One of the biggest concerns for many small businesses is the cost of insurance. It’s something you absolutely need, but how much of it can you really afford? As with any type of insurance, there are a number of factors that go into evaluating small business insurance costs. About half of small businesses in the U.S. pay about $400 to $600 annually for general liability insurance. However, depending on the number of employees and the type of industry you are in, you may pay less or more per year.
High-risk industries such as construction face higher premiums, while low-risk industries receive lower premiums. There are usually ways to save – especially if you choose a good commercial insurer. Simply use the search functions on the Internet to obtain offers. Additionally, businesses with a physical, brick-and-mortar store or facility open to the public are at greater risk than professionals who work from home.
Businesses with locations open to the public typically have to pay more money for insurance in case someone is ever injured on the property. There are also things like theft, falling objects, vandalism, fire, and weather damage to worry about.
What is included in small business insurance costs?
Even if you operate from home, that doesn’t mean you’re completely immune from lawsuits. There is always a chance that you could be accused of things like plagiarism, copyright infringement, defamation, etc. If you have a vehicle used for business, even if it is your own, you will need insurance for that too. Do you have employees that you send to run errands? What happens if they get injured at work? Or accidentally damage a customer’s equipment? Consider all of these factors when evaluating small business insurance costs.
Some business and freelance insurance companies simplify things by offering individual insurance plans for each industry. You can choose a policy that is already tailored to a small business in your industry and offers exactly the coverage you need.
There are proactive steps you can take to reduce 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? Small Business Insurance Costs? Be sure to start with Hiscox Business Insurance. There are customized plans for every possible industry. With this organization it is easy to find the ideal solution and save money.
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