Insurance for a small business typically consists of coverage for liability, property and health. Various types of small businesses can purchase a small business package that will cover many of their insurance needs. Small business insurance can be customized to include additional coverage options, which can affect the price you would pay for the policy. The average cost of a policy can vary, depending on what a business requires for coverage.
- Property insurance provides protection for various types of losses by the business, including fire, theft and vandalism. Insurance is even offered for business interruption, which helps cover expenses if a business must close temporarily. The cost of a property insurance policy depends on factors such as the type of business, where it is located and the coverage that you select.
- Liability insurance offers protection in case of injuries to customers of or visitors to a small business. The cost of this type of policy typically is based on sales and payroll estimates. For example, a business might pay $2 to $4 in liability insurance for every $1,000 of its sales. Insurers also use other factors to determine the premium's price, including previous claims and the type of business operation.
- Small businesses often provide health insurance coverage for employees. This type of insurance varies in cost, depending on the type of plan selected and other factors. Small businesses can choose from a variety of health insurance plans. A new type of coverage for small groups, HealthFirst, will soon be available in New Hampshire. The wellness-focused insurance plan will cost small businesses $4,000 to $6,000 a month, a savings of $1,000 to $2,000 a month compared with similar plans.
- A small business that buys a small business insurance policy can choose from various deductibles. The deductible is the amount that the policy holder must pay before insurance begins covering its share when a claim is filed. The costs for the policy premium can vary widely, depending on the amount that is selected for the deductible. Deductibles on a small business policy can range from $250 to $1,500 or more. A higher deductible amount lowers the cost of the premium. But it also increases out-of-pocket expenses for claims.
- The premium that is charged for a small business insurance policy can vary significantly from insurer to insurer. Ask for policy proposals from several insurers, making sure that the coverages offered are comparable, before making your choice. Insurers use a range of factors when determining how much to charge, including the location of your building, how the building is used, the structure's age as well as any discounts that might apply. A small business owner might pay $2,000 to $5,000 a year or more for insurance coverage.
评论