If you’re preparing your business finances and wondering how much you will have to spend on insurance, it’s important to understand that the costs vary greatly depending on the type of industry you’re involved in, your geographical location, profession, size of business, and so forth. In general, however, basic business insurance cost for liability is around $30 – $40 a month for small businesses.
Of course, most businesses are going to need more than basic liability insurance, or a business owner’s policy (BOP). If you have employees, for instance, expect to pay $60+ a month. The more risky the industry is, the more you’ll have to pay. The construction industry is obviously extremely costly where insurance is concerned.
If you are a freelancer or contractor, professional liability is going to be less than the basic business insurance cost.
Averages / basic costs do not tell the whole story, as each individual business is unique. There might be a few things about your company or your own work as a professional that make you more of a “risk”, which means you’ll end up paying more.
Basic Business Insurance Cost Estimation
The only way to get an idea of what you might end up paying is to take advantage of free estimate tools online, and to research what other companies of your size in your own industry have to pay.
Don’t think that just because you run a home business and work in the comfort of your own office that your basic business insurance cost will be cheap. There are some risks associated with every type of industry. For instance, you might have to worry about your computer or phone getting hacked and your clients’ personal data stolen, or you could wind up getting accused of copyright infringement or slander. People will try and sue anybody for any reason these days.
In some business insurance policies, there is an aggregate limit. This is something you need to understand as well. This refers to the most amount of money the insurance company will pay toward a claim during the term of the policy. If your policy is $10,000 / $10,000 aggregate, this means you are covered for up to $10,000 per individual incident, but for no more than $10,000 per policy term. As for the length of the policy term, that also varies depending on the carrier, although it’s usually annually.
Learn more details about basic business insurance cost at Hiscox Business Insurance. It’s the best place to do research and compare commercial insurance costs. You can also get a quote and find a policy that is tailored towards your specific needs.