As a small business owner, you’re constantly juggling responsibilities—customer service, employee management, marketing, and more. But one critical area you can’t afford to overlook is liability insurance. Whether you run a home-based business or a brick-and-mortar shop, liability insurance protects your company from lawsuits, medical bills, and costly claims.
But let’s face it: you’re on a budget. The good news? There are affordable liability insurance options that offer great coverage without draining your bank account. In this blog, we’ll break down the five best cheap liability insurance providers for small business owners in 2025, explain why they’re worth your attention, and share tips to get the best rates.
What is Liability Insurance and Why Do You Need It?
Liability insurance covers legal and financial responsibilities if your business is found liable for injuries, property damage, or advertising mistakes. This type of insurance not only provides a safety net in the event of lawsuits and claims but also ensures that your business can continue to operate without the devastating financial burden of unexpected expenses. It can save you thousands—if not millions—in settlements, legal fees, and medical costs, allowing you to focus on growth and stability without the constant worry of potential liabilities hanging over your head. Additionally, having liability insurance can enhance your business’s credibility and trustworthiness, as clients and partners will feel more secure knowing you are protected against unforeseen circumstances.
You need it if you:
- Work directly with customers or clients
- Operate from a physical location
- Sell products or services
- Have employees
- Want to land larger contracts (many clients require proof of insurance)
- Maintain a professional reputation
- Provide customer support and service
- Develop a marketing strategy
- Manage inventory and logistics
- Comply with local regulations and licensing requirements
Top 5 Cheap Liability Insurance Providers for Small Business Owners (2025)
1. NEXT Insurance
Best for: Solo entrepreneurs and service-based businesses
Average monthly cost: $11–$25/month
Why it’s great:
NEXT is designed specifically for small business owners, making it an invaluable resource for entrepreneurs looking to protect their enterprises. Their online platform is incredibly user-friendly—you can get a quote, buy a policy, and download proof of insurance in just a few minutes, allowing you to focus more on running your business rather than navigating complicated insurance processes. Additionally, their rates are some of the lowest in the industry, ensuring that you can afford the coverage you need without breaking the bank. They offer flexible coverage options by profession, so whether you’re a contractor, consultant, or retail owner, you can find a policy tailored to your specific needs. This level of customization allows small business owners to secure the right protection, ensuring peace of mind while they pursue their passions and grow their companies.
Bonus: Bundle policies (like general liability + commercial auto) for even deeper discounts, making it a savvy choice for businesses looking to save money while ensuring comprehensive coverage. Combining these policies can not only simplify your insurance management but also allow you to leverage greater savings, as insurers often reward such combinations with significant discounts. This strategic approach not only enhances your financial efficiency but also provides peace of mind, knowing that both your operations and vehicles are adequately protected under one cohesive plan.
Where to find it: NEXT Insurance – Small Business Insurance Quotes Online
Get instant general liability, professional liability, and more—all tailored for small business owners
2. Hiscox
Best for: Home-based businesses and consultants
Average monthly cost: $15–$30/month
Why it’s great:
Hiscox has been around for over 100 years and has a reputation for excellent service, consistently demonstrating a commitment to customer satisfaction and support. They specialize in liability insurance for small businesses, catering specifically to the unique challenges faced by entrepreneurs. By understanding the needs of sole proprietors and freelancers, Hiscox is able to offer personalized solutions that fit a variety of professional niches. Moreover, the flexibility of their policies allows you to tailor coverage to your specific industry, ensuring comprehensive protection against potential risks. As your business grows, you can easily scale your insurance coverage, providing peace of mind that evolves alongside your entrepreneurial journey. This adaptability, coupled with their extensive experience and customer-focused approach, makes Hiscox a standout choice for small business owners looking for reliable insurance solutions.
Bonus: Worldwide coverage is available for some policies, which is particularly advantageous for remote or digital business owners who operate across borders. This flexibility allows them to tailor their insurance needs to suit a global clientele, ensuring that they are protected no matter where their clients or projects are located. Having such comprehensive coverage not only provides peace of mind but also fosters confidence in pursuing international opportunities, thus enabling thriving business ventures in today’s interconnected marketplace.
Where to find it: Hiscox Small Business Insurance – Get a Free Quote
Affordable, customizable coverage starting around $30/month designed for consultants, freelancers, and home-based businesses.
3. Thimble
Best for: Gig workers and short-term coverage
Average monthly cost: $9–$20/month
Why it’s great:
Thimble is perfect for part-time business owners or contractors who only need insurance when they’re working, providing unparalleled flexibility and ease of use. You can buy coverage by the hour, day, week, or month, allowing you to tailor your insurance needs to your specific schedule and workload. This adaptability is particularly ideal for event vendors, handymen, or seasonal businesses that may experience fluctuating demands throughout the year. With Thimble, you can confidently focus on your projects, knowing that you have the right coverage in place when you need it most, freeing you from the worry of underinsurance during peak times or overpayment during downtimes. This innovative approach not only saves you money but also empowers you to grow your business without the constraints of traditional insurance models.
Bonus: They provide instant proof of insurance, so you can accept jobs quickly without waiting. This feature not only enhances your credibility with potential clients but also streamlines the onboarding process, allowing you to focus on what you do best—delivering exceptional service. With immediate access to your insurance documentation, you can confidently engage with new opportunities and respond to requests promptly, ensuring that you never miss out on an important job. This level of efficiency is invaluable in today’s fast-paced market and gives you a competitive edge over others who might face delays in validating their coverage.
Where to find it: Thimble Insurance – Online Insurance for Businesses
Flexible insurance by the job, month, or year—general liability policies start at around $17/month
4. Simply Business
Best for: Comparing multiple quotes instantly
Average monthly cost: Varies ($12–$40/month on average)
Why it’s great:
Simply Business is not an insurance provider, but a unique marketplace that lets you compare policies from several top-rated insurers at once, giving you an extensive range of options to choose from. It’s like the Kayak of business insurance, streamlining your search and saving you time and effort. You can sort the offerings by various criteria, including price, coverage type, and customer reviews, ensuring that you find a policy that perfectly fits your specific business needs. This feature not only helps you save money but also empowers you to make informed decisions by allowing you to see how different policies stack up against one another, enhancing your ability to choose the best protection for your enterprise. Furthermore, Simply Business often provides additional resources and tools to help you understand the nuances of business insurance, making the entire process much more user-friendly.
Bonus: Great for finding hidden deals or lesser-known providers that offer low-cost coverage, which can be especially beneficial for individuals and families looking to save money without sacrificing quality. By exploring these options, consumers can discover a variety of plans that may not be widely advertised, providing them with greater flexibility and better suited choices for their unique needs. Engaging with smaller, niche providers can often yield more personalized service and tailored coverage that meets specific requirements, making the search for affordable insurance a more rewarding experience overall.
Where to find it: Simply Business – Small Business Insurance
Compare quotes from multiple top insurers (including general & professional liability) in under 10 minutes
5. biBERK (a Berkshire Hathaway Company)
Best for: Growing businesses with employees
Average monthly cost: $20–$45/month
Why it’s great:
Backed by Warren Buffett’s Berkshire Hathaway, biBERK offers direct-to-consumer policies with no middleman, ensuring that customers receive the best possible value for their insurance needs. This eliminates unnecessary markups and leads to significantly lower costs, while also providing better service tailored to individual business requirements. Their policies are particularly ideal for businesses scaling up, as they also adapt to the changing needs of growing companies. biBERK offers a comprehensive range of coverage options, from general liability to workers’ compensation and cyber liability, ensuring that businesses are well-protected against a variety of risks. Furthermore, their user-friendly platform simplifies the purchasing process, making it easy for entrepreneurs to secure the necessary coverage without overwhelming complexity. Their commitment to customer satisfaction and innovative solutions sets them apart in the insurance landscape, making them a go-to choice for small and mid-sized businesses alike.
Bonus: Their policies are customizable and backed by A++ financial strength ratings, ensuring that you receive not only comprehensive coverage tailored to your unique needs but also the peace of mind that comes from choosing a provider with a stellar reputation. This combination of personalization and reliability allows you to confidently navigate life’s uncertainties, knowing that your financial future is protected by an institution recognized for its stability and commitment to customer satisfaction.
Where to find it: biBERK – General Liability Insurance
Direct-to-consumer coverage with rates from around $27.50/month, backed by an A++ insurer.
Tips to Get the Best Cheap Liability Insurance:
- Compare quotes from at least three providers
- Bundle policies for a discount (like liability + property insurance)
- Raise your deductible to lower premiums (but make sure you can afford it)
- Ask for discounts (many insurers offer savings for claim-free histories or paying annually)
- Review annually—your needs and premiums may change
- Check for loyalty programs with your current provider
- Maintain a good credit score to potentially receive better rates
- Consider usage-based insurance if applicable
- Reassess your coverage limits to ensure they align with your current needs
- Stay informed about market trends that may affect pricing
Final Thoughts
Liability insurance isn’t just a legal safeguard—it’s peace of mind that allows you to focus on growing your business without constant worry. And it doesn’t have to be expensive; many options are available for small business owners with varying budgets. Providers like NEXT, Hiscox, and Thimble offer robust, budget-friendly policies tailored to small business owners just like you, ensuring that you can find the right coverage that fits your unique needs. These policies can protect you from potential legal claims and damages, safeguarding your hard work and financial investment. With a variety of coverage options, adjusting your policy to fit specific industry requirements has never been easier, allowing you to conduct your business with confidence.
Whether you’re a handyman, web designer, retail shop owner, or health coach, there’s a low-cost liability insurance policy out there to keep your dream protected. These policies are essential for safeguarding your business against unforeseen circumstances, such as accidents, legal claims, or damage to property, which can occur at any time. By investing in the right liability insurance, you not only protect your assets but also ensure peace of mind, allowing you to focus on growing your business and serving your clients effectively. Whether you operate a small local business or an online venture, taking the time to explore and compare different policies can lead to significant savings and better coverage tailored specifically to your unique needs.
Start with a free quote today and secure your business before the unexpected happens. After all, being prepared is just smart business.
Want more tips for small business success?
Sign up for our newsletter to get weekly marketing, finance, and growth hacks for local businesses—delivered straight to your inbox. Each edition is packed with actionable insights, expert advice, and the latest industry trends that can help elevate your business to new heights. Don’t miss out on valuable resources that have the potential to transform your operations and increase your customer base. Join our community of forward-thinking entrepreneurs today and take the first step towards achieving your business dreams!
Did this article help you? Subscribe for more content like this and share it with a (Friend, Family Member, or another Small Business Owner) so we can all grow together!
Show Me Sites 
Leave a comment