Business Owner's Policy (BOP)
$1,019 Average Annual Premium
$85 Average Monthly Premium
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Whether you’re in the retail, construction or financial services industry, most small business owners need small business insurance. Having it can help protect the livelihood you’ve worked so hard to build. The right small business coverage can help cover expensive damage and lawsuits from:
- Accidents
- Natural disasters
- Professional errors
- Workers’ comp claims
Find the Right Type of Insurance for Your Small Business
Small business insurance helps protect your company’s personal property and income. It also helps safeguard you against liability claims. Learn more about what small business insurance is.
This helps protect your business and its assets in the event of a lawsuit for things like negligence, bodily injury, property damage, libel and slander.
Most state laws require you to carry this insurance to help compensate employees for expenses associated with work-related injuries or illnesses like medical bills, rehabilitation and lost wages.
Data breach insurance, also known as cyber insurance, helps cover liability expenses from technology-related risks such as a data breach or cyberattack. If you collect, store, send or receive customer information, it’s important to protect against cyber risks.
Commercial auto insurance helps cover the cost of an auto accident if you or your employee is at fault. If you or your employees drive a vehicle for business reasons, having the right commercial vehicle insurance is important.
Professional liability insurance helps protect you and your company if you’re found negligent in the professional services you provided to a client, even if you didn’t make a mistake.
Business property insurance, also called commercial property insurance, helps protect your owned or rented building, tools and the equipment you use to operate your business.
Business Income Insurance, also known as business interruption coverage, helps replace your lost income if you can’t operate because of covered property damage. This includes damage from a fire, wind or theft.
What Are the Four Steps To Get Small Business Insurance?
- Assess your business operations
- Consider your risks
- Get a custom quote from a trusted insurance company or agency
- Choose the best rate and coverage for your business’ needs
What Are the Three Most Common Types of Small Business Insurance?
- Business Owner’s Policy (BOP): A BOP is the most common type of business insurance because it combines business property and general liability insurance into one policy. A BOP can be customized to the specific needs of your industry. This makes it a great option for businesses of any size, especially small businesses.
- General Liability Insurance (GLI): General liability insurance helps protect your business and its assets if you are sued by a third party for things like negligence, bodily injury, property damage, libel, and slander. GLI covers a wide variety of claims resulting from unexpected events, like a burglary or a customer slipping and falling. This coverage can help pay your defense costs and any judgments or settlements that result from a lawsuit.
- Workers’ Compensation Insurance: If your business has any employees, most states will require you to have workers’ compensation insurance. Workers' compensation insurance gives employees medical, wage and other financial benefits if they’re injured or become ill on the job. Be sure to check with your state laws to find out if you need workers’ compensation.
What Does Small Business Insurance Cost?
The cost of insurance varies for small businesses, and there are several factors that affect the cost of small business insurance. That’s because every small business is different and faces unique risks. Are you wondering, "How much does small business insurance cost?" What you can expect to pay typically depends on the type of insurance you need, your previous claims history, your industry and other factors. To save money, you can consider bundling coverages, like with a Business Owner’s Policy. Use the infographic below to see the average cost business owners paid for coverage with The Hartford:1
How Much Will Small Business Insurance Cost You?
You've worked hard building your business.
Now, it needs the right business insurance. If you're wondering how
much it will cost, that will depend on your:
Industry
Number of Employees
Payroll
Claims History
What's the Average Cost of Business Insurance?1
General Liability Insurance (GLI)
$805 Average Annual Premium
$67 Average Monthly Premium
Workers' Compensation Insurance
$1,028 Average Annual Premium
$86 Average Monthly Premium
Who Needs Small Business Insurance?
Every small business has unique needs and risks associated with what they do. Having the right business insurance coverage is the best way to safeguard your business from unexpected events and accidents. You can explore the distinct types of insurance designed for your industry and learn more about the coverages you need below.
More Information About Small Business Insurance
How Important Is Insurance for Small Businesses?
Most states require some form of insurance for small business owners. No matter how careful you are, accidents can happen. When they do, having the right types of coverage can make all the difference. Without business insurance, you’d have to pay out of pocket for costly claims, like lawsuits, libel, bodily injury, property damage and other unexpected events. Learn more about insurance needed for small business.
What Does Small Business Insurance Cover?
There’s not a one-size-fits-all small business insurance policy that covers every claim. The best small business liability insurance policy for one company may not be good for your company. Many small business owners start with a BOP because it contains liability and property coverage. A BOP can help protect your business from:
- Claims that it caused bodily injury or to someone else’s belongings
- Damage to the owned or rented building and equipment used to operate
- Losing income if you can’t operate because of covered property damage
Can The Hartford Help Me Get Small Business Insurance in My State?
We proudly partner with more than 1 million small business owners throughout the country. If you’re looking for more information about how to get small business insurance where you live, check out our state business insurance page.
Do I Need Small Business Insurance for My LLC?
Registering your business as a limited liability company (LLC) doesn’t protect your business from risks. We created our LLC insurance specifically for small business owners. The cost of LLC insurance can help keep you covered from devastating financial losses.
What Insurance Do You Need When Starting a Small Business?
Three essential types of business insurance you may need when starting a small business are:
- General liability insurance
- Business property insurance
- Business income insurance
Our BOP bundles these three types of business insurance together to make it easier for you to protect your company.
How Can I Get Lending for My Small Business?
Whether you’re starting a new venture or expanding your operations, nearly all small businesses will need extra capital at some point. Whatever the reason, there are several financing options available for small business owners to choose from. The Hartford has partnered with leading lenders to help you find the right small business loan for your business.
Why Over 1 Million Small Businesses Trust The Hartford
Not all insurance companies offer the same level of service. You’ll find that we’re more than just an ordinary insurance company – we’re a partner. We help small businesses with information on business insurance myths, business tax deadlines, business insurance tips and more.
Our representatives consistently earn some of the industry’s highest ratings and reviews for customer claims. We’ve also been recognized as a World’s Most Ethical Company® 14 times by Ethisphere.**
To find out how we can help protect your business, get a small business quote today.
Ready to Tailor Your Small Business Insurance?
Our specialists are here to help ensure you have the right kind of small business insurance, personalized to your company’s unique needs.
More Answers to Frequently Asked Small Business Insurance Questions
Customer Reviews
“You know you never think of workers’ comp until you pay for it and when that accident happens.”
Mark
“Claim was so easy to place online. Within 15 minutes … everything was taken care of almost immediately.”
Carl
“I’m confident that [they] will provide the highest level of service and support among business insurance providers.”
Chris
“[The] customer service representative was detailed on different options that would cater to my small business needs.”
Willie
“Our experience with [them] has been excellent and easy.”
Jon
“[They] took care of our claim without involving a great deal of my time.”
Martha
Read Small Business Claim Reviews (by product)
Workers' Compensation Insurance
Commercial Auto Insurance
Commercial Property Insurance
General Liability Insurance
Last Updated: October 3, 2023
1 Premium amounts presented are based on monthly premium paid by The Hartford's Small Business customers between 1/1/22 and 9/14/23 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.
** "World's Most Ethical Companies" and "Ethisphere" names are registered trademarks of Ethisphere LLC.
*** Based on a 2021 study by Keynova (formerly Dynatrace).
Additional disclosures below.
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