How much does home-based business insurance cost?
Asked by: Prof. Darrick Hodkiewicz IV | Last update: September 26, 2025Score: 4.9/5 (2 votes)
What insurance do I need to run a business from home?
General Liability
This is the most common coverage for home businesses. It helps to pay for third-party injuries and damages for which you're responsible.
What is the best insurance for a home-based business?
The best protection for home businesses is usually a business owner's policy, which bundles general liability and commercial property insurance at an affordable rate. Chat with an insurance agent to make sure your coverage matches your business needs.
Can an LLC get homeowners insurance?
In most cases, insuring a home held in a trust or LLC isn't any more expensive than if you owned it directly. But it is necessary to work with your insurance advisor to make sure that there are no gaps in the coverage for either the property or yourself.
How much is business property insurance per month?
Average cost of commercial property insurance
On average, small businesses pay between $1,000 and $3,000 for commercial property coverage, which is around $83 to $250 per month. However, there are many different factors at play that can cause the cost to be significantly higher.
How to Estimate What Insurance Costs Will Be on a Home : Home & Business Insurance
How much is a $1 million dollar insurance policy for a business?
On average, a $1 million liability insurance policy costs $69 a month, or $824 a year, for our small business owners. Keep in mind that every business is different, so the $1 million liability insurance cost will vary.
How much insurance does an LLC need?
Finding out how much LLC insurance costs at the professional level will vary depending on your location, the number of employees you have, and more. On average, though, an LLC owner might be looking at a price tag of anywhere between $500 to $1,000 on professional liability insurance.
How much is a $5 million dollar business insurance policy?
Average Cost
On average, small businesses might expect to pay significantly more for a $5 million policy compared to lower coverage limits. While a $1 million policy might cost around $1,000 annually, a $5 million policy can range from $2,000 to $2,500 per year.
Can you legally run a business without insurance?
While there is no federal law mandating business insurance, many states and local jurisdictions have specific regulations in place. Additionally, certain types of insurance, such as workers' compensation, may be mandatory at the state level.
Are home businesses covered by homeowners insurance?
A standard homeowners insurance policy may provide limited coverage for business property that is stored in your home. Not every homeowners insurance policy provides coverage for business property, however, and even if yours does, the coverage limits may not be high enough to protect it.
Can I self insure my business?
Some large businesses may choose to self-insure to save money and control costs for their commercial property, auto and general liability coverages. When a business chooses this route, they don't buy a plan from an insurance company.
How much money do you need to start a home insurance company?
Depending on the size and structure of the business, industry experts estimate startup capital of between $50,000 and $500,000, possibly even more.
What insurance do I need to run my own business?
When you're starting your own business, some types of coverage you should make sure to have are: General liability insurance. Professional liability insurance. Workers' compensation insurance.
How much does a 2 million dollar business insurance policy cost?
How much is a 2-million dollar insurance policy for a business? On average, an insurance policy that offers coverage for up to $2 million can cost about $30 a month in premiums.
Do I insure myself or my LLC?
If you have established an LLC, you have created a separate legal entity from yourself as a practitioner that can be sued, and business entity coverage is the only way to insure this. So, even if you are the only person there, business entity coverage is appropriate in protecting your career and assets.
What is the downside of an LLC?
Profits Taxed Individually Each Year
One possible downside of an LLC is the obligation to pay taxes on earnings. As a member of an LLC, you must pay taxes annually on your portion of the company's profits regardless if those profits remain within the business.
How much do small business owners pay for insurance?
1. General liability insurance cost. Small businesses typically pay around $40 to $55 monthly or $480 to $660 annually for general liability insurance coverage. But since your business faces a different set of risks compared to other enterprises, your premiums may likewise vary.
How much is business insurance per month for LLC?
Our customers paid an average of $85 a month for a Business Owner's Policy (BOP), a common type of LLC insurance. Costs for LLC insurance, or small business insurance, can vary. So, small business owners shouldn't expect to pay the same rate.
How much does a $2 million umbrella policy cost?
Typically, you can expect an umbrella policy to cost approximately $380 per year for $1 million to $2 million in coverage.
What type of insurance is sold to small businesses?
Designed specifically for small businesses, a Business Owners Policy (BOP) is a combination commercial policy that covers property, general liability and business interruption.
How much is $1 million commercial insurance?
While a $1 million policy might cost between $40 and $150 per month for small businesses, the exact price is tailored to each business's unique situation.
Why is business insurance so expensive?
More Claims
And when insurance companies have to pay out, they need to take more in. That's just how insurance works. If they ran out of money, they wouldn't be able to pay future claims. Over time, this leads to higher premiums for everyone (not just the ones who filed a claim).
How much does a certificate of insurance cost for a small business?
How much does a certificate of insurance cost? A certificate of insurance is free. Much like a receipt, the document is proof that the policyholder paid for the policy and has insurance.