Business insurance: what you need and what it costs

Pick your state, then type your employees and yearly payroll. See a rough yearly cost for workers' comp and the most common business policies, and whether your state requires workers' comp. These are estimates, not quotes.

Worked examples (yearly)

Hand check, row 1: $120,000 payroll ÷ 100 = 1,200 hundreds. Tennessee's benchmark is $0.80 per $100, so workers' comp is 1,200 × $0.80 = $960.00. General liability at the $45 monthly median is $45 × 12 = $540. Total: $960.00 + $540.00 = $1,500.00. Tennessee requires workers' comp at 5 or more employees (1 in construction), so 3 employees is “No.”

Outside check, row 5: NCCI's own example puts a roofer with $200,000 of payroll at $63.171 per $100: 2,000 × $63.171 = $126,342, the same as our $126,342.00. With a 1.25 mod that's $157,927.50. NCCI's exhibit also adds a $525 clerical class, then applies the mod to the $126,867 total for $158,584 (NCCI).

What small businesses pay

Insureon is an online insurance agency. These are the median prices its small business customers paid (half paid less, half paid more); most of its customers have fewer than 5 employees. Dates: general liability updated Mar. 30, 2026; BOP Apr. 17, 2026; professional liability Oct. 21, 2026; workers' comp Apr. 13, 2026; commercial auto Mar. 4, 2026.

• General liability vs BOP

  General liability pays if your business injures someone or damages their property, plus legal defense (SBA). A business owner's policy (BOP) bundles general liability with property coverage. The SBA says a bundle can save you money (SBA).

• Professional liability (E&O)

  For businesses that give advice or services. It covers claims of mistakes, negligence or malpractice in your work (SBA). General liability doesn't cover those, so service businesses often need both.

• Workers' comp

  Pays medical care for employees hurt or made sick by their jobs, and may pay some of their lost income (Texas TDI). The SBA lists it as required for businesses with employees, and each state sets the rules (SBA).

• How workers' comp is priced

  Payroll ÷ 100 × the rate for each job class, added up, then times your experience mod (NCCI). A mod under 1.00 lowers the price and over 1.00 raises it. If you don't qualify for a mod, it's 1.00.

• Commercial auto

  Covers cars, vans and trucks your business owns or uses for work. Median price Insureon customers paid: $245 a month. If you drive your own car for work, ask your insurer whether your personal policy covers it.

• Texas is different

  Most private Texas employers may choose not to carry workers' comp. Those with it are protected from most injury lawsuits by employees; those without it can be sued, must file a yearly notice with the state and must tell new employees in writing (Texas TDI).

Workers' comp by state

“Benchmark” is each state's index rate per $100 of payroll from Oregon's 2024 study, which prices the same mix of jobs in every state. It's a way to compare states, not your rate (Oregon DCBS 2024). Real rates depend on your job class: NCCI's example uses $0.75 for clerical work and $63.171 for roofing (NCCI). We checked 22 states' rules against the state agency or the law itself on Oct. 21, 2026; the calculator shows each full rule. For the others, find your state's agency on the U.S. Labor Dept. list.

What this leaves out

• Unemployment and disability insurance, which the SBA lists with workers' comp for businesses with employees (SBA). See state disability insurance.
• Product liability, cyber, umbrella, commercial property on its own, and bonds.
• Multiple job classes, payroll caps for owners, minimum premiums and state fees. A real quote includes these.
• State rules for farm workers, domestic workers, family members, owners and corporate officers, and out-of-state work.

Sources

• U.S. Small Business Administration: Get business insurance (six common types; employers must carry workers' comp, unemployment and, in some states, disability insurance) (checked October 21, 2026)
• Oregon DCBS: Workers' Compensation Premium Rate Ranking, Calendar Year 2024 (published June 2025; index rate per $100 of payroll for 50 states + DC; median $1.09) (checked October 21, 2026)
• NCCI: ABCs of Experience Rating (premium = payroll ÷ 100 × class rate, then × experience mod; Exhibit F) (checked October 21, 2026)
• Insureon: General liability insurance cost ($45/month median; updated Mar. 30, 2026) (checked October 21, 2026)
• Insureon: Business owner's policy cost ($83/month median; updated Apr. 17, 2026) (checked October 21, 2026)
• Insureon: Professional liability insurance cost ($88/month median; updated Oct. 21, 2026) (checked October 21, 2026)
• Insureon: Workers' compensation cost ($54/month median; updated Apr. 13, 2026) (checked October 21, 2026)
• Insureon: Commercial auto insurance cost ($245/month median; updated Mar. 4, 2026) (checked October 21, 2026)
• U.S. Department of Labor: State workers' compensation officials (every state's agency) (checked October 21, 2026)
• Texas Department of Insurance: Workers' compensation for employers (checked October 21, 2026)

State workers' comp rules: linked by state in the table above, each read Oct. 21, 2026.

Estimates, not quotes, and education only, not insurance or legal advice. Your real price depends on your type of work, location, claims history, coverage limits and the insurer. Workers' comp rules have exceptions (farm workers, family members, owners and officers, contractors); check with your state's agency. Nothing you type is sent or saved by us. No company pays to be on this page, and there are no partner links.