Business Insurance Cost Calculator
Estimate what business insurance will cost per year across every coverage line a small business actually buys — general liability, commercial property, workers' compensation, professional liability, commercial auto, and cyber — with a per-line breakdown and a realistic quoting range.
Financial Disclaimer
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.
These are planning estimates built on national median rates for small businesses, not quotes. Actual premiums depend on your specific class code, detailed loss history, state filings, and individual carrier appetite. Workers' compensation rates in particular are set by state filings and can differ by 3x for the same class between states. Always obtain quotes from at least three licensed carriers or an independent broker before budgeting or binding coverage.
Inputs
Results
Estimated Annual Cost
$4,836.00
≈ 5 smartphones
How to Use This Calculator
- Pick the industry class closest to your primary operations — it moves the estimate more than anything else on this page.
- Enter gross annual revenue and, if you have staff, total W-2 payroll. Workers' compensation is rated on payroll, not headcount.
- Enter the replacement value of your building, contents, inventory, and equipment. Leave it at 0 if you rent and own nothing worth insuring.
- Set your liability limit — $1M per occurrence / $2M aggregate is what most contracts and commercial leases require.
- Open the advanced inputs to set years in business, claims history, and state cost tier. Claims history is the steepest single lever.
- Read the per-line breakdown, not just the total: it tells you which coverage is driving your cost and where shopping will pay off.
- Take the range, not the midpoint, to your broker. Quotes for the same risk routinely vary 2-3x between carriers.
How the result changes with Annual Revenue
| Annual Revenue | Estimated Annual Cost |
|---|---|
| $150,000.00 | $1,865.71 |
| $1,200,000.00 | $22,931.41 |
| $2,500,000.00 | $85,125.77 |
| $800,000.00 | $9,379.10 |
What each input means
- Industry
- Your business class drives the rate more than any other input. Pick the closest match to your primary operations.
- Annual Revenue
- Gross annual revenue. General liability and cyber are rated on this.
- Number of Employees
- Full-time equivalents, excluding owners. Set to 0 if you have no staff — most states then exempt you from workers' comp.
- Annual Payroll
- Total annual W-2 payroll. Workers' compensation is rated per $100 of this.
- Property & Equipment Value
- Replacement value of the building (if you own it), plus contents, inventory, and equipment. Set to 0 if you have no insurable property.
- Liability Limit (per occurrence)
- $1M/$2M is the standard most contracts and landlords require. Doubling the limit adds roughly 20%, not 100%.
- Commercial Vehicles
- Vehicles titled to the business. Personal auto policies exclude business use, so this is not optional if you drive for work.
- Years in Business
- Established businesses earn experience credits. Under 3 years carries a surcharge.
- Claims in the Last 5 Years
- The steepest lever in commercial underwriting. Three claims can nearly double a premium.
- State Cost Tier
- Workers' comp rates are filed state by state and vary up to 3x for the same class. Liability follows the state's litigation climate.
What each result means
- Estimated Annual Cost
- All coverage lines combined, before any bundling discount.
- Likely Quote Range — Low
- Carriers with appetite for your class quote toward this end.
- Likely Quote Range — High
- Carriers without appetite quote toward this end, or decline.
- Professional Liability (E&O)
- Zero for classes that do not customarily carry E&O.
- GL + Property as a BOP
- Bundling those two lines into a Business Owner's Policy instead of buying them separately.
- Share of Revenue
- Most small businesses land between 0.5% and 3% of revenue. Well outside that range, re-check the inputs.
How this is calculated
Formula
Total = GL(revenue × class rate) + Property(value × class rate) + Comp(payroll ÷ 100 × class rate) + E&O + Auto + Cyber, each × limit × experience × claims × state modifiersWorked example, using the default values
- Classify the riskIndustry class → rate tableOffice / professional services = GL $2.40 per $1,000 revenue · Comp $0.30 per $100 payroll
- Rate general liability on revenueRated revenue base × rate per $1,000$500,000 ÷ 1,000 × $2.40 = $1,200 before modifiers
- Rate workers' compensation on payrollPayroll ÷ 100 × class rate$300,000 ÷ 100 × $0.30 = $837
- Apply underwriting modifiersLimit × experience × claims × state1.00 × 0.93 × 1.00 × 1.00 = 0.930× on liability lines
- Sum the coverage linesGL + Property + Comp + E&O + Auto + Cyber$1,116 + $930 + $837 + $837 + $1,116 = $4,836 per year
- Express as a quoting rangeEstimate × 0.70 to × 1.45$4,836 × 0.70 to 1.45 = $3,385 – $7,012
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