How Much Does Business Insurance Cost?

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How Much Does Business Insurance Cost? Not only is insurance important for a car or home, but you also need insurance for your business. Insurance is important for businesses, especially small businesses. When purchasing business insurance, you need to ask yourself how much business insurance costs. Learn more about how much does business insurance cost and what company is best for small businesses.

The cost of business insurance varies widely based on the company and also depending on the size and nature of your business. Someone with more than 20 employees and a fleet of vehicles requires a different business insurance coverage compared to a solopreneur that has no employees or physical office space.

How Much Does Business Insurance Cost

The various business insurance needs come with various premiums. There are various types of coverage available and factors of rates that go with it. But the main tip is that in finding the most affordable business insurance is to compare various quotes to shop for coverage.

How Much Does Business Insurance Cost?

How Much Does Business Insurance Cost? For a small business, the cost is purchasing business insurance is about $14 to $124 a month. However, this depends on the type of insurance you purchase which includes general liability, commercial property, business interruption insurance, and more. If you purchase all the following types of insurance coverage, you might be required to pay around $340 a month.

Business Insurance Costs

Type of policyAverage monthly costAverage annual cost
General liability insurance$30$360
Commercial property insurance$63(median)$756(median)
Inland marine insurance$14(median)$169(median)
Cyber liability insurance$123.75$1,485
Business interruption insurance$40$480
Workers Compensation$70$840
Total average cost:$340.75$4,090

General Liability Insurance Cost

General liability insurance offers protection coverage from lawsuits or claims when someone gets injured on your property. However, the cost for general liability insurance is around $30 a month according to reports by the Hiscox study. The study shows that 95% of business owners pay less than $50 a month.

Factors That Affect General Liability Insurance Premiums

  • Building size
  • Location
  • Size of payroll and annual revenue
  • Claims history
  • Policy details.

Commercial Property Insurance Cost

Commercial property insurance offers protection coverage from financial losses in your business due to certain events such as fire, natural disasters, and other problems. According to Insureon, commercial property insurance cost about a median of $63 a year. But for a standard $60,000 coverage limit with a $1,000 deductible.

Factors That Affect Property Insurance Costs

  • Location
  • Building age and size
  • Type of fire protection
  • Equipment cost
  • Type of perils covered.

Business Interruption Insurance Cost

Perhaps your business was shut down due to a financial loss covered by your policy. With business interruption insurance you can receive financial funds during the time. Business interruption insurance coverage includes lost revenues, mortgage, lease or rent payments, and more.

Concerning how much business interruption costs, the average cost is between $40 and $130 per month or $500 and $1500 per year based on reports from Insureon.

Factors That Affect Business Interruption Insurance Costs  

  • Revenue
  • Industry
  • Your business property value

Inland Marine Insurance Cost

Inland marine insurance is a type of business insurance that offers business protection if something bad happens to your property or products while in transit. This coverage includes products that is been shipped. The cost is $14 per month and $169 per year according to Insureon.

Concerning the factors that affect inland marine insurance cost, equipment or product costs are the only factors that influence the cost of inland marine insurance.

Cyber Liability Insurance Cost

Cyber liability insurance offers businesses protection from financial losses that might be due to the result of cyberattacks. The coverage includes repair and rebuilding of your business as a result of a cyberattack.

The average cost of cyber liability insurance according to AdvisorSmith is around $123.75 per month or $1,485 per year. Aside from the average cost small business can pay as little as $650 per year.

Factors That Affect Cost of Cyber Liability Insurance

  • Industry
  • Your company’s revenue and costs
  • Your network security
  • The number of people that access your company system and data
  • Your claims history

Workers Compensation Insurance Cost

Workers’ compensation insurance is another type of business insurance that help employees with treatment when they get injured while working. The insurance company covers the medical expenses, lost wages, and others.

How many workers’ compensation insurance cost is around $70 per month and $840 per year for businesses with less than $300,000 in payroll costs? For most states, it’s essential to provide worker compensation even if you have at least one employee.

Factors That Affect Worker’s Compensation Insurance Cost

  • Payroll size
  • Employee job duties
  • Location.

All these following types of business insurance are estimated to cost around $340.75 a month and $4,090 a year on average. However, to ensure that your business does not fall under financial loss, you need business insurance to protect your company.

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