Updated 27 March 2026
Business Insurance Cost by State
California and New York are the most expensive. Texas is the only state where workers comp is optional. North Dakota has the cheapest rates in the country.
Cost by State
| State | General Liability | Workers Comp | BOP | Notes |
|---|---|---|---|---|
| California | $1,200-$4,000/yr | $1.34/$100 payroll | $1,500-$5,000/yr | Most expensive. High litigation, strict regulations. |
| New York | $1,000-$3,500/yr | $1.44/$100 payroll | $1,200-$4,500/yr | NYC premiums are 40-60% higher than upstate. |
| Texas | $600-$2,000/yr | Not required (only state) | $800-$2,500/yr | Only state where workers comp is optional. Lower premiums overall. |
| Florida | $700-$2,500/yr | $0.88/$100 payroll | $900-$3,000/yr | Hurricane risk increases property coverage costs. |
| Illinois | $700-$2,200/yr | $1.12/$100 payroll | $900-$3,000/yr | Chicago drives up premiums. Downstate is much cheaper. |
| Ohio | $500-$1,800/yr | State-fund only ($0.74/$100) | $700-$2,200/yr | Monopolistic state fund for workers comp. Lower premiums. |
| Pennsylvania | $600-$2,000/yr | $1.02/$100 payroll | $800-$2,500/yr | Mid-range state. Philadelphia is more expensive. |
| Georgia | $500-$1,800/yr | $0.92/$100 payroll | $700-$2,200/yr | Growing business hub. Premiums rising with population. |
| Wyoming | $400-$1,200/yr | State-fund ($0.62/$100) | $500-$1,500/yr | Low population, low claims. Among the cheapest states. |
| North Dakota | $400-$1,200/yr | State-fund ($0.58/$100) | $500-$1,400/yr | Cheapest workers comp in the country. |
What Affects Your Premium
Industry classification
3-10x differenceA tech startup pays $500-$1,500/year for GL. A construction company pays $3,000-$10,000+. Your NAICS/SIC code determines your base rate.
Revenue / payroll size
Direct multiplierPremiums scale with revenue (for GL) and payroll (for workers comp). $500K revenue = roughly 2x the premium of $250K revenue.
Claims history
20-50% swingA clean 3-year claims history can reduce premiums 20-30%. One large claim can increase them 30-50% at renewal.
Location within state
20-60% swingUrban areas (NYC, LA, Chicago) have higher premiums than rural areas in the same state due to more litigation and higher property values.
Deductible choice
15-30% savingsChoosing a $2,500 deductible instead of $500 can reduce your premium by 15-30%. Self-insure small losses.