Small-business insurance protects your investment in your company in the case of lawsuits, accidents and claims of negligence. The average cost for general liability insurance varies depending on the type of business and risks involved. The average cost for professional liability insurance, or errors and ommissions insurance, for small consulting businesses is around a few thousand dollars a year.
Average Insurance Costs
The average cost of insurance for a small business depends on the size of the business and the nature of operations. The riskier and larger the operation, the more the business will pay. According to Trusted Choice Independent Insurance Agents, a sole proprietor can expect to pay around $500 annually for general liability insurance, while a small consulting business will most likely pay over $3,000 annually. Small businesses that have liability concerns, such as landscapers, can expect to pay around $15,000 annually. Errors and omission insurance averages between $1,000 and $3,000 per $1 million of coverage.
Based in San Diego, Calif., Madison Garcia is a writer specializing in business topics. Garcia received her Master of Science in accountancy from San Diego State University.