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<\/a><\/p>\nAfter (a lot of) research, I realized that small business insurance isn\u2019t a one-size-fits-all expense. Costs vary based on factors like industry, coverage type, and risk level. If you\u2019re currently searching for insurance, understanding common price ranges can help you navigate quotes and find the best policy for your needs.<\/p>\n
Table of Contents<\/strong><\/p>\n Many insurance companies will offer combined coverage, which I find is important for multifaceted businesses. You might need to protect your assets, employees, customers, and income. One of the most common combined policy options includes a business owner\u2019s policy (BOP), which usually includes property and liability coverage.<\/p>\n I\u2019ve learned one thing about running a business \u2014 accidents don\u2019t ask for permission. And when they happen, I don\u2019t want to be scrambling to cover costs or, worse, dealing with a lawsuit that could have been avoided with the right insurance.<\/p>\n If one of my employees gets injured on the job or a customer slips in my store, I\u2019m responsible. Without workers\u2019 comp or general liability insurance, I\u2019d be paying those medical bills out of pocket. Alarmingly, 75% of small businesses<\/a> are underinsured, leaving many owners vulnerable to such incidents.<\/p>\n And it\u2019s not just about physical injuries. I\u2019ve seen businesses grab images off the internet for their signage, thinking it\u2019s no big deal \u2014 until they\u2019re slapped with a copyright lawsuit for using something they didn\u2019t have permission for. Yet, only 17% of small businesses<\/a> have cyber insurance, exposing them to digital risks.<\/p>\n Then there are the big disasters. Think: break-ins, fires, natural disasters. If something happens to my storefront, I want to know I have the coverage to rebuild without draining my bank account.<\/p>\n Pro tip: <\/strong>Create a solid business plan to not just stay on track but also to secure the right insurance. If you need a starting point, grab HubSpot\u2019s free Business Plan Template<\/a> to lay out your mission, customers, finances, and risk strategy. Insurers love a business with a clear plan, and so will you.<\/p>\n Get Your Free Business Plan Templates Today<\/a><\/p>\n <\/a> <\/p>\n Your small business insurance coverage depends on factors like industry, location, number of employees, and the specific types of coverage needed. A sole proprietor working from home won\u2019t have the same insurance needs as a retail store with employees and foot traffic.<\/p>\n Pro tip:<\/strong> Before buying a policy, I always recommend assessing potential risks. If you handle customer data, cyber liability insurance might be crucial. If you own a storefront, general liability is a must.<\/p>\n On average, small business insurance costs between $500 to $1,500 per year (or about $42 to $125 per month). But remember, these numbers can shift based on how much coverage you choose.<\/p>\n Here\u2019s an example: If I opt for a business owner\u2019s policy (BOP) at around $57 per month, then add general liability coverage for $42 per month, my total monthly cost would be about $99.<\/p>\n Pro tip: <\/strong>Bundle your policies. Many insurers offer discounts if you purchase multiple policies together, like a BOP combined with cyber liability. I bundled mine and cut my costs by 15%.<\/p>\n Different types of insurance provide different protections, and the price varies accordingly. Some policies cover income loss or intellectual property, while others protect physical assets or provide coverage for injuries.<\/p>\n Here are some common categories of small business insurance:<\/p>\n <\/a> <\/p>\n Business insurance is important. Take workers\u2019 compensation, for example. I might pay around $50 a month, or $600 a year. That might sound like a lot until I consider that the average workers\u2019 compensation claim costs around $42,000<\/a>. That\u2019s not a risk I\u2019m willing to take. If I owned a restaurant, I\u2019d be even more cautious \u2014 burns alone can cost tens of thousands of dollars per claim.<\/p>\n Then there\u2019s commercial auto insurance. If my employees drive for work, I need coverage. Motor vehicle accidents are one of the top workplace injuries, with costs going over $90,000 per incident<\/a>. I can\u2019t afford to take that kind of financial hit, so I\u2019d rather have insurance covering me when the unexpected happens.<\/p>\n It\u2019s also tempting to think, \u201cData breaches won\u2019t happen to me,\u201d but hackers don\u2019t discriminate. If my tech stack went down due to a cyberattack, I could be locked out of my systems until I paid thousands in ransom. Worse, if customer data were stolen, I\u2019d be looking at $140-$160<\/a> per<\/a><\/em> record<\/a><\/em> compromised<\/a>. If hundreds or thousands of records get leaked, I\u2019m looking at a six- or seven-figure disaster.<\/p>\n I don\u2019t take chances with my business, and neither should you.<\/p>\n <\/a> <\/p>\n Where I run my business plays a big role in how much I\u2019ll pay for insurance. If I\u2019m in a highly populated area or somewhere prone to natural disasters, I can expect my premiums to be higher than if I were in a more rural location with fewer risks like flooding, hurricanes, or wildfires.<\/p>\n Here\u2019s a look at average small business liability insurance costs based on location:<\/p>\n <\/a> <\/p>\n What I do for a living affects my insurance costs. If I run a high-risk business \u2014 like a construction company or a brick-and-mortar store \u2014 I\u2019ll pay more than someone working solo from home, like a freelance writer.<\/p>\n Here are some average monthly premiums for a BOP in different industries:<\/p>\n\n
Importance of Small Business Insurance<\/strong><\/h3>\n
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<\/p>\nHow much does small business insurance cost?<\/strong><\/h2>\n
Average Cost for Small Business Insurance<\/strong><\/h3>\n
Small Business Insurance Costs by Type<\/strong><\/h3>\n
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Examples of Small Business Insurance Costs<\/strong><\/h2>\n
Small Business Insurance Costs by State<\/strong><\/h2>\n
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Small Business Insurance Costs by Industry<\/strong><\/h2>\n
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