Types of Business Insurance. This is an essential type of insurance that has a paid policy that helps to protect your business and you.
Types of Business Insurance
This is a very safe option when planning a business, as it avoids or prevents every form of present or potential risk. And it is advisable to get small business insurance.
Business Insurance
As we know now, small business insurance, also known as commercial insurance, helps to protect the business’s assets, property, and income. According to the Insurance Information Institute, one of the most common policies for small businesses is the business owner’s policy.
The business owner’s policy is a special type of commercial insurance that is specifically designed for small and medium-sized businesses.
This is a very important insurance policy for every small business enterprise, as it has features that protect you and your business. Features like financial liability, protections in the case of lawsuits, property damage, injuries, worker’s compensation claims, and other related events.
There are costs that are taken care of by small business insurance that could also be seen as advantages of small business insurance: costs caused by losses and accidents, property damage by natural disasters, and even expensive lawsuits. You don’t want to be sued as a small business enterprise; it would be very damaging to the business.
Types of Business Insurance
There are different types of business insurance, each having different functions in the life of an individual.
- Worker’s compensation insurance: This is the fund that is given to an employee who gets injured during work activity. The fund covers the employee’s medical costs or lost wages, and it is required by law.
- Business owners’ policy: this policy is a combination of general liability coverage, which covers bodily injury, property damage, personal or advertising injury, medical payments, and other related costs.
- Management Liability Insurance: This is the insurance that is designed to provide financial resources or funds for the business when it is sued by a lawsuit for claims of breach of duty. This is also insurance coverage like employment practice liability, which is an important protection for businesses with employees.
- Auto Insurance: If your vehicle is part of your business, it needs to be insured for safety purposes. If you need business or personal auto insurance, it all depends on the type of vehicle you use and the coverage you need.
- Cyber insurance: Every small business must sternly guide its data and technology with cyber insurance just in case they are hacked. Cyber insurance funds the cost of the damage that occurs.
- Business interruption insurance: This is also known as business income insurance as it provides for lost income and operating expenses, for example, mortgages, payroll, taxes, loan payments, and rents. This type of insurance is so helpful; even if your business is interrupted by a natural disaster, this insurance will fund its return.
Small Business Insurance Costs
The type of business insurance you choose determines your monthly or yearly cost. According to the Hartford report, the small business insurance cost you pay monthly is about $14 to $124, and it depends on the type of coverage you buy. We have different types of coverage, like general liability, commercial property, and other related costs. By purchasing all types of coverage, you get to pay $340 per month.
Small Business Insurance Health
In small business insurance, health insurance benefits are one of the major decisions for small businesses. For further or more information on small business insurance health, visit HealthCare.gov.
Small Business Insurance Providers
The top small business insurance providers are as follows:
- Clear Blue Insurance.
- CNA
- Travelers
The Average Cost of Small Business Insurance
The cost of small business insurance is on average between $30 to $340 per month, and $360 to $4000 per year. According to Forbes (sources from The Hartford, Hiscox, and Insureon), Let’s look at the average monthly cost and average annual cost according to the type of policy:
- Cyber liability insurance: the average monthly cost is $123.75, and the average annual cost is $1,485.
- General liability insurance: the average monthly cost is $30, and the average annual cost is $360.
- Inland marine insurance: the average monthly cost is $14 and the average annual cost is $169.
- Worker’s compensation: the average monthly cost is $70 and the average annual cost is $840.
- Business Interruption insurance: the average monthly cost is $40 and the average annual cost is $480.
- Commercial property insurance: the average monthly cost is $63 and the average annual cost is $756.
LLC Small Business Insurance
LLC is the abbreviation for Limited Liability Company. An LLC is a corporation that gives business owners benefits contrary to a sole proprietorship or even a general partnership as it protects personal assets.
LLC insurance is the type of insurance that protects businesses from different liability claims, like bodily injury or property damages, that are caused by businesses or employees. There are types of LLC insurance: commercial property insurance, general liability insurance, professional liability insurance, workers’ compensation insurance, business income interruption insurance, and commercial auto insurance.
Small Business Insurance Company
There are things to consider before choosing a small business insurance company. Do the following:
- Examine your legal responsibilities.
- Examine your risks.
- Determine how complete you want your insurance to be.
- Choose a suitable provider.
There are some reliable small business insurance companies that offer the best insurance for the budgeted rate; here are some of them:
- Thimble
- Huckleberry
- Hiscox
- State Farm.
- Chubb
Small Business Insurance General Liability
A general liability insurance policy, also known as business liability insurance, protects the business from claims that come from business operations and from bodily injuries, medical payments, and other related features.
Small Business Insurance Liability
Liability insurance is the type of insurance that funds the medical fees of an individual that was injured by the insured, as well as the legal fees of the individual whose goods or property were damaged by the insured. According to Insureon, the average cost of commercial general liability insurance is $42 for a month and $500 for a year.
Factors that Affect the Cost of Business Insurance
There are factors that affect the amount of money you pay for the cost of business insurance, and these are the factors:
- Where you operate your business.
- What do you sell?
- Where you live
- Your previous claim history
- Number of employees.
- Yearly income.
FAQ
What is the purpose of insurance in business?
The reason for business insurance is to protect the business from external risk. Protects the business’s financial assets and intellectual and physical property from lawsuits and property damage.
What is the most important type of insurance in business?
One of the most important or essential types of insurance in business is general liability insurance, which helps protect the business from claims that are caused by bodily injury from another individual.
What is the function of liability insurance?
Liability insurance funds the medical and legal fees; this is for the case if you have been legally responsible for another individual’s injury or maybe you caused damage to another individual’s property.
What are some examples of insurance?
There are different types of insurance: home or property insurance, disability insurance, health insurance, life insurance, and automobile insurance.
What is the premium for insurance?
The premium in insurance is the amount of money you pay for your health every month, In addition to the premium you get to pay every month, you also get to pay for deductibles, copayments, and coinsurance.
