines
An insurer prices a policy as a rate times an exposure base, then adjusts for limits, deductibles and your claims record. The base is what changes from line to line. Workers’ comp is rated per $100 of payroll by job class (per hour worked in Washington). Commercial auto is rated per vehicle, using its weight, use, radius and drivers. General liability uses the premium base attached to your ISO class, which can be sales, payroll, floor area or units. Property is priced on the insured value of buildings and contents, adjusted for construction, fire protection and location. Professional and cyber policies depend on revenue, the data you hold and the limit you choose. The full mechanics are in how premiums are calculated.
This is why a headline such as “business insurance costs $X a month” tells you little. A bookkeeper with no staff and a roofing contractor with 12 employees are buying different products on different bases.
Which lines the law requires
Requirements fall into three groups.
Required by state law. Workers’ compensation applies to private employers in every state except Texas, where the Texas Department of Insurance says private employers can choose to carry it and it is not required in most cases5. The employee threshold, the exempt occupations and the monopolistic state funds (North Dakota, Ohio, Washington, Wyoming) vary; our state-by-state table lists all 51. Commercial vehicles registered in a state must carry that state’s minimum liability limits, listed in the auto minimums table. New Hampshire is the exception: it does not compel auto insurance but requires drivers to show financial responsibility after an at-fault accident6. For-hire interstate carriers also face federal floors under 49 CFR 387.9, starting at $750,000 for nonhazardous property in vehicles over 10,000 pounds4.
Required by federal law for specific situations. An employer with an average of at least 50 full-time employees, counting full-time equivalents, in the prior calendar year must offer affordable coverage that meets minimum value or may owe an IRS payment2. See group health insurance. Federal regulators must direct regulated lenders not to make, increase, extend or renew a loan secured by improved real estate in an area identified as having special flood hazards unless the property is covered by flood insurance3.
Required by contract. For most other lines, no statute applies to a private business. Landlords require general liability and property coverage in leases, clients require liability, professional liability and umbrella limits, and government buyers publish their own insurance clauses. The coverage pages cite the clauses they rely on.
What the insurer-reported figures say
The table below sets three insurers’ own published figures side by side. Insureon reports medians for its small-business customers, The Hartford reports averages for its own, and NEXT reports its customer data. A dash means the source publishes no monthly figure for that line.
| Coverage | Insureon | The Hartford | NEXT | Priced on |
|---|---|---|---|---|
| General liability | $45/mo median | $68/mo average | – | Revenue, payroll or area, by class of business |
| Business owner’s policy (BOP) | $83/mo median | – | – | Property values plus liability exposure |
| Workers’ compensation | $54/mo median | – | – | Payroll per $100, by job class |
| Professional liability (E&O) | $88/mo median | – | $25/mo median | Profession, revenue and limits |
| Cyber liability | $129/mo median | – | – | Revenue, data held and limits |
| Commercial auto | $245/mo median | – | – | Each vehicle, its use and drivers |
Insurer- and broker-reported figures from each company’s own customers, as published on its website; not a random sample of all businesses. Figures are rounded as published. Insureon: medians of policies sold to about 100,000 small-business customers (pages dated Mar–Apr 2026). The Hartford: averages for its customers (May 2026 page). NEXT: customer data updated 2025–2026. Each coverage page explains the gaps between them.
Gaps between columns are expected. A median ignores the few large policies that pull an average upward. Customer mix matters: each insurer describes only its own small-business customers. Limits and deductibles also differ. For example, Insureon reports a median of $45 a month for general liability, while The Hartford reports a $68 average78. Neither figure is the average premium for all US businesses.
The market behind the prices
State insurance regulators collect premiums by line on the annual statement. The NAIC compiled them for 2025 below. These are direct premiums written by all insurers, not what a single policy costs, and the loss ratio is direct losses incurred divided by direct premiums earned1.
| Line | Direct premiums written | Loss ratio |
|---|---|---|
| Total All Lines | $1116.1 billion | 57.0% |
| Fire | $32.5 billion | 45.0% |
| Allied Lines | $30.7 billion | 25.6% |
| Federal Flood | $3.6 billion | 26.6% |
| Private Flood | $1.3 billion | 17.5% |
| Total Commercial Multiple Peril | $70.1 billion | 47.5% |
| Ocean Marine | $5.7 billion | 45.4% |
| Inland Marine | $35.7 billion | 38.2% |
| 11.1, 11.2 - Medical Professional Liability | $13.7 billion | 58.8% |
| Earthquake | $5.0 billion | 0.3% |
| Workers Compensation | $58.0 billion | 49.8% |
| 17.1, 17.2 - Other Liability | $134.0 billion | 69.8% |
| Excess workers Compensation | $1.2 billion | 48.6% |
| 18.1, 18.2 - Products Liability | $5.8 billion | 49.7% |
| Aircraft | $3.1 billion | 55.0% |
| Fidelity | $1.5 billion | 37.0% |
| Surety | $11.7 billion | 24.6% |
| Burglary and Theft | $0.7 billion | 26.3% |
| Boiler and Machinery | $3.1 billion | 29.2% |
| Total Commercial Auto (19.3, 19.4, 21.2) | $77.8 billion | 66.8% |
Direct premiums written/earned in thousands of US dollars; loss ratios = direct losses incurred / direct premiums earned (calendar year). National Association of Insurance Commissioners (NAIC), 2025 Market Share Reports for Property/Casualty Groups and Companies by State and Countrywide.
Three readings matter to a buyer. First, liability lines run hot: 69.8% for other liability and 71.9% for commercial auto liability, against 49.8% for workers’ comp1. A higher loss ratio means more of each premium dollar went to claims. Second, workers’ comp totals include prior-year premium for the state funds of North Dakota, Ohio, South Carolina, Washington and Wyoming1. Third, other liability excludes products liability, which the NAIC reports separately at $5.8 billion1. The renewal trend for each line is on the market trends page.
How to read the figures on coverage pages
Every figure carries one of four labels, and the page says which.
Official statistic
Published by a government agency or the NAIC, with the period stated.
Regulator-approved rate
A filed or approved rate with its effective date.
Insurer- or broker-reported
Named company, median or average, monthly or annual, whose customers, and the date of the page.
Our calculation
A worked example with the inputs shown.
Where no source publishes a figure for a coverage, the page explains what sets the price rather than offering an estimate. Insurer pages change without notice, so each is dated. Your own quote will turn on your class code, your base, your limits and your claims history, and the coverage page for each line shows how.
All coverage pages
Property and vehicles
- Commercial autoPer-vehicle premiums by type of operation, how vehicles are classed and rated, and federal trucking minimums
- Commercial propertyHow property is rated (COPE, PPC, insured value), coinsurance worked out, insurer figures and 2026 trend
- Inland marineTools and equipment floaters, builders risk and transit: insurer figures, rating by value, valuation
- Hired and non-owned autoLiability for rented and employee-owned cars used on business: forms, rating basis and worked examples
- Commercial floodNFIP non-residential policy costs from FEMA records, the $500,000 limits, fees, and lender rules
Specialty
- Directors and officers (D&O)The few published D&O prices, how Sides A, B and C split the limit, and who makes companies buy it
- Employment practices liability (EPLI)The one published EPLI price, what the policy pays for and excludes, and the EEOC data behind the claims
- Liquor liabilityWhy GL excludes alcohol claims, how liquor sales set the premium, and which states require coverage
- Surety bondsWho must post a bond, how much bond the law requires, how the premium is set and what SBA charges
- Medical malpracticeSpecialty rates via AMA research, claims-made and tail, state patient compensation funds and mandates
Core policies
- General liabilityInsurer-reported premiums side by side, how GL is rated, and the limits contracts require
- Business owner's policyBOP premiums insurers report, who qualifies, what the package leaves out, and how it is rated
- Workers’ compensationOfficial cost data, insurer figures, how comp premium is built, and 2026 state rate decisions
- Group health insuranceOfficial premium data, the employer's share, 2026 ACA penalties, the small-business credit and HRA limits
Liability
- Professional liability (E&O)Insurer medians side by side, claims-made mechanics, tail pricing and the licensing rules that mandate E&O
- Cyber liabilityInsurer-reported cyber premiums, NAIC market data, ransomware sublimits and the controls underwriters check
- Commercial umbrellaUmbrella vs excess, underlying limits, contract requirements and why umbrella prices keep rising
Sources
- 1
- 2 Internal Revenue Service, Employer Shared Responsibility Provisions Checked 13 Oct 2026 · Back to text ↑
- 3
- 4 FMCSA / eCFR, 49 CFR 387.9, Financial responsibility, minimum limits Checked 13 Oct 2026 · Back to text ↑
- 5 Texas Department of Insurance, Workers' compensation for employers Checked 13 Oct 2026 · Back to text ↑
- 6 New Hampshire Insurance Department, New Hampshire automobile insurance guide Checked 13 Oct 2026 · Back to text ↑
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