For a sole proprietor looking for the cheapest business insurance, the lowest published starting figure comes from ERGO NEXT (the company behind NEXT Insurance), which says general liability starts at $19 a month for some businesses. Hiscox states that general liability starts at $30 a month. Both are floors, not quotes, and neither says what a particular sole proprietor will pay. The cheapest policy is also rarely the most complete one, so the exclusions matter as much as the starting price.
What is the cheapest business insurance for a sole proprietor?
On published starting figures alone, ERGO NEXT's $19 a month is lower than Hiscox's $30 a month. That comparison is thinner than it looks. ERGO NEXT's figure applies to some businesses, and Hiscox's is a starting point for a range that moves with business size, industry, location and coverage amount.
Premiums depend on trade, payroll, revenue and location, so a sole proprietor in a low-risk trade may land near either floor, while one in a higher-risk trade may land far above both. This page does not state any figure for a sole proprietor specifically, because none of the published figures is described as applying to one.
The practical answer is to request a quote from each for the same business and compare them on the same limit, deductible and exclusions.
The two providers, in alphabetical order
The order is alphabetical, not a ranking. Prices are as of October 13, 2026, were read at each provider's own pages, and move over time. Every figure belongs to the company that published it and is not a market rate.
Hiscox. Hiscox states that general liability starts at $30 a month. Its page names business size, industry, location and coverage amount as the things that move the figure. Treat $30 as a floor, never as a typical price. Business size is named explicitly, which is relevant to a one-person business.
NEXT Insurance. The company now brands itself ERGO NEXT. It says general liability starts at $19 a month for some businesses, and it reports that 45% of its customers pay $45 a month or less. Its trade examples run from about $20 a month for a personal trainer to about $245 a month for a restaurant. The page itself says an exact price needs a quote, so the examples show a spread and not a price.
| Hiscox | ERGO NEXT (NEXT Insurance) | |
|---|---|---|
| What it publishes | General liability from $30 a month | From $19 a month for some businesses; 45% of customers at $45 a month or less |
| What the figure describes | A starting floor | Its own customers and examples |
| What the company says moves it | Business size, industry, location, coverage amount | An exact price needs a quote |
Can the two starting prices be compared directly?
Only loosely. A starting price is the bottom of a range, and each company's range is shaped by who it insures and how it prices. A $19 floor that applies to some businesses does not mean a sole proprietor will pay less than $30 elsewhere.
ERGO NEXT's own spread shows how far trade moves the number: more than tenfold between its personal trainer and restaurant examples. For a sole proprietor, the trade is likely to matter more than the choice between these two floors.
One concession is worth making plainly. If the only question is which company publishes the lower starting figure, ERGO NEXT does. That is a point about a published floor, and it says nothing about which company will quote lower for a given business.
What does the cheapest policy leave out?
The Insurance Information Institute says bodily injury and property damage cover protects against liability for harm to others arising out of non-professional negligent acts. Personal and advertising injury covers libel, slander, false arrest, infringing on another's copyright and malicious prosecution, and medical payments cover can be triggered without legal action.
The exclusions are where a low price can mislead. The table below sets them out.
| Exclusion | What the Institute says |
|---|---|
| Workers' compensation | Excluded, can be bought as a separate policy |
| Employment practices liability | Excluded, can be bought as a separate policy |
| Pollution liability | Excluded, can be bought as an endorsement |
| Liquor liability | May be excluded; without extra cover, liquor-related claims are not protected |
| Professional liability | May be excluded |
This page does not state which of these either company can add, or at what price. Ask both the same questions, in writing, before buying.
Why does professional liability matter to a sole proprietor?
Many sole proprietors sell their own advice, design, analysis or specialist skill. That is exactly what the words "non-professional" in general liability leave out. A sole proprietor whose product is their judgment can hold a cheap general liability policy and still have their central risk uncovered.
The Institute notes that professional liability may be excluded and that a business owners policy does not cover it either. This page does not state what either company's professional liability cover includes or costs.
What about a business owners policy?
A business owners policy bundles property insurance for buildings and contents the company owns, business interruption insurance for lost income after a fire or other catastrophe, and liability protection. The Institute says it is aimed at small and mid-sized businesses that generally face the same kind and degree of risk.
Its limits are plain: "BOPs do NOT cover professional liability, auto insurance, worker's compensation or health and disability insurance." This page does not state whether either company sells one or what it costs.
What does the law require?
The U.S. Small Business Administration states that the federal government requires every business with employees to carry workers' compensation, unemployment and disability insurance. It adds that some states require additional insurance and that laws requiring insurance vary by state. A sole proprietor with no employees may face fewer requirements, but this page does not state any for a particular state.
The place to confirm is that state's own insurance department. The National Association of Insurance Commissioners publishes a small business insurance shopping tool, the Washington State Office of the Insurance Commissioner has a guide to how business insurance works, and the Texas Department of Insurance has a page on general liability insurance.
Does an LLC remove the need for a policy?
No. The SBA says limited liability protects personal assets in most instances, but that the protection has limits. The entity and the policy do different jobs, and one does not stand in for the other.
If someone runs a single-member LLC, the entity separates the business from the owner in most instances, while a policy pays for covered claims the business faces. ZenBusiness is the entity half of that pairing. It sells no insurance of any kind and is not part of the Hiscox and ERGO NEXT comparison, so choosing a policy is a separate decision.
How should a sole proprietor find the cheapest sound option?
Write a plain description of the business: the work, the equipment, whether clients visit, whether anyone helps, the revenue and the location. Give the same description to both companies, so each quote is built on the same facts.
Ask each for the same coverage amount, the limit and the deductible in writing, because this page does not state typical figures for either. Put the named exclusions to each as questions, and ask whether professional liability, workers' compensation and pollution cover can be added and at what price.
Ask who issues the policy and who handles claims. Then check the state insurance department for anything legally required, and compare totals last. A lower premium that leaves a required cover unfilled, or a gap that matters to the work, is not a saving.
Sources
- Insurance Information Institute, "Commercial general liability insurance"
- Insurance Information Institute, "What does a business owners policy (BOP) cover"
- U.S. Small Business Administration, "Get business insurance"
- National Association of Insurance Commissioners, "Small business insurance shopping tool"
- Washington State Office of the Insurance Commissioner, "Learn how business insurance works"
- Texas Department of Insurance, "General liability insurance"
This is general information rather than legal, tax or accounting advice, and requirements vary and change.