Get Great Coverage in Minutes
All it takes is a few clicks.
We can help answer the question, “How much is business insurance?” Your small business insurance cost depends on the type of business insurance coverage you’ve selected and the industry your business is in.How Is Business Insurance Calculated?
Once you’ve looked at the types of business insurance you need, you can see the impact of each specific coverage cost.
Your general liability insurance costs can rely on your:
- Industry
- Square footage
- Company size
Typically, the more employees you have and the more dangerous their work, the higher the cost of general liability insurance coverage.
For professional liability insurance, your costs are typically a factor of your:
- Number of employees
- Workers’ employment statuses
- Specific business’ potential for loss
This is because the more people you employ, the more you’ll have to pay to help protect them. Full-time employees also cost more to insure than part-time.Your commercial umbrella insurance costs depend on the total amount of coverage under your policy. The higher your policy’s limit, the more it will cost you. But the better your business’ credit is, the lower your insurance price will be.
You can calculate your workers’ compensation insurance premiums per $100 of annual payroll, based on a simple formula:
Workers’ Classification Code Rate X Experience Modification Number X (Payroll/$100) = Premium.**
Your commercial property insurance can depend on your:
- Location
- Business premises’ age
- Value of your assets
If your company is in an area with frequent natural disasters, you’ll likely pay more for business property insurance. This isn’t always a bad thing, though. If a hurricane causes widespread property damage, your policy will kick in and help pay for repairs. Discover more commercial property insurance tips.
What Is the Average Cost of Business Insurance?
Many people ask what the median cost of business insurance is, but it really depends on what kind of business you have. For example, higher risk companies can expect to pay more for insurance. That’s why looking at this average isn’t always helpful for small business owners that want an estimate of their own costs. Instead, focus on the average costs in your specific industry.In many cases, it’s more realistic to plan your insurance costs based on your:
- Industry type
- Business operations’ size
- Number of employees
- Coverage needs
How Much Is Business Insurance for My Company
You can save money on business insurance by paying the cost of damages. Without it, you’ll have to pay these costs out of pocket.In most states, there are certain requirements for coverages you need. Workers’ compensation insurance is usually one of them.
Your other coverages and small business insurance costs can vary greatly based on your:
- Industry risk: Typically, riskier businesses pay more for insurance. Risk factors can include financial and physical risks to your business, employees, vendors and customers. Learn more about business insurance by industry today.
- Business location: Companies located in heavily populated areas often experience a higher likelihood of crime or vandalism which can cause your rates to go up. State business insurance requirements also vary, which can impact costs.
- Public visibility: People may target well-known businesses in the public eye more often than lesser known companies. For this reason, insurance rates may increase as you gain more of a reputation.
- Payroll size: Your payroll helps determine your workers’ compensation benefits. The larger your payroll, the higher your premium will be because there’s a higher risk for bodily injuries.
- Coverage levels: The more coverage you add to your policy and the higher the limits, the more you’ll pay. Sometimes, choosing a higher deductible can help lower your monthly or annual premiums.
Get a Quote for Business Insurance From The Hartford
We’re an insurance company you can trust to help protect your business. Learn more about what business insurance is and when to get business insurance. Or get started with a free online insurance quotes from us today.
Last Updated: July 13, 2022
** This is a simplified calculation for educational purposes only. Actual premium calculations can be more complex. Experience mods are subject to state requirements and do not apply to every policy.