How Much Do I Have to Pay for Small Business Insurance?

The price of small business insurance varies from carrier to carrier. Basically, the cost will be unique to your exposure, and will depend on a variety of factors, including the level of insurance required, the annual turnover of the company, the number of employees in the company, the history of workplace accidents or illnesses in the company, the location, and much more.

Additionally, because small business insurance is a competitive market, different insurance companies will have different premiums.

Business property insurance premiums are most often based on a rate per $100 coverage. Certain factors that go into the premium rate are building construction, occupancy and use, public protection, neighboring exposures, and internal protection. (Think fire extinguishers and water sprinklers.)

The premium basis for general liability insurance depends on the type of business you run. For example, the premium for stores and manufacturers are based on gross sales; contracting and service-related businesses are based on payroll; apartments are based on the number of units; hotels on gross sales; and office space and property owned and leased to others are typically based on square footage areas.

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