Unravel the Mystery of Business Insurance Costs – Get the Right Coverage for Your Company
Business insurance costs differ based on the coverage a company needs. Find out the average cost of small business insurance and the elements that influence the price. You’ll also learn how to get quotes from different insurers through our help!
Average Cost of Business Insurance
Insurance companies have diverse prices depending on the coverage, size of the business, and your location. For instance, small businesses may spend less than medium-sized companies. Here’s a list of the average cost of insurance according to the coverage type.
- General liability insurance: $65-$90 per month.
- Business owner’s policy: $90-$280 per month.
- Workers’ compensation insurance: $70-$115 per month.
- Commercial auto insurance: $140-$190 per month.
- Professional liability insurance: $55-$100 per month.
Remember that insurance policies have different variations. For example, some companies offer business owner’s policy with optional add-ons like professional liability insurance and data breach insurance.
Learn why every small business needs insurance so it can survive difficulties.
Factors Affecting Business Insurance Costs
The price of small business insurance is based on multiple factors. Here are some of them.
Industry
Specific industries are associated with more heightened risks than others. So you’ll notice that high-risk companies have more expensive insurance costs. For example, construction companies are likely to pay more than accounting offices for business insurance coverage.
Size
Some insurance companies compute insurance coverage cost based on the size of your business. If you are a small startup business with only a few employees, your general liability insurance will likely be more affordable.
Location
Where does your company operate? Your location is a huge factor being considered by insurers since they must adhere to state laws, from how you buy a policy to coverage levels. It’s also crucial for commercial auto insurance costs, where businesses residing in cities have to pay more.
Prior Claims
Having a clean claims history means you have experience and demonstrate safety, resulting in a lower insurance cost.
Payroll
Your business’ payroll also greatly affects your insurance coverage cost. For instance, workers’ compensation uses payroll as a consideration for premium amount.
How to Get the Cheapest Insurance
Small businesses always try their best to look for the most cost-saving insurance. However, you shouldn’t just choose based on the price. Weigh it against the coverage to make sure you’re not underinsured. In other words, strike a balance.
The most reasonable way to save cash is to analyze your business needs. Then, adjust your deductibles or the amount you pay too much on a covered loss. Consider bundling your coverage or prepaying your annual premium to save more money in the long run.
Try getting different business insurance quotes for the coverage you need. SavingsPlay can give you the proper counseling and connect you with different insurers. By learning more about different insurance companies, you’ll be able to compare their quotes and make the right decision. We also provide help with credit solutions and saving taxes.
