Business Insurance

Small Business Liability Insurance Cost Guide: What are the Highest-Risk Industries? How Can You Save?

Every business needs liability insurance, no matter how small. No company is so small that it doesn’t need some level of liability protection. Cost varies depending on the industry, business size, type of company, location, and so forth. However, if there is an average, its estimate could be around the $30 – $50 per month. To know for sure, you’ll need to get a quote for small business liability insurance cost.

Annually, 48% of small business owners pay between $300 – $600 for their policies. The percentage of them that pay less than $300 is only around 17%. Industries like instruction and those that require much time in the wilderness, such as forestry and fishing (potentially rough waters, sharks, lightning, etc.), are among the highest-risk. Photography and video-related businesses tend to pay the least amount in insurance as they are very low-risk.

There is no one size fits all, just as there are no two businesses the same, regardless of industry and size. Factors such as annual revenue and payroll costs could also affect the kinds of quotes you get.

You might be able to do things to bring the rates down if you think the quotes you are getting are too high. For instance, proactively managing your risks and showing proof of it will be in your favor. Not just where small business liability insurance cost is concerned. It’ll also be useful for PR. Some things you can do include investing in a security system, minimizing hazards in the workplace or on the premises of a job site, develop a quality safety training program for employees, and so forth.

Small Business Liability Insurance Cost By Policy Type

The type of policy that most business owners get – at least when first starting out – is a 2-in-1 business owner’s policy (BOP). This policy protects the business location, store contents, merchandise, and equipment, as well as claims from an injured person on the premises. It might also help cover losses due to business interruption expenses.

We also recommend commercial auto insurance and professional liability insurance in addition to a BOP. Suppose you’re self-employed and don’t have any employees working for you, except for the occasional contract worker helping you with projects. In that case, you probably won’t need full coverage. Commercial auto insurance might not be necessary if you work from home and have no need to drive to a client’s house or other third-party property for work.

Whatever your specifics are, you can learn more about small business liability insurance cost at Hiscox. All you have to do is answer a few questions and receive some free details about which policy would be best for your needs.

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