About 75% of American businesses are underinsured. Should a disaster strike, these businesses won’t be prepared to handle business interruption losses.
There are many reasons why businesses are underinsured. Many cite the cost of insurance, while others don’t understand the type of coverage they have.
How much does small business insurance cost?
Keep reading to find out how much insurance can cost your small business.
The Cost of Small Business Insurance
It’s impossible to give you an exact figure as to what business insurance will cost you. It will depend on the type of business insurance you have, your industry, the number of employees you have, how much coverage you need, and your location. Insurance costs will differ from one carrier to the next.
You can get an estimate based on some data provided by some insurance carriers. One insurance carrier estimated that the average cost of general liability insurance is about $500 annually.
General liability insurance only covers bodily harm and property damage that was caused by your business. Should someone slip and fall at your office, general liability insurance would cover medical expenses for the injury.
Other Types of Business Insurance
You’re probably aware that that isn’t close to being enough to fully cover your business. There are other types of business insurance that you need for specific situations. These are the additional policies that you want to add to your general liability policy.
Workers’ Compensation Insurance
You’ll need to have workers compensation insurance if you hire employees. That’s not an option, it’s required by law in most states. Workers’ compensation coverage will cover your employees’ medical bills and lost wages if they are injured while on the job.
The policies and pricing are overseen by state labor boards. You purchase the policy through private insurance companies.
Whether you rent or own your place of business, property insurance will protect your equipment, tools, and office supplies used in day to day operations.
Property insurance can cover these things in the event of theft, fire, or in some cases, natural disasters.
The cost of property insurance can be lowered by getting a business owner’s policy. This is one insurance policy that combines general liability and property insurance.
Since most small businesses have to be online in order to function, your business might be at risk of an attack. More than half of all cyber incidents involve small businesses.
That’s because they don’t have the resources to create secure systems, and they often hold sensitive data like payment information.
Cyber insurance can cover business interruption and legal costs. It doesn’t protect you from the loss of profits in the future.
How Much Does Small Business Insurance Cost?
Small business insurance is necessary to protect your business from lawsuits and other issues.
How much does small business insurance cost? It depends on a number of factors, such as the location of the business and the industry.
You want to work with an insurance professional to make sure that you get the coverage that you need at an affordable rate.
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