One of the biggest concerns many small businesses have is the cost of insurance. It’s something you absolutely need, but how much can you really afford? As with any type of insurance, there are a number of factors that go into evaluating the cost of small business insurance. About half of small businesses in the US pay between $400 and $600 a year for general liability insurance. However, you could still end up paying less or more per year, depending on the number of employees and the type of industry you’re involved in.
High-risk industries like construction will be stuck with higher premiums, while low-risk industries will get the lowest rates. There are usually ways to save, especially if you choose a good business insurance provider. Simply use internet search tools to get quotes. Additionally, businesses with a brick-and-mortar store or facility open to the public are more at risk than professionals working from a home office.
Businesses with physical locations open to the public generally have to pay more money for insurance in the event someone is injured on the property. There are also things like theft, dropped objects, vandalism, fire, and weather damage to worry about.
What does the cost of small business insurance include?
Even if you operate from home, this does not mean that you are completely invulnerable to lawsuits. There is always the possibility of being accused of things like plagiarism, copyright infringement, slander, etc. If you have a vehicle that is used for business, even if it is your own, you will need insurance for that as well. Do you have employees you send out on errands? What if they are injured at work? Or accidentally damage a customer’s equipment? Take all of these factors into account when evaluating the cost of small business insurance.
Some business and professional insurance companies keep things simple by offering custom insurance plans for each industry. You can choose a policy that’s already designed for a small business in your industry, with the exact type of coverage you need.
There are proactive things you can do to help lower the cost of small business insurance:
• Invest in security products.
• Develop a safety training program for employees
• Compile a list of rules for posting on social media and make sure your employees understand the rules.
• Reduce potential hazards on the property
• Create a checklist of procedures relevant to your industry and company.
Where should you start your search for the cost of small business insurance? Definitely start with Hiscox Business Insurance. There are custom plans in every kind of industry possible. It’s easy to find the ideal solution and save money with this organization.
