Business Insurance

Cost of Business Insurance for Small Business: Overview of the Average Cost of Insurance for Various Types of Businesses

It’s pretty much impossible to nail down the exact cost of business insurance for small business. This fact is true because there are many small businesses in every industry all across the country, and each business has its own specific needs. As a result, each business’s financial stability and the creditworthiness and capabilities of each owner are going to differ as well.

There are different types of policies as well. The average monthly premium for a BOP (Business Owners Policy) is around $139 a month. This number is just an estimate. Professional liability’s average monthly estimate is $138 per month. Workers Comp cost a bit more, around $250 – $260 per month.

BOPs, Professional Liability coverage, and Workers Comp are “core policy types.” Depending on the industry, the cost of business insurance for small business will be a lot more or just a little bit more since some industries are far more dangerous than others.

Coverage for E&O (Errors and Omissions), for example, is around $1730 – $1740 a year for companies with ten employees or fewer. Does your business use vehicles to make deliveries, visit clients, or anything else related to the business, and not for personal use? You’ll need commercial auto insurance coverage. Approximately 44% of small business owners pay under $1,500 annually for it. On the other hand, it can exceed $3,000 a year depending on the company’s size, number of vehicles, region, and so forth.

The driving records of the employees who drive the company cars to make deliveries or visit clients will also play a role in how much you’ll pay for commercial auto insurance.

Cost of Business Insurance for Small Business for Directors

Some additional cost of business insurance for small business types to look into include Directors and officers (D&O), product liability, liquor liability, special events insurance, commercial property insurance, EPLI (Employment Practices Liability Insurance), and anything that covers specific risks that are associated with your industry, whether it’s industrial, retail, manufacturing, food-related, advertising and marketing, and so on.

The average monthly premium for a grocery store owner is around $192. Running a landscaping business or restaurant might cost you $820 – $840 per month for the premium. Marketing businesses, IT firms, and financial advisors pay an estimated $289 – $335 monthly.

Once again, these are just broad estimates. Your geographical location will likely play a significant role as well. In addition, even if you are primarily web-based, each state has its specific laws that might affect you.

You can get a more specific cost of business insurance for small business from Hiscox. You can fill out the online form, and they will get in touch. The process is fast and straightforward.

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