In 2021, the average monthly cost of a business insurance policy for new progressive customers ranged from $42 for professional liability to $68 for a business owners (bop) policy.
Notice how the cost depends on the type of policy you need. Each policy protects against specific types of risk, and these differences are factored into the price.
so can you expect to pay the median or average rate? not necessarily.
Insurers calculate the cost of your policy using several basic factors, including your profession, number of employees, and coverage needs. You can expect to pay above the average rate if you need more coverage, rent a single property, or have a history of claims. learning how these factors influence your premium can help you secure the best combination of price and protection for your situation. Call us now or start an online quote.
factors that affect your company’s insurance costs
Many factors play a role in calculating the cost of your business insurance. the most influential are often your profession, number of employees and coverage needs. these factors can vary significantly from business to business.
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Not all types of businesses carry the same amount of risk. a type of business that is known to have a higher risk can expect to pay more than a business with a lower risk. tree trimmers and contractors are examples of higher risk businesses. their work is physical and often includes using power tools on other people’s property. these factors increase exposure.
In contrast, an in-home financial advisor does not share these risks, so they will not be factored into your fee. will they pay less? probably, but not for sure. professional services are exposed to a different kind of risk and often need to take out professional liability insurance to stay safe.
number of employees
Businesses with multiple employees can expect to pay more for insurance because their claim potential is greater than a business with fewer or no employees. each additional employee increases exposure to accidents and other mishaps that can lead to a claim.
If a business has employees, it must have workers’ compensation coverage. this is required by law in almost every state and adds to the cost of insuring your business.
The amount of coverage you select has an impact on your premium. For example, a small business policy totaling $1 million/$2 million will generally cost more than a policy totaling $1 million/$1 million.
These coverage levels can generally be adjusted to meet your specific needs and affect your final rate.
These three factors represent the basics and should be familiar to all small business owners. Of course, there are other factors that can affect your business insurance costs, including:
- time in business
- and more
There’s a lot to consider when insuring your business, but getting help is easy. just try to make sure you talk to someone with experience in small business insurance. Learn what business insurance coverages you might consider for your business.
get the cheapest business insurance
Finding the cheapest business insurance policy is a top priority for the cost-conscious business owner, but always weigh price against coverage. You don’t want to pay for coverage you don’t need, but you also don’t want to be underinsured if something happens. seek balance.
To help maximize your savings, first analyze your business to understand your specific needs. be sure to include any contractual requirements and disregard any coverage not applicable. be informed.
You can save money by adjusting your deductibles. A deductible is the amount you pay out of pocket for a covered loss at the time of a claim. In general, the higher your deductible, the lower your annual premium cost. just make sure you’re comfortable paying the deductible you select.
Of course, you have questions. help take the guesswork out of finding the best combination of cost and small business insurance coverage by speaking with a licensed professional. they can guide you through the process and customize a quote specifically for your business. Call us today or start a quote online. it’s that simple.