How Much Does Small Business Insurance Cost?

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When you start up your own business, it’s important to know about the coverage you will need and the costs associated with that coverage. For example, general liability insurance will cost around $65 per month and a BOP would cost around $99 per month.

Malhotra & Assoc. Insurance has a team of commercial insurance experts on hand to advise you on the coverage your small business needs. Contact us today to schedule a consultation.

Small Business Insurance Costs

Your small business will need insurance to cover your liability and property, which includes coverage from some of the policy types listed here.

General liability insurance has a median cost of $42 per month, with an average cost of $65 per month. General liability is crucial for any business, large or small, and protects you from lawsuits. This is the least expensive form of business insurance your small business will need.

Business Owner’s Policy (BOP) coverage has a median cost of $53 per month and an average cost of $99 per month. BOP policies bring you a combination of coverage for liability and property coverage. 

Professional liability coverage has a median cost of $59 per month and an average cost of $97 per month. Professional liability, sometimes called errors and omissions coverage, protects your business and pays for damages and lawsuits resulting from your business operations.

Workers compensation has a median cost of $47 per month and an average cost of $111 per month. Workers compensation is critical for handling the bodily injury of employees on the job. It helps pay for medical payments, lost wages, and funeral costs for any workers injured while performing their normal business operations.

Commercial umbrella coverage has a median cost of $75 per month and an average cost of $129 per month. Commercial umbrella is comprehensive coverage for your business. It covers your liability and property damage, helping to pay for lawsuits and legal costs to defend your business in court. It also protects your place of business and business assets from covered events, paying to repair or replace damaged business property.

While your small business may not need all of these different forms of coverage or might need some types of business coverage without an estimate here, your business will need the help of an experienced commercial insurance agent to determine which coverages your small business needs.

How to Save Money on Business Insurance

The quickest way to save on business insurance is to shop around. Get quotes from multiple small business insurance providers and compare their rates to find the lowest monthly premiums for the same coverage.

You can also look for policy bundling options to save on your business insurance. A common bundle is a business owners policy (BOP) which combines general liability insurance and commercial property insurance.

Your rates will vary based on your location and the risk you present as a business. Your industry may impact your business insurance costs as well. General liability insurance may be much more expensive for retail businesses than for consultants who work on their own.

Your coverage limits will also impact your rates. The higher your coverage limits, the more risk the insurance company takes on in protecting you, and the higher your premiums will be. That said, it is good practice to purchase as much coverage as you can afford. Insurance may be pricey, but lawsuits and settlements are far more expensive if you have to cover them on your own.

Give our friendly, licensed agents in Ohio, Maryland, West Virginia, and Maryland a call, so we can discuss your business insurance options with you!

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