Whenever you open your own business, one of the first things you should keep in mind is providing it with insurance. There are many types of insurance that a company might need. This can also lead to you spending a large sum of money on insurance. Today, we’re going to talk about the main types of insurance you should consider getting if you’re a business owner, and the average business insurance cost for each of them.
Average Business Insurance Cost
1. Property Insurance
If you’ve just rented a space for your business, or you have equipment that you use on a regular basis, you should definitely consider a property insurance. That way, in case someone tries to rob your office, or there’s a fire in the building, you won’t have to worry about losing everything. The business property insurance cost depends on how large the property is. An average sum would be $742 every year.
2. General Liability Insurance
Perhaps one of the most important types of insurance, the general liability one protects you whenever a third party claims that either you, or one of your employees or products have caused him or her either property damage or bodily injury. As in the case of the property insurance, no business will pay the same amount of money for their general liability insurance. For instance, the business insurance for startup enterprises can be around $500. On the contrary, larger firms that present more risks can even pay $15.000 annually.
3. Health Insurance
While not all businesses offer a health insurance, those who do are extremely popular among people looking for a job. That’s because having at least part of your health insurance covered by your employer can work wonders for your finances and well-being. Here too, the company health insurance cost differs according to the size of the company. For instance, the small business health insurance cost is somewhere around $3.100 each year for one employee.
4. Workers’ Compensation Insurance
This type of insurance comes into play whenever one of your employees gets injured while at work. Said employee will get a wage replacement and certain medical benefits. In turn, he or she won’t have the right to sue you for the accident. This type of insurance is very important for a lot of companies. Not only does it protect the company, but also its employees. This is especially true of companies with higher risks. The average cost of a workers’ compensation insurance is somewhere between $0.75 and $2.74 for each $100 in wages. However, the cost depends on the state where you opened your business, and the type of business you own.
5. Cyber Breach Insurance
Finally, another type of insurance worth looking into is the cyber breach one. This one protects employers from any breaches in their employee or client related data. If certain details shouldn’t be disclosed to the public, but are, this insurance will make sure you’re protected against any type of loss. The average business insurance cost of a cyber breach insurance depends on the type of business, the amount of protection you’re looking for, and the company’s revenue. Thus, you can expect to pay anything between $650 and $120.000 each year.
Always keep in mind that these are only a few of the types of insurance you should consider once you open your own business.
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