How Much Is Business Insurance? The 3 Types You May Need
Small businesses face constant risks. There’s financial risk, liability risk, strategic risk, reputation risk, security risk, and business interruption risk, among others.
As a business owner, you have to find effective ways to deal with or mitigate these risks. Otherwise, your business won’t survive. One way to manage most business risks is to buy business insurance.
But how much is business insurance?
If your small business is running on a shoestring budget, you’re probably wary of spending money unnecessarily. Well, business insurance is a worthy expense.
Keep reading to learn more about the cost of business insurance as well as some insurance policies your business needs.
How Much Is Business Insurance?
There’s no specific figure for the cost of business insurance. This is because business insurance is a broad term for a wide range of insurance policies designed for businesses.
Also, the amount of money you pay for a certain insurance policy will depend on your risk level. If your business is more exposed to liability risk, for instance, you’ll likely pay higher premiums than a business with lower liability risk.
The number of insurance policies your business needs will also have a big impact on the total cost of your business insurance. Some businesses need more types of insurance policies while other businesses can get by with two or three policies.
In general, though, your business insurance can cost as little as $1,000 to hundreds of thousands of dollars per month.
So, what type of business insurance does your enterprise need?
General Liability Insurance
Almost every kind of business needs general liability insurance. If you have a brick and mortar store, there’s a chance someone can sustain an injury on your premises. If you’re selling a product, it could malfunction and injure a user.
General liability insurance protects your business from claims arising from people injured on your premises or by your product. Your insurance company will compensate the victims, as long as you have adequate liability coverage.
Property insurance is a must-have for all businesses with physical premises.
A flood, windstorm, or any other natural disaster can hit your region and destroy your premises. An electrical fault can cause a fire that razes down the building. Burglars can break in and steal your merchandise.
If any of these events occur, your property insurer will compensate you for your losses. You can then use the money to repair or rebuild the property.
There are also variations of property insurance, such as property preservation insurance. This policy is for general contractors who renovate homes.
As a small business owner with a business website, you probably don’t give much thought to cybersecurity. Did you know 43 percent of cyberattacks target small businesses like yours? What’s more, a single attack can drive you out of business within six months.
Cybersecurity insurance might not have been a must-have policy a couple of years ago, but now every business with online operations needs it. If hackers take down your business website, your cyber insurance policy carrier will compensate you for your losses.
Insure Your Business
If you were asking, “how much is business insurance?” you now have a fairly clear picture of what you can expect. The cost of business insurance depends on a range of factors.
Stay tuned to our blog for more small business tips.