Buying insurance for your business has become a necessity nowadays because it covers not only your commercial building, but as well as your brand name, products, and hardworking employees. While most insurance costs depend primarily on your individual business, you can still get a good idea of how much it will cost you by looking at different data from thousands of companies. To help you out in picking the best insurance policy for your budding business, here is a guide to the costs you must consider.
Business Type, Limit, and Deductible
Without considering the industry or the policy purchased, experts find out that the average business insurance will cost small-time owners around $1,281. Over the years the median cost has only increased to $584 from $500. It can be considered positive news for many business owners because it meant that most policies are still under the thousand-dollar mark.
However, there are still factors to be taken into account, such as the kind of policy they bought for different business purchases. The cheapest plan that most firms offer is General Liability Insurance which only costs around $428 yearly. Another one is the limit wherein you decide on the coverage you want, and the firm will price it accordingly. A higher limit will cost you higher average costs. Next is the deductible, or the amount you are going to pay after the insurance company covers some of it. If you choose to get a policy with higher deductibles, then the cost of your plan will decrease.
Business Size and Industry
The size of your business can also affect your policy insurance, especially if you are planning to buy Property Insurance and General Liability Insurance. It takes into account the dimensions of your commercial building, the location of the headquarters, and the size of the lot where it is built. Next one is the industry in which your business belongs. If it considered among the low-risk companies like an accounting firm, then you may have lower premiums, as compared to a construction business This is because you are less likely to file for a claim.
Location, Revenue, and Employees
Another is the location of your business. Same business in Montana may find the premiums lower than those in California. As for the revenue, the more you earn, the higher the premiums will be. Lastly, the number of employees that you have can affect other insurance policies, such as the Workers’ Compensation Insurance, General Liability Insurance, and Professional Liability Insurance.
The type of policy you are going to get can also affect the amount you are going to pay. More coverage means more monthly premiums to pay. Shop around for different offers because you do not want to get less than what you pay for or buy more than what you need.
At Keith Sanders Insurance Group, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (254) 235-8185 or Click Here to request a free quote.