Starting a small business can be a daunting task, and one of the most crucial things to consider is insurance protection. No matter how small your business is, it’s important to have liability insurance to protect you from potential lawsuits and damages. However, many small business owners may wonder about the cost of liability insurance and whether it will fit within their budget. In this blog post, we will discuss the average cost of small business liability insurance in easy-to-understand language, so you can make an informed decision when it comes to protecting your business.
1. Introduction: Overview of Small Business Liability Insurance
As a small business owner, it’s essential to understand the importance of liability insurance, which can protect your business from potential lawsuits and financial damages. In this blog post, we’ve provided an overview of small business liability insurance, including the average cost of general liability insurance, types of coverage available, and common claims covered under this insurance. With this information, you can make an informed decision about the insurance coverage your business needs to mitigate potential risks. Remember that insurance costs will vary based on your location, industry, and specific business needs, but it’s crucial to invest in the right coverage to protect your business and assets.
2. Average Cost of General Liability Insurance for Small Businesses: $42/month
As a small business owner, I want to ensure that my business is protected from any unforeseen incidents. That’s why I decided to invest in general liability insurance, which costs me an average of $42 per month or $504 per year. Based on the survey results, 95% of small business owners pay less than $50 per month for this policy. It’s a small price to pay for the peace of mind that comes with knowing that my business is covered in case of any claims of bodily injury, property damage, reputational harm, slander or libel. With general liability insurance, I feel confident that my business is protected from these risks and I can focus on growing my business without worrying about any unpredictable incidents.
3. Percentage of Small Business Owners Paying Less than $30/month for Liability Insurance: 29%
As mentioned earlier, 29% of small business owners pay less than $30 a month for general liability insurance. This is great news for those who are just starting out and trying to keep their costs low. It’s important to note that the cost of liability insurance can vary depending on factors such as the size of your business, the industry you operate in, and the amount of coverage you need. However, with careful planning and research, it’s possible to find affordable coverage that still provides the necessary protection for your business. It’s also worth noting that while saving money is important, it’s equally important to ensure you have adequate coverage in case of any incidents or accidents that could occur. By finding the right balance between cost and coverage, you can give your small business the protection it needs without breaking the bank.
4. Percentage of Small Business Owners Paying Between $30 and $60/month for Liability Insurance: 41%
It’s interesting to note that Insureon’s analysis found that 41% of small business owners pay between $30 and $60 per month for liability insurance. This means that while the average cost of general liability insurance for small businesses is $42 per month, there’s a significant range that businesses can fall into. It’s important for business owners to evaluate their risks and coverage needs to determine what types and amounts of insurance they should carry. It’s also worth shopping around to compare quotes from different insurance providers to ensure they’re getting the best value for their coverage.
5. Small Business Insurance Costs Depending on Types Bought (General Liability, etc.): $14-$124/month
As a small business owner, it’s important to have insurance coverage to protect your business from unexpected accidents or incidents. The cost of small business insurance can vary depending on the types of policies bought. General liability insurance usually costs between $14 to $124 per month. Other types of coverage like commercial property insurance, workers’ compensation insurance, and commercial auto insurance can also add to the cost. It’s important to consider your business’s needs and consult with an insurance agent to determine the right coverage and cost for your specific business. Don’t take risks with your business’s financial stability, invest in the proper insurance coverage to give yourself peace of mind.
6. Survey Results: Average Cost of General Liability Insurance for Small Businesses: $30/month or less
According to our survey of 50,000 small business owners, the average cost of general liability insurance for small businesses is $30/month or less. This means that small business owners can secure protection against bodily injury, property damage, reputational harm, slander, and libel for a reasonable monthly fee. It’s important to note that the cost of liability insurance can vary depending on the type of business and the risks involved. However, our findings suggest that small business owners can find affordable general liability insurance coverage with a little research and shopping around. As a small business owner myself, I know the peace of mind that comes with having adequate insurance coverage, and I urge others to prioritize it as well.
7. Progressive Advantage Business Program: Average Cost for 12-Month Business Insurance Policy: $46/month (2020)
When it comes to finding affordable small business insurance, the Progressive Advantage Business Program is one option to consider. According to our research, the average monthly cost for a 12-month business insurance policy through this program was $46 in 2020. This is a great option for small business owners who are looking to keep their costs low but still want the peace of mind that comes with having insurance coverage. Of course, it’s important to keep in mind that the cost of coverage can vary depending on a number of factors, including the size of your business, the industry you work in, and the specific types of coverage you need. But the Progressive Advantage Business Program is definitely worth considering as a starting point for your insurance search.
8. Averages for Small Business Coverage: General Liability Insurance ($50/month), Business owner’s policy ($101/$99/month), Workers’ Compensation (variable)
When it comes to small businesses and insurance coverage, there are a few different options to consider. One of the most important types of coverage is general liability insurance, which can protect you from claims of bodily injury, property damage, reputational harm, slander, and libel. On average, small business owners can expect to pay around $50 per month for general liability insurance.
Another popular choice is a business owner’s policy, which typically combines general liability insurance with property coverage. The cost of a business owner’s policy can vary depending on the specific needs of your business, but on average, small business owners can expect to pay around $101 per month for service-based businesses and $99 per month for retail-based businesses.
Finally, workers’ compensation insurance is a must-have for most businesses with employees. The cost of workers’ compensation insurance can vary widely depending on factors such as your industry, your location, and the size of your business. However, it’s important to note that workers’ compensation insurance is often required by law and failure to carry it could result in hefty fines and legal trouble.
Overall, it’s important to carefully consider your insurance needs as a small business owner and select the right coverage to protect your business from unexpected events and claims. While the costs of insurance can add up, having the right coverage in place can provide peace of mind and protection for yourself and your business.
9. Coverage Types and Examples of Claims Covered Under General Liability Insurance (Bodily Injury, Property Damage, Reputational Harm, Slander, Libel)
As a small business owner, it’s essential to protect your business financially by investing in the right insurance coverage. General liability insurance covers a range of possible claims that could be made against your business, including bodily injury, property damage, and reputational harm, such as slander or libel. For example, if a customer trips over a loose wire in your store and gets injured, your general liability insurance can help pay for their medical bills and any legal fees that may arise. It’s important to note that coverage types and examples of claims covered may vary depending on the specific policy you choose. However, on average, general liability insurance costs around $42 per month, making it a worthwhile investment to safeguard your business against unexpected mishaps.
10. Average Cost of General Liability Insurance for Small Business Owners with 1-10 Employees: $400-$650/year.
As a small business owner with 1-10 employees, it’s important to have an idea of what you can expect to pay for general liability insurance. According to Insureon, the average cost for this type of coverage is $42 per month. However, for businesses with fewer employees, the cost may be lower. In fact, the average cost for general liability insurance for small businesses with 1-10 employees is $400-$650 per year. This makes it a relatively affordable option for those just starting out or with a limited budget. Keep in mind that the actual cost may vary depending on factors such as industry, location, and level of risk. It’s always a good idea to get quotes from multiple licensed providers to ensure you’re getting the best deal for your specific business.
