If you’ve recently formed a Limited Liability Company (LLC), you may be wondering, “How much does LLC insurance cost per month?” The answer depends on your industry, location, and coverage needs—but the good news is that protecting your business doesn’t have to break the bank.
In this article, we’ll break down the average monthly costs of popular LLC insurance policies, what influences those rates, and how you can get the best coverage at the most affordable price.
📊 Average Monthly Cost of LLC Insurance
While every business is different, here are some typical monthly price ranges for the most common types of LLC insurance:
| Type of Coverage | Average Monthly Cost |
|---|---|
| General Liability Insurance | $30 – $75 |
| Professional Liability (E&O) | $50 – $150 |
| Business Owner’s Policy (BOP) | $80 – $200 |
| Workers’ Compensation | $70 – $250+ |
| Commercial Auto | $75 – $200+ per vehicle |
| Cyber Liability Insurance | $100 – $250 |
🧾 What Affects the Cost of LLC Insurance?
Several factors influence what you’ll pay for business insurance each month:
- Type of Business: A construction LLC will pay more than a home-based consulting firm.
- Location: Insurance costs in California—especially Sacramento—can be higher than in other regions due to local regulations and risk factors.
- Revenue and Payroll: More income and more employees typically mean higher premiums.
- Claims History: A clean record can lower your rates.
- Coverage Limits: Higher limits and lower deductibles will increase your monthly premium.
- Bundle Options: Bundling policies (like a BOP) can reduce overall costs.
🧠 Why Your LLC Needs Insurance
Forming an LLC offers some legal protections, but it doesn’t cover everything. LLC insurance protects your business from:
- Third-party lawsuits
- Property damage or theft
- Employee injuries
- Cyberattacks and data breaches
- Professional errors or omissions
Having the right insurance not only shields you from costly legal battles—it can also build credibility with clients, landlords, and partners.
📍 Example: Small Sacramento-Based LLC
Let’s say you operate a small Sacramento consulting business with no employees. You might pay:
- General Liability: ~$40/month
- Professional Liability: ~$60/month
- BOP (bundled coverage): ~$100/month
Add more coverage (like cyber or workers’ comp), and your monthly cost will rise accordingly.
💡 How to Save on LLC Insurance
Here are a few tips to help you lower your monthly insurance premiums:
- Work with an independent insurance agent who can shop multiple carriers.
- Bundle policies for discounts (e.g., BOPs).
- Adjust your coverage limits to fit your current risk level.
- Improve your risk profile with safety training or security systems.
✅ Get a Quote from a Local Sacramento Insurance Expert
At Eugene C. Yates Insurance Agency, we’ve been helping Sacramento business owners find affordable, high-quality insurance for over 75 years. Our experienced agents work with top-rated carriers to match your LLC with a plan that fits your budget and business goals.
📞 Ready to protect your LLC? Contact us today for a free custom quote!