Get customized business insurance

60 Seconds Is All You Need To Save On Small Business Insurance

We take into account a variety of factors to pair you with your match. We've worked relentlessly to research all the top insurance providers and devise a matchmaking system that finds the company (or companies) most likely to give you the best rate based on your selections. Unlike other quoting tools, that collect your data and spam you with calls, emails and mail, we don't need any form of personal information, such as Name, Phone, Email, or Address, to pair you with your match.

Small Business Insurance

How Much Can You Save?

Nothing embodies the American dream like owning a small business. Part of protecting your business is keeping insurance rates low. How much do American business owners spend on small business insurance annually? This depends on the type of coverage you receive. The average cost of general liability small business insurance in the U.S. is $780 a year, according to our analysis of small business insurance policy holders. Is this the best possible rate, though? Shopping around for other business insurance quotes can mean big savings. We’ve found that small business owners who didn’t have brand loyalty and who received small business insurance quotes from other companies are able to save as much as $240! Most small business owners will typically only opt for general liability insurance, but if you can afford it, more comprehensive policies like workers compensation or commercial umbrella policies are recommended. Savvy business owners know that the smart plan of action is to constantly be shopping for the best small business insurance quotes. It is surprisingly easy to cancel existing policies if you find one that is better suited to your small business’ insurance needs. The key is to explore all options available to you by comparing the various policies small business insurers offer.

Why Do You Need Small Business Insurance?

Small businesses use business insurance to help cover the costs of property damage and any expenses that result from liability claims. Without small business insurance, the business itself will be responsible for covering these costs. Especially for small businesses without much capital, this can cause major problems, including the potential for bankrupting your business.

  • You’re Protected Against Liability Claims
    Perhaps the biggest benefit of small business insurance is that they help your business pay for any damages that might come as the result of a lawsuit. If a customer gets injured on your property or due to an error with one of your products, they have the right to sue your company. If the court rules in their favor, you could be on the hook for thousands, if not millions of dollars.
  • It Can Prevent Lost Income
    If you purchase small business income insurance, it can help minimize lost profits. Say, for example, that a tree falls on your store, preventing you from operating for an extended period of time. If you have income insurance as a part of your small business policy, your insurance company will compensate you for the income you would have been making during the time your business is closed.

Factors That Affect Small Business Insurance Rates

A common question about homeowners insurance is what key factors contribute to your small business insurance rates? Insurance costs will vary from business to business depending on many factors. It is safe to assume that the higher risk your business is, the higher your insurance costs will be. We have outlined some of the most significant factors that will impact your premiums below.

  • Type of policy
    The type of small business insurance policy you need can affect your insurance costs. For example, general liability coverage will typically cost less than an umbrella policy. That is why it is essential to talk with an insurance expert to determine the best kind of policy given the needs of your business. This can help keep your costs down while still providing the protection you need.
  • Insurance Limits
    Like with all insurance policies, the limits you choose will have a significant impact on your rates. The higher the limits, the more coverage you have in case you have to make a claim. However, higher limits usually mean higher premiums for that coverage. Choosing the right limit for your business that provides adequate coverage without breaking the bank is a critical decision.
  • Deductibles
    Like insurance limits, the deductibles you choose for your small business insurance policies will be a factor that affects your premiums. The smaller the deductible, the more expensive the policy will be. If you choose larger deductibles, your premiums will be lower, but your out-of-pocket costs will be higher if you have a claim.
  • Your industry
    The kind of business you have plays a significant role in the cost of small business insurance. Certain types of businesses are riskier than others. For example, the premiums for a roofing company would be higher than for a company that provides Human Resource consulting.
  • Location
    Your small business insurance costs can vary based on where your business is located. Whether you are in a small town or a major city can affect the premiums you have to pay for your insurance. If you are moving locations, it can be beneficial to talk with your insurance broker before moving to see if it will positively or negatively impact your insurance premiums.
  • Claims history
    Similar to other kinds of insurance, your history of claims can affect your insurance premiums. Your history of filing claims tells an insurance company how much of a risk you are for submitting future claims. The more claims you have filed, the higher risk they consider you, which means higher premiums.

Your needs for small business insurance can vary significantly based on the kind of business you own. Small business insurance can be more complex than many individual insurance policies. This is why you should work with an experienced broker who can help you get the best pricing and the right policies to ensure you have the appropriate insurance to protect your business. Our free quote tool takes many of these factors into consideration when getting you the best rate on your small business insurance.

Facts & Questions

General liability insurance is the best and recommended choice for all small businesses. It helps a lot to cover extreme events and helps you to maintain your market reputation.

It depends on the type of insurance you have subscribed to. Usually, business insurance companies cover costs related to property damages, lost income, lawsuits, employee injuries, medical bills, business vehicle repairs, etc.

General liability insurance of your small business covers common risks that mainly include customer property damage, customer injury, and advertising injury. It helps you to cover the processes of lawsuits, judgments, and settlements.

This insurance serves and protects you from unsatisfied customers. Unsatisfied and furious customers might come across if you make mistakes, do oversights, do not deliver the work, miss deadlines, breach the contract or show negligence. IF your business is insured, the insurance company will cover the lawsuit up to the policy limits.

This insurance covers the vehicles used by your small business. Vehicles are used to carry language, drops packages, or transport goods. Your employee may come across an accident. The insurance company will help you to cover property damages, medical bills if the person was hit, and lawsuit costs if you were sued.

This insurance protects your business from employee litigation (legal action). It happens when your employee sues over an injury or illness while working for you. This insurance policy covers your employee's medical bills and covers the protection against blame imposed by the employee.

Allstate is the cheapest insurance company in America, with $30-$99 monthly business insurance cost on average.

For a growing business, it is advisable to assess your annual insurance coverage and decide following business growth. Additional policies you buy must be in line with your expenditures and revenue.

It depends on state laws and regulations. It is best practice to contact the local business insurance agent or representative to understand the legitimacy of required insurance in the state.

A personal vehicle is not covered in small business insurance; you must register it via the proper channel that complies with insurance policies. Once registered as a business vehicle, then you can use it.