{"id":3410,"date":"2022-10-04T22:40:55","date_gmt":"2022-10-05T03:40:55","guid":{"rendered":"https:\/\/www.northone.com\/blog\/?p=3410"},"modified":"2022-12-15T09:40:21","modified_gmt":"2022-12-15T14:40:21","slug":"small-business-insurance-costs","status":"publish","type":"post","link":"https:\/\/www.northone.com\/blog\/financial-management\/small-business-insurance-costs","title":{"rendered":"10 Small Business Insurance Costs to Know"},"content":{"rendered":"\n<p>When you own a small business, having <a href=\"https:\/\/www.northone.com\/blog\/financial-management\/how-to-get-cheap-business-liability-insurance\">business insurance<\/a> is crucial. If something goes wrong, such as an injury on your property, advertising error, or third-party property damage, you could be liable for significant sums. Understanding small business insurance costs will help you budget appropriately and figure out which type of insurance policies should you take out?<\/p>\n\n\n\n<p>General liability business insurance, professional liability, workers\u2019 compensation, and more can protect your business. If problems arise, you\u2019re less likely to have to pay costs out of your business\u2019s resources.<\/p>\n\n\n\n<p>Here is an overview of the 10 most common small business insurance policies and their associated costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"General_liability_business_insurance\"><\/span><strong>General liability business insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.northone.com\/blog\/financial-management\/what-is-general-liability-insurance\">General liability business insurance<\/a> covers issues like bodily injury, property damage, and advertising harm. Most small businesses should have some form of general liability insurance, especially if they lease or own commercial property.<\/p>\n\n\n\n<p>Depending on the type of policy you choose and the coverage amount ($1 million per occurrence and $2 million aggregate is standard), plus individual business factors, you should expect to pay $25 to $42 per month. $42 is the average amount nationwide. Insurers will consider your business type, building size, location and condition, your business\u2019s claims history and the specific policy details to arrive at your monthly premium.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Professional_liability_business_insurance\"><\/span><strong>Professional liability business insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Professional liability business insurance is often purchased by companies that provide services. This includes real estate agents, doctors, lawyers, and more. Malpractice insurance is a type of professional liability business insurance.<\/p>\n\n\n\n<p>The median cost for professional liability insurance is $59 per month, with an average cost of $97 per month. Again, this will depend on the type of policy you purchase and the coverage amount. If the insurance company deems you a \u201cgood risk,\u201d you are likely to pay less for this coverage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Workers_compensation_insurance\"><\/span><strong>Workers\u2019 compensation insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Workers\u2019 compensation insurance covers on-the-job illnesses and injuries. Most states require employers to purchase workers\u2019 compensation insurance when they have a single employee. The median cost of a workers\u2019 compensation policy is $47 per month, while the average cost is $111.<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.insureon.com\/small-business-insurance\/workers-compensation\/cost\">average cost<\/a> of a workers\u2019 compensation claim is $40,000. The insurance will also cover lost wages and disability. The cost of your policy will depend on your state, your total payroll, the industry, what kind of jobs your workers perform, and your workers\u2019 compensation claims history. Naturally, a policy for more dangerous professions will be more expensive than policies for office jobs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Commercial_property_insurance\"><\/span><strong>Commercial property insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Your building and its contents should be insured, in case of fire or other loss. <a href=\"https:\/\/www.insureon.com\/small-business-insurance\/commercial-property\/cost\">Commercial property insurance<\/a> is typically $63 per month for a $60,000 policy limit and a $1,000 deductible. Insurers will consider the size of your building, the value of its contents, and how old the property is. They\u2019ll also consider your safety and security practices, what kind of fire protection you have, and what kind of hazards you would like covered.<\/p>\n\n\n\n<p>Some businesses opt to get a general business owners\u2019 policy, which combines commercial property insurance along with general liability insurance. This often offers greater financial savings than purchasing each policy separately.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Liquor_liability_insurance\"><\/span><strong>Liquor liability insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If your business serves alcohol, you\u2019ll need <a href=\"https:\/\/www.insureon.com\/small-business-insurance\/liquor-liability\/cost\">liquor liability insurance<\/a>. These policies may be required in your state. You\u2019ll also want to make sure you follow any state-specific rules for insurance coverage. Some states, like South Carolina, require businesses that serve alcohol after 5pm to have a minimum of $1 million in coverage.<\/p>\n\n\n\n<p>Business owners can expect to pay anywhere from $255 to $2,000 per year. The costs depend on what type of establishment you\u2019re insuring. Bars are the most expensive, while retail policies are the cheapest. Again, owners often bundle these policies to save money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Special_event_insurance\"><\/span><strong>Special event insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When you host a <a href=\"https:\/\/www.insureon.com\/small-business-insurance\/special-event\/cost\">special event<\/a>, it\u2019s a good idea to take out a temporary insurance policy for the duration. Special event insurance typically ranges from $182 to $257. The length of the event, industry, location, and type of event will affect each policy cost. Typically, these policies cover up to $1 million for a single event, and $2 million in the aggregate.<\/p>\n\n\n\n<p>Expect to pay more if your event involves alcohol or potentially dangerous activities. Healthcare businesses tend to pay the most in special event insurance, while nonprofits pay the least.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cyber_liability_insurance\"><\/span><strong>Cyber liability insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Data breaches and cyberattacks can damage your reputation in your industry, and cause significant financial loss. <a href=\"https:\/\/www.insureon.com\/small-business-insurance\/cyber-liability\/cost\">Cyber liability insurance<\/a> covers losses stemming from these online attacks.<\/p>\n\n\n\n<p>Business owners should expect to pay anywhere between $1,000 to $2,000 per year, on average. The cost of a policy will depend on what kind of sensitive information you collect and store, as well as the policy limit. Keep in mind that there are two different types of insurance: first party and third party. The nature of your business will determine which type of insurance to get.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Commercial_auto_insurance\"><\/span><strong>Commercial auto insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When your company owns its own vehicles, you\u2019ll need to insure them under a commercial auto insurance policy. The median cost is about $<a href=\"https:\/\/www.insureon.com\/small-business-insurance\/commercial-auto\/cost\">142 per month<\/a> for a $1 million policy. However, the premium is affected by how many vehicles you own, their value, how they\u2019re used, and more.<\/p>\n\n\n\n<p>The type of coverage you choose will also affect the policy costs. Finally, insurers will consider your employees\u2019 driving records\u2014the better they are, the less you\u2019re likely to pay.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Directors_and_officers_insurance\"><\/span><strong>Directors and officers insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Directors and officers insurance protects company executives. If you\u2019re sued for making a bad decision, leading to financial loss, this insurance can cover the expenses. The cost of a directors and officers policy largely depends on your company size, revenue, debt, type of company, and claims history.<\/p>\n\n\n\n<p>The median directors and officers premium is $<a href=\"https:\/\/www.insureon.com\/small-business-insurance\/directors-officers\/cost\">103 per month<\/a>. The majority of small businesses pay under $1,500 per year for this type of insurance policy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_interruption_insurance\"><\/span><strong>Business interruption insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Finally, business interruption insurance helps cover temporary closures and catastrophic losses. If your company is forced to close due to fire, flooding, or other disaster, these policies will help cover the lost revenue and more.<\/p>\n\n\n\n<p>Expect to pay between <a href=\"https:\/\/www.insureon.com\/small-business-insurance\/business-interruption\/cost\">$40 and $130<\/a> per month. However, businesses with higher levels of risk or more valuable commercial property may pay more. You may be able to bundle this type of insurance with your commercial property insurance, to save money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Find_the_financial_support_you_need\"><\/span><strong>Find the financial support you need<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Owning and operating a business comes with a lot of financial considerations. Finding robust, affordable insurance policies is just one facet of your overall duties. This overview should help you become familiar with common policies to invest in. The better protected you are, the more likely your company will thrive.<\/p>\n\n\n\n<div class=\"wp-block-columns emailcapturecontainer has-background is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\" style=\"background-color:#edce81\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:55%\"><\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:45%\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" data-expand=\"1\" src=\"https:\/\/www.northone.com\/blog\/wp-content\/plugins\/media-ace\/includes\/lazy-load\/images\/blank.png\" data-src=\"https:\/\/www.northone.com\/blog\/wp-content\/uploads\/2021\/10\/N1-DeviceLockup.png\" alt=\"\" class=\"lazyload wp-image-3928\"\/><\/figure>\n<\/div><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When you own a small business, having business insurance is crucial. If something goes wrong, such as an injury on your property, advertising error, or third-party property damage, you could&#8230;<\/p>\n","protected":false},"author":1,"featured_media":3411,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[138],"tags":[],"class_list":["post-3410","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>10 Small Business Insurance Costs to Know - North One<\/title>\n<meta name=\"description\" content=\"Learn about the 10 difference types of small business insurance and their costs from general liability to cyber liability insurance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.northone.com\/blog\/financial-management\/small-business-insurance-costs\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"10 Small Business Insurance Costs to Know - North One\" \/>\n<meta property=\"og:description\" content=\"Learn about the 10 difference types of small business insurance and their costs from general liability to cyber liability insurance.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.northone.com\/blog\/financial-management\/small-business-insurance-costs\" \/>\n<meta property=\"og:site_name\" content=\"North One Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/northonebanking\/\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-05T03:40:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-15T14:40:21+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.northone.com\/blog\/wp-content\/uploads\/2022\/10\/TK-Small-Business-Insurance-Costs-to-Know.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"863\" \/>\n\t<meta property=\"og:image:height\" content=\"558\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Eytan Bensoussan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@NorthOneApp\" \/>\n<meta name=\"twitter:site\" content=\"@NorthOneApp\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Eytan Bensoussan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/financial-management\\\/small-business-insurance-costs#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/financial-management\\\/small-business-insurance-costs\"},\"author\":{\"name\":\"Eytan Bensoussan\",\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/#\\\/schema\\\/person\\\/1f56df6a45f6591303799c10338998f3\"},\"headline\":\"10 Small Business Insurance Costs to Know\",\"datePublished\":\"2022-10-05T03:40:55+00:00\",\"dateModified\":\"2022-12-15T14:40:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/financial-management\\\/small-business-insurance-costs\"},\"wordCount\":1086,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/financial-management\\\/small-business-insurance-costs#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/wp-content\\\/uploads\\\/2022\\\/10\\\/TK-Small-Business-Insurance-Costs-to-Know.jpeg\",\"articleSection\":[\"Financial Management\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.northone.com\\\/blog\\\/financial-management\\\/small-business-insurance-costs#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/financial-management\\\/small-business-insurance-costs\",\"url\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/financial-management\\\/small-business-insurance-costs\",\"name\":\"10 Small Business Insurance Costs to Know - 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