Business Insurance Cost: What You Can Expect To Pay
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Business insurance is a blanket term for the multiple types of insurance a business needs to protect its employees and its assets. Therefore, the total cost depends on the types of insurance policies you choose or bundle together.
What can you expect to pay per year? The median cost for each of these common types of business insurance on a monthly basis is approximately:
Median liability insurance costs are used versus average costs. Why? Because averages take into account outliers that may be far more expensive or incredibly cheap. The median cost gives you a more accurate picture of what the cost of a liability policy may be. Please note that these are just estimated costs—the final liability insurance costs for your small business insurance is always determined by the details of your business. For example, a business with hundreds of employees will pay more for a workers’ compensation premium than a small business with a handful of employees.
So what are the factors that impact your small business insurance cost? The cost of business insurance varies depending on your industry/profession, how many employees you hire, how much liability coverage you desire, past claims, and more.
Miscellaneous factors that also impact the cost of small business insurance:
Insurance for a business doesn't have to break the bank. But small businesses often find themselves overpaying for general liability insurance, commercial auto insurance, and other policies. What are some ways small business owners can save money and pay less for commercial insurance? How do you get low-cost insurance? Here are a few ideas:
DO NOT cut corners in an effort to reduce your montly costs. You want to be sure your small business has ample coverage to protect you in case of a disaster. The last thing you need is to be underinsured.
Many business owners are totally unaware that their business insurance rate is affected by their credit report.
Statistics show that people who have high credit scores file fewer claims than those with low credit scores and that they are less likely to have traffic accidents and traffic violations. Additionally, and more intuitively, much of the history provided in a credit report can be indicative of whether a specific business will pay its business insurance premiums on time or at all.
For that reason, federal law allows an insurance company to look at items from your credit report. Business insurance companies do not have to notify you that they are utilizing your credit report, so most of the time, you won't even realize it.
Insurance companies may take into account the areas of your credit report which apply to the insurance industry. Some of the items your business insurance company will look at in this regard are:
NOTE: It is against the law for an insurance company to deny insurance coverage based on a lack of credit history.
So what can’t an insurance company use to determine business insurance coverage and rates? They are NOT allowed to look at:
Review your credit report from time to time to be sure that the information provided there is correct. A business credit report can be corrected or updated if it contains errors.
Let us help you protect your business with business insurance and keep your mind at ease. At Tivly, our goal is to help you find protection for your business as efficiently as possible by matching you with the right insurance provider. Simply give us a call at 877-907-5267 or complete the form above and one of our specialists will contact you right away.
Reviewed By: Andrea McKinney, MBA, Licensed Agent
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