How much do you need to insure your business? Knowing the answer to this question will help you determine which small business insurance policies you should purchase and how much they cost, so it’s important to understand all the risks of operating your business. To start, here are the five most common types of small business insurance, including an estimate of how much they cost per year based on how many employees your company has and what industry you’re in.
1) General Liability
General liability insurance is one of the most important types of business insurance you can have. It protects your business from third-party claims of bodily injury, property damage, and personal injuries, like slander and false advertising. This coverage is vital for businesses of all sizes, but it’s especially important for small businesses that may not have the resources to withstand a large lawsuit. General liability insurance typically costs between $500 and $2,000 per year, depending on the size and type of business.
2) Property Damage Liability
No matter how big or small your business is, property damage liability is always a good idea. This type of insurance protects you from damages caused by your business operations. It’s important to have because it can help cover the cost of repairs, replacements, and even legal fees if someone sues you. The cost of this insurance depends on the size and location of your business, but it’s typically around $500 per year.
3) Cyber Liability
No business is safe from a cyber attack, which is why cyber liability insurance is so important. This type of insurance can help cover the costs of a data breach, including legal fees, customer notifications, and credit monitoring services. Cyber liability insurance typically costs between $500 and $2,000 per year, depending on the size of your business.
4) Workers Compensation
No matter how big or small your business is, you are required by law to have workers’ compensation insurance if you have employees. If someone gets hurt on the job, this insurance will help cover their medical bills and lost wages. Even if you have a great safety record, it’s still a good idea to have this coverage in case of an accident. Workers’ compensation insurance can cost anywhere from $500 to $5,000 per year, depending on the size of your business and the state you’re in.
5) Auto Insurance
Auto insurance is one of the most important types of insurance for businesses. It helps protect your business from liability in the event that an employee is involved in a car accident while on the job. The cost of auto insurance will vary depending on the size and type of business, but it is typically very affordable.
Benefits of Business Insurance
- Business insurance can protect your company from lawsuits, property damage, and other unexpected events.
- It can help you attract and retain customers by showing them that you’re a responsible business owner who is prepared for the worst.
- It can give you peace of mind knowing that you’re covered in case something goes wrong.
- It can help you budget for unexpected expenses and save money in the long run.
- It’s an investment! Protecting your business with proper coverage will keep it running smoothly for years to come. As one small example, how many pairs of shoes do you have?