How Much Does Business Insurance Cost? The Prices Explained

Are you considering taking out business insurance? Maybe your employees are prone to accidents and you want to make sure they are properly protected.

But how much does business insurance cost in this time of the Coronavirus and lockdowns? How can you make sure you don’t lose your insurance because of a Covid loophole? What kind of factors can make insurance for a small business more expensive. How do you be fair to your employees whilst keeping costs down?

Here’s everything you need to know about the cost of small business insurance.

What Type of Business? 

One of the key factors in determining what type of business insurance you can get is what type of business you run. Do all of your employees now work from home? Then your business insurance expenses will be minimal.

If, however, you operate a business that has a large office or you have a factory with employees who regularly operate heavy equipment or a furnace, then your costs increase considerably. If your business is customer-focused and you have bricks and mortar shop-front, then you might need to factor in business interruption insurance if you’ve been subject to a lockdown in your area.

Specialized Insurance 

You might also need specialized insurance if you are a legal firm that represents clients and gives out legal advice to prevent you from being sued if your lawyers give out the wrong advice or they are assaulted by their clients.

Publishers might also need specialized insurance, as they print material that other publishers might take offense to and sue for libel.

One specialized insurance you might want to consider is key man insurance. This is small business insurance for those with people in their business that they just cannot do without (i.e., the Steve Jobs or Bill Gates of your business). If they are involved in an accident or die, your business will need to continue without their input and you may lose a lot of money.

How Many Employees? 

Another key factor in determining the cost of insurance is how many employees you have in your business. The more employees you have, the more people your business is responsible for them.

The status of your employees is also important. If you employ all of your workers full-time, then you will be more liable than if you hire a whole host of freelancers or part-time workers. Make sure it is clear what type of workers you employ in your contract.

Whether your employees will all work from home or work in an office also makes a big difference. In an office setting, anything from an employee slipping outside a bathroom to an employee being involved in an accident on the premises can leave you liable.

At home, employees are responsible for their own environment.

Business Insurance Cost Varies

Business insurance cost in the 2020s varies from business to business. This is because every company operates differently and has different areas they will need to consider insurance for.

If your employees work from home now and will continue to do so, then this could reduce your insurance bill. If you have a big office, your business insurance cost may be higher.

Interested in learning more about insurance? If so, be sure to check out the rest of our site.