How Much Does Business Insurance Cost? Here’s The Answer

brunette female salon owner with blonde insurance agent on tabletAs a business owner, you’re rewarded for assuming risks. However, you must protect yourself against those risks.

Every day that you do business, you take a chance that something could go wrong. However, insurance protects you from the unforeseeable.

Insurance for business protects the financial assets of your company. It also protects your physical and intellectual property.

However, there are several types of insurance that you can purchase to protect your business. To learn more about your business insurance cost, keep reading.

What Is Business Insurance?

When trying to understand business insurance, it helps to take a closer look at various types of policies. By understanding the different types of insurance, you can better understand how to protect your business.

The policy, or policies, that you choose will vary based on several factors. These factors include your industry, the size of your business, your company location, and the number of your employees.

At the least, most businesses should invest in liability and property coverage. If you have employees, however, you’ll more than likely also need worker’s compensation insurance.

It’s also important to review your business insurance requirements annually. As your business expands, your insurance needs may evolve.

Liability coverage protects your business against claims for bodily injury and property damage. It will also protect your company if someone claims that your company’s advertising somehow caused them harm.

This class of insurance also includes coverage for errors and omissions. Liability insurance will cover your legal fees and settlement costs in these instances.

Depending on your industry, you may need general liability or professional liability insurance. Alternatively, a commercial umbrella or director’s and officer’s policy may prove more suited for your field.

If you employ workers, you’ll most likely need worker’s compensation insurance. This kind of insurance provides financial assistance to help your staff members recover from work-related sicknesses or injuries.

It may also provide a benefit to an employee’s family in the unfortunate case of a mortal event.

Average Business Insurance Cost

The risks associated with coverage affect the monthly cost of a policy. Insurers must factor this risk into the price of coverage. Resultantly, the cost of a policy will vary depending on the type of coverage that you need.

On average, insurance costs can range from $46 per month for professional liability to around $85 per month for worker’s compensation coverage.

Most companies paid about $68 per month for worker’s compensation coverage in 2019. Meanwhile, companies paid an average of $42 a month for professional liability coverage.

A business owner’s policy could cost as much as $80 per month, with most companies paying around $62 monthly. General liability coverage could cost $53 a month. However, most companies spend about $46 per month on this kind of policy.

It’s important to understand that these prices are averages. However, they’re not necessarily representative of what it will cost you to protect your business. The actual cost of an insurance policy will depend on your unique needs.

Furthermore, the average cost of insurance does not provide you with a complete picture of insurance costs. For instance, the average price for a business owner’s policy in 2019 was around $80.

However, the median cost was only $62. This difference is most likely present because a few businesses paid a steep price due to the high risk in their industry.

You’ll need to speak with an experienced insurance agent for an exact business insurance quote. An insurer will calculate the cost of your policy using several factors.

Still, it helps to learn how these factors can influence the cost of a policy. With this information, you can make an informed insurance buying decision.

How to Choose a Business Insurance Policy

Choosing the right insurance can prove challenging and time-consuming. However, it’s essential that you invest in enough coverage for your business.

Many business owners buy policies without understanding the intricacies of coverage. This shortcut makes buying insurance faster and provides some protection. However, the practice can lead to long-term problems.

If you are underinsured, you can leave your business exposed to financial disaster. If you’re over-insured, however, you’re wasting funds on coverage that you don’t need.

The industry you operate in will greatly affect your insurance needs. However, companies most often need the following types of insurance:

• Business owner’s umbrella policy
• General liability insurance
• Product liability insurance
• Professional liability insurance
• Property insurance
• Vehicle insurance
• Worker’s compensation

If you own physical property, you almost certainly need property insurance. This kind of coverage protects your property from threats such as fire and theft.

General liability coverage protects you from claims of bodily injury that result from using your products or services. Meanwhile, business vehicle insurance will cover transportation that your company buys, hires, or leases.

Again, a worker’s compensation policy protects your employees from injuries sustained while working. If you manufacture a product, you’ll most likely need product liability insurance if a malfunction harms one of your customers.

If you provide a professional service, professional liability insurance protects you against claims of negligence. Finally, a business owner’s umbrella policy is a combination of policies that may include property, liability, and business interruption coverage.

Place Your Insurance Needs in the Right Hands

The best way to ensure that you choose the right insurance is to work with an expert insurance agency. However, there are a lot of insurance agencies from which to choose.

Resultantly, it can prove challenging to figure out which ones are the best to protect your business interests. Nevertheless, you can’t afford to make the wrong decision.

It’s important that you find a reputable and knowledgeable insurance agency. The right agent will ensure that you have sufficient coverage to protect you from damages and losses.

Look for an insurer with experience in specialized offerings. Also, choose an insurance agency that makes it easy for you to understand and purchase policies.

It’s highly advisable that you seek referrals and reviews when choosing an insurance agent. You can learn a lot from what people say about their experience working with a particular agency.

Also, you want to choose an agency that’s within your budget. At the same time, your agency should provide exceptional service.

Finally, it’s important to choose an agent that’s experienced in working with the claims process. If something goes wrong, you’ll need compensation as soon as possible to keep your business running.

Trust Us to Protect Your Future

Now you know more about business insurance cost. What you need is a stellar insurance agency to provide you with the best business insurance.

The McMahon Insurance Agency is dedicated to ensuring that your company has the right coverage. We’ll work tirelessly to find the right protection for your business needs.

With the McMahon Insurance Agency, you can count on affordable policies that will protect your company from nearly any eventuality.

Our staff members are greatly experienced in providing policies for a range of industries as well as helping clients with the claims process.

Take the first step toward securing your business now—and in the future. Contact the McMahon Insurance Agency today at (800) 448-6340 or connect with us online.