One of the biggest concerns many small businesses have is the cost of insurance. It’s something you absolutely need, but how much can you really afford? As with any type of insurance, there are several factors that go into evaluating the cost of small business insurance. About half of small businesses in the US pay between $400 and $600 a year for general liability insurance. However, you could still end up paying less or more per year, depending on the number of employees and the type of industry you are involved in.
High-risk industries, like construction, will have to pay higher premiums, while low-risk industries will get lower rates. There are usually ways to save, especially if you choose a good commercial insurance provider. Just use Internet search tools to get quotes. Additionally, businesses with a physical store or facility open to the public are at higher risk than professionals who work from a home office.
Businesses with physical locations open to the public generally have to pay more money for insurance in case someone is injured on the property. There are also things to worry about such as theft, dropped objects, vandalism, fire, and weather damage.
What is included in the cost of small business insurance?
Even if you operate from home, this does not mean that you are completely invulnerable to lawsuits. There is always the possibility of being accused of plagiarism, copyright infringement, defamation, etc. If you have any vehicles that are used for business, even your own, you will need insurance for that as well. Do you have employees you send out on errands? What if they are injured on the job? Or accidentally cause damage to a client’s equipment? Consider all of these factors when evaluating the cost of small business insurance.
Some business and professional insurance companies keep things simple by offering customized insurance plans for each industry. You can choose a policy that’s already designed for a small business in your industry, with the exact type of coverage you need.
There are proactive things you can do to help lower the cost of small business insurance:
• Invest in security products.
• Develop a safety training program for employees.
• Compile a list of rules for posting on social media and make sure your employees understand the rules.
• Reduce potential hazards on the property.
• Create a checklist of procedures relevant to your industry and company.
Where should you start your search for small business insurance cost? Definitely start with Hiscox Business Insurance. There are customized plans in every type of industry possible. It is easy to find the ideal solution and save money with this organization.
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