Commercial General Liability Insurance Average Cost - Small business insurance can cost anywhere between $500 and $1,000 for many small businesses with few or no employees to properly insure. This is only about $41 to $83 per month. But it really depends on your situation. We have some sample prices based on industry and type of coverage, but it's important to know that these are general estimates. Many other factors affect the price of business insurance.
If you are a small business owner you will obviously pay less for business insurance than a large corporation. The main reason is that you face less risk. The amount of risk you face is the main factor in how much your insurance costs each year. As you grow, your needs adapt and change. And probably more expensive.
Commercial General Liability Insurance Average Cost
Here are some samples of the median costs paid by our policyholders last year depending on coverage.
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Here are some samples of the average cost our policyholders paid last year depending on coverage.
The cost depends on the type of policy you need. This is because each type of policy covers you for a specific risk. And it is included in the price of the policy. But you also can't expect to pay the median or average rate. Several factors play a role here. The biggest factors are your profession, number of employees, and coverage needs.
But there are other reasons too - such as a history of claims or requiring higher coverage limits. The cost of business insurance can also vary from business to business—even within the same industry. The best way to find out how much insurance will cost is to get a quote so you can get the exact price you will pay.
We can help you get the right insurance at the lowest cost. Want to know how? We compare the best insurers at no extra cost to you. Get started now.
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There are fewer responsibilities involved when you work alone. There is more room for error when you start getting more workers involved in your operation. This is why policy rates for some types of insurance, such as workers' comp and general liability insurance, are based on salary. The higher your salary, the higher your insurance costs.
Smaller companies often pay less for insurance coverage compared to larger companies because they take less risk. In general, the higher your income, the greater your exposure to risk. Some insurance policies (like liability insurance) are partially based on your sales.
This makes sense because the more money you make, the more you lose. And the more you lose, the more insurance you need. In short, more income = more coverage = higher policy price.
Low-risk industries often get cheaper business insurance. For example, a home-based consultant pays less for general liability insurance than a florist or retailer. And a painter (who faces more physical risks) will pay more for the workforce than a virtual assistant.
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The price of business property insurance and liability insurance varies by state and zip code. For example, rural areas may have higher home ownership rates compared to urban areas. One reason is that fire departments or fire hydrants are less accessible.
However, a store in an urban area may pay more for liability insurance. This is because their location has more foot traffic compared to a country general store. More foot traffic brings more risk.
Some insurance policies (such as property, liability, or BOP) take into account the size of the building, office space and assets of your business. This makes sense because the more assets you want to protect, the more expensive your insurance will be.
Policy limits mean the maximum amount the insurance company will pay for a claim. The price of a policy with limits of $500,000 may be lower than a policy with limits of $1 million. Limits essentially explain how much coverage you need from the insurance company. The more you need, the more expensive your policy will be.
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The deductible is the amount of money you pay for a claim before an insurance company pays. If you choose a lower deductible, the price of your policy will increase. On the other hand, if you choose a higher deductible, your business insurance costs will be lower. This is because you share more risk with your insurance provider.
Each type of insurance policy covers a specific set of risks and therefore has its own set of rates. Generally, the higher the limit of liability, the higher the cost of the insurance policy. For example, general liability insurance is often less expensive than professional liability insurance because many general liability incidents are relatively simple claims. Let's say you are a dentist and a client comes to your office for a checkup. Your GL policy pays the claim if a patient trips on the stairs and breaks their wrist. But if you break a patient's tooth, your PL policy covers a malpractice suit. And it is more expensive in many cases. This is why general liability is less expensive than professional liability insurance.
Different professions face different risks. A bookkeeper faces less physical danger than a construction worker. Therefore, labor costs are lower for bookkeepers than construction workers. However, a bookkeeper is likely to handle more sensitive information than a construction worker, so their cyber liability policy may be more expensive.
If the accountant works remotely, and doesn't have a lot of personal interaction with clients, their general liability policy will be lower than that of a construction worker. This is because contractors work on job sites and interact with clients' property. Therefore, there is an increased risk of property damage and bodily injury.
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Consultants, architects, and engineers tend to have higher professional liability premiums than designers, writers, and small business owners because they provide expert advice and services. This is because they are more at risk for claims related to negligence and professional mistakes.
Insurance companies often raise rates in the industry as a whole when more people file claims in the same area. So, let's go back to our example of the accountant and the contractor. More contractors file work-related illness or injury claims than bookkeepers. Therefore, the worker classification rate for a construction worker is higher than that of a clerical worker.
However, if few claims are filed in your industry, insurance companies may lower rates based on good claims performance.
Insurance rates depend on the level of risk covered by the policy. Those considering liability insurance are looking to cover a variety of liabilities than workers' compensation carriers. Higher risks mean more potential for claims. This is why some insurances are more expensive than others.
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Liability insurance is the first type of insurance that many business owners buy, because it provides a good base protection. General liability insurance covers a variety of incidents, including physical claims such as injury or damage to property, as well as non-physical risks such as copyright infringement, libel, slander, and false advertising. Court costs are also covered by this policy if you face a lawsuit.
On average, small business owners with between 1-10 employees typically pay between $400 and $650 per year for a general liability policy. It comes to about $33 to $54 a month to insure.
Depending on your line of work, general liability insurance prices can vary. The more you interact with the public the more valuable the policy is. This is because GL covers third party damage (slips and falls) and property damage. The higher your risk of a claim the higher the cost of your insurance. See the average cost range of the profession in the table below.
Professional liability (also known as errors and omissions or E&O) is important for anyone providing expert advice or services to clients. It can be dangerous when people rely on your expertise. And you may face a lawsuit from an angry customer at some point in your career.
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Professional liability insurance covers negligence, failure to provide promised services, professional errors, and court costs (if you face a lawsuit).
Professional liability (e&o) protects you from claims that your business made a mistake or made a mistake when providing professional services. Most small operations can expect to pay between $600 and $1,800 per year. However, the average policy is about $900 per year (or $75/month) for professional liability (ie errors and omissions).
The cost of your insurance depends a lot on what you do. The insurance company will assess these risk factors when considering the price of your policy. The more exposure you have, the more it costs.
The level of limits you choose for your policy will affect the price of the cover. The higher the limits, the more you will spend.
Business Property Insurance Policy & Coverage
Most professionals rely on some type of device, tool or piece of equipment to successfully complete their work. Commercial property insurance covers the replacement or repair of commercial property in the event of a natural disaster, theft, fire, or flood.
The price depends on the value of the items you want to insure, but if you're a modest operation, you could pay as little as $400 per year. That's only $33 a month for property insurance. However,
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