15-Year Study Identifying Three Risk Tiers in Small Business Insurance Pricing

New data shows premiums ranging from $27 a month for low-hazard operators to more than $575 for high-hazard contractors, with New York pricing on its own scale.

BURBANK, Calif., May 18, 2026 /PRNewswire/ -- USA Business Insurance Services, Inc., a commercial insurance brokerage licensed in all 50 states, today released a pricing study drawn from more than 15 years of small business underwriting data. The analysis identifies three distinct risk tiers across the U.S. small commercial insurance market and shows how trade type, payroll, class code and location move the final premium number.

The study groups small businesses into easy-to-place, medium-risk and hard-to-place categories based on carrier appetite, claim severity and historical loss ratios.

"After almost two decades of writing policies for every kind of small business, the same patterns surface year after year," said Zack Avasabian, at USA Business Insurance Services. "Owners often assume their premium is set by their industry alone. The data tells a different story. Payroll, class code, subcontractor documentation and geography drive far more of the price than most buyers realize."

KEY FINDINGS

In the easy-to-place tier, general liability premiums begin near $27 a month for vending machine operators, $38 for beauty salons, $39 for online retailers, $42 for clothing stores and $45 for medical supply stores. Workers' compensation in this tier typically starts between $48 and $57 a month. Restaurants sit slightly higher at $73 for general liability and $165 for workers' comp, with liquor liability added when alcohol is sold.

The medium-risk tier covers trades where payroll and subcontracting costs sharply influence pricing. Handyman general liability begins near $39 a month and workers' comp at $120. Plumbers begin at $69 and $150. Pest control services start at $105 for general liability and $185 for workers' comp. Tattoo studios, fitness centers, recycling centers and plastic and clothing manufacturers also fall into this group, with workers' comp premiums ranging from $85 to $185 a month.

The hard-to-place tier carries the steepest pricing. Oil field welders see general liability premiums starting at $375 a month, workers' comp at $280 and commercial auto at $145. Public works contractors begin near $575 for general liability and $650 for workers' comp. Tree trimming, fire sprinkler installation, roofing and playground operations also sit in this tier, with workers' comp premiums climbing as high as $345 a month.

NEW YORK STANDS APART

The study flags New York as a state operating on its own risk meter. Pricing in the five boroughs of New York City reflects the state's Labor Law Section 240, known as the Scaffold Law, and tighter carrier appetite, particularly in construction-adjacent trades. Several standard carriers will not write certain construction classes inside the city limits at all.

WHAT MOVES THE PREMIUM

The analysis identifies five recurring premium drivers across all tiers: annual payroll, class code, gross sales, driving records and vehicle count, and subcontracting cost. Insurance requirements written into client contracts, including additional insured status and waiver of subrogation endorsements, also shift pricing. Hard-to-place accounts are often written through surplus lines carriers, which use individualized coverage forms and generally fall outside state guaranty fund protection.

"The simplest thing an owner can do before renewal is confirm three items with their agent," Zack added. "Make sure the class codes still match the work being done, that the payroll and gross sales figures are current, and that every subcontractor certificate is on file. Those three steps prevent the majority of the audit surprises we see."

FULL STUDY AVAILABLE

USA Business Insurance has published the complete pricing study, including trade-by-trade premium ranges and the operational factors that move each number, on its blog: https://www.businessinsuranceusa.com/blog/insurance/15-years-business-insurance-pricing-data

ABOUT USA BUSINESS INSURANCE SERVICES, INC.

USA Business Insurance Services, Inc. is a national independent commercial insurance brokerage serving small and mid-sized businesses in all 50 states. Headquartered in Burbank, California (CA DOI License #0L88614), the firm places general liability, workers' compensation, commercial auto, property and professional liability coverage for contractors, retailers, manufacturers, restaurants and service businesses. Trade specialties include plumbers, electricians, welders, roofing contractors, hood cleaners, handymen, pressure washers, pest control operators and dozens of other classes.

SOURCE USA Business Insurance Services, Inc.