The insurance for small business is usually unique to each, that’s why estimating its average cost is quite difficult without consulting first with the insurance agent. Each small business has different components that make it up, so determining the definite cost is rather tricky, as it can vary so much between businesses to another. Regardless, you can learn about the estimated average cost business insurance below.
Different Types of Small Business Insurance
Nailing down the average cost for small business insurance is not an easy task to do. Aside from the mentioned reason above, the fact that there are also several different types of insurance doesn’t make it simpler either.
To give you a general idea about insurance types for small business as well as the average cost business insurance for each, read the list below.
· General Liability Insurance
This insurance provides protections for small business owners against claims related to personal injury and property damage. The general liability insurance’s cost differs a lot according to the policy limits and operations of your business, as well as other factors, but average cost for general liability insurance for small business is for $40/month for this insurance type.
· Worker’s Comp
This insurance type is also referred as worker’s compensation, workman’s comp, or disability insurance, as it usually covers injury and illness of workers. It offers protection for medical costs due to workplace accident or other crippling conditions, as well as lawsuit protection for the employer if a worker is injured on work environment. Worker’s comp insurance is required in some states in the U.S., with the average cost of health insurance for small business owners being $40-$60/month nationwide.
· Professional Liability Insurance
Professional liability insurance is applicable for certain business kinds only, where the owners are vulnerable to claims against negligence or malpractice. In average, the small business owners may expect to pay the average cost business insurance of $50 – $60/month for this type.
Beside these primary types of insurance, there are also others that might be required for your business depending on the industry. For example, businesses that operate in healthcare industry need the specialized insurance types due to possessing more risks.
Every state in the U.S. has its own policies of business insurance. There are states that necessitate worker’s compensation, and some others states don’t. The rates of certain insurance types might also be affected by property values. There are several states that apply minimum levels of coverage, which might be different from one another. Combine the extremely individualized small business insurance’s nature and these factors, are the reasons why it is so complex to assess the average cost business insurance.
Usually, the insurers for small business offer a wide range of options regarding of the available coverage. In order to discover the right company and the correct coverage type for your business, you can consider consulting with insurance specialist. An independent agent of insurance will be able to help determining the ideal coverage from several different insurers. An even better alternative is to consult with insurance broker, who will find the solution to your best interest. They will guide you all through the details of what the insurer can offer and what you need for certain cost.
Does Your Small Business Need Insurance?
A lot of small business owners may wonder if it is really necessary to get business insurance coverage. In short, the answer is a yes due to a couple of reasons. First, there are some states that mandated certain types of insurance. Second, even if it is not legally required, in case you overlook the coverage and some types of incidents happen, you might be responsible to put out payment for employee or client lawsuit. It is not commonly the area where small businesses can afford to risk the chance.
In the end, the insurance for small business won’t ever be a matter where precise answer regarding the cost is available. Each business has varying needs according to the mentioned factors above. You need to find and decide the correct type of insurance for your business. Take your time by comparing the average cost business insurance, understand each of their pros and cons, and make sure you learn about the different options of coverage in order to find the best plan for the proper price.