How Much Will Business Insurance Cost?

No matter how profitable your business is, there will always be a threat to your livelihood. Business insurance was created as a safeguard against this, with multiple types designed for specific adverse circumstances. Business insurance allows you to focus on what you do best, not worst case scenarios outside your control.

What Influences Cost?

There’s not one set cost for business insurance. There are only averages, because different businesses have their own degrees of risk. Insurance companies assess businesses on a case-by-case basis.

Factors involved in determining business insurance costs include:

  • Size of business
  • Area of specialty
  • Number of employees
  • Business location
  • Claims history
  • Revenue
  • Desired coverage

What Businesses Will Pay More?

Large-scale businesses with potentially dangerous work environments will have higher rates. They’ll pay more because of a greater risk of employee injury, and thus a greater likelihood of workers compensation claims. As a business grows, there are more employees to account for.

Insurers also look at averages of claims where the business is located. The number of claims within the business itself is also taken into account, because it gives insurers an idea of what to expect going forward.

And like any policy, the more coverage you enroll in, the higher your premiums will be. Premiums are also tied to deductibles – if you choose a low deductible (meaning you pay less out-of-pocket before coverage kicks in), your premiums will also be higher.

What Are The Types Of Business Insurance Coverage?

Business insurance coverage includes:

  • General liability
  • Commercial property
  • Professional liability
  • Workers compensation
  • Commercial auto
  • Business Owner Policy (BOP)

General liability protects you in legal cases, such as when a customer or client suffers an injury on business premises.

Commercial property insurance covers the building itself, as well as contents in it. Damages from fires and storms are common, and business insurance spares you from having to pay out-of-pocket to replace what was lost.

Professional liability handles legal expenses for any lawsuits against you due to professional wrongdoing.

Workers compensation covers medical expenses and lost wages for employees who suffer injuries at the workplace.

If you have company vehicles, commercial auto provides coverage in case any of the vehicles are involved in an accident or get stolen.

BOP is a comprehensive form of coverage, including liability, property, and business interruption coverage.

How Much Can I Expect To Pay?

There’s no exact figure for what you’ll pay, as there are several variables. However, here are some monthly costs that companies typically have for these policies:

  • General liability – $53
  • Commercial property – $41.67 (based on $500 per year)
  • Professional liability – $46
  • Commercial auto – $187
  • BOP – $84

Get Your Best Coverage At The Lowest Rate

At All Things Insurance, you’re our number one priority. No matter what type of business you own, the number of employees you have, or the area in which you operate, your lowest rates will be here. Call us today at (763) 645-5450 to find out more.