With over 30 million small businesses in the United States, it can be intimidating to get started.
Between hiring, loans, business plans, and more, the last thing that you want to do is worry about insurance, but it is not something to be ignored!
Keep reading to learn about small business insurance cost and the types of insurance that you need.
Important Info About Small Business Insurance Costs
It’s important that you do your research to learn what types of insurance are required for your specific business and in your specific area. Some states require certain types of insurance while others do not. Be sure to consult an attorney or insurance agent for advice on your situation.
Additionally, please note that the prices will vary by insurer and business type. These are simply estimates.
Workers’ Compensation
Required almost everywhere, workers’ compensation keeps your business safe if you’re ever sued for a work-related injury.
Price: $0.75 to $3 per month for every $100 of pay
Unemployment Insurance
Unemployment insurance is another one required by most states. It guarantees a worker part of their paycheck if their job is lost.
Price: Varies by state (for most businesses 0.6% federal tax rate)
Disability Insurance
Another type of insurance that is generally required, this insurance guarantees a worker pay if they become ill or disabled.
Price: 0.25% to 0.5% of payroll
Key Person Insurance
While key person insurance is not required, it can be useful if you have a very important person in your business. It replaces lost income in the event of an owner or key executive’s death or sudden inability to work.
Price: Less than $1,000 per year
General Liability Insurance
General liability insurance is not required but is a good one to have. Should your business cause loss to a client, vendor, or another business, you are not liable for paying.
Price: $400 to $600 per year
Commercial Property Insurance
This is not required but is a type of insurance worth getting if you have a brick and mortar business. It protects against theft, fire, and vandalism, as well as some weather-related events that could cause loss.
Price: $1,000 to $2,000 per year
Product Liability Insurance
Product liability insurance protects again flaws associated with your product. This could be a manufacturing error, lack of sufficient instructions, or a design flaw that causes someone harm.
Price: $0.25 per $100 of product sales
Custom Insurance
With so many different types of insurance available, it can be incredibly hard to know what to choose. We recommend investing in custom insurance. You’ll sit down with a team and talk through all potential claims people might make against your business.
Your insurance team at attorney-led Captive Insurance will create custom insurance for you so you only have to pay one fee and never have to worry about insurance again.
With so many other things to worry about as a small business owner, you don’t need to add the management of multiple insurances to the list.
Keep Learning
Now that you know about small business insurance cost, keep learning about the small business and startup world.
