How Much Small Business Insurance Costs? [2022 Update]
Small businesses are the foundation of economical stability but it takes a lot of hard work to be successful in small businesses. Unfortunately, several factors can take the entire business down. To avoid such scenarios, you need to rely on some small business insurances. You may think that small business insurance costs are too costly but that is not the case. The cost of small business insurance depends upon your company. Everyone doesn’t need the same type of insurance to determine different factors; however, you must know the small business insurance average cost before picking any specific insurance. Keep reading to know all different aspects of insurance costs for small businesses.
Small Business Insurance Costs
The cost for small business insurance consists of policies to integrate different insurance types to give necessary business protection. The cost of plans can range from moderate to extreme depending on different components such as business details, policy choices and profession. After considering all these factors, you can estimate the average insurance cost. So, mainly the small business insurance cost is based on the policies you purchase. For example: liability is the one general policy that is used by all small companies, and its average cost is $28 per month. When you purchase additional coverage for your business, you have to pay extra for the relevant services.
How Much Does Small Business Insurance Cost per Month?
The average insurance costs for small business is about $34 to $76 per month and $400 to $800 per year. Buying more coverage can make you pay additional costs. For example, you invest in a policy for business owners that costs $100 per month and additional general liability coverage that makes you pay another $50 per month. The cost of small business insurance depends upon the business type.
Below are some common examples of small business insurance.
Business Owner Policy
The business owner policies include liability and property policies with an additional add-on. So, it costs about $50 to $100 a month.
General liability covers injury, property damage and defamation. It typically costs around $40 per month.
The worker compensation policy covers the employer’s medical expenses and work wages for illness or injuries. It costs $50 per month but it can be changed depending upon the location.
How Much Does Small Business Health Insurance Cost?
Small companies may enroll in health insurance plans for their employees. According to the Kaiser Family Foundation Survey, the health insurance cost for small businesses is usually $7,470 for a single person and $21,342 for family coverage. Most of the employees contribute to the cost of their healthcare coverage. The average range is 17% for single coverage and 27% for the family in 2022. Many companies get a grant for small businesses for health insurance purposes. Business owners want to take care of their employees by giving health insurance benefits. The insurance cost also varies depending upon several factors. For instance, the average premium cost per person for a small group is $409 per month that was $440 for an individual in 2018. It means that the small business insurance average cost for the group is much lesser as compared to an individual plan.
Startup Business Insurance Costs
Getting the right insurance for a startup is necessary. You have to pay for legal fees and claims without an insurance plan. The small business insurance costs can vary depending upon the type of business. Small startup businesses pay $1,057 per year for general liability coverage. Many business owners also prefer a business owner policy with general liability. The average cost for both coverages is around $3,135 for a year. Many factors can affect the overall cost of small business insurance such as:
It is also significant to consider that in some states, startups have to pay higher insurance rates. For example, renovation companies face more risk, so they have to pay more insurance.
Small Business Insurance Costs in Virginia
Virginia is a business friendly state. Virginia policies for small businesses are very convenient. These policies combine three types of insurance coverage for the ease of business owners:
1) General Liability Insurance
This insurance helps in business protection and its claims may come up during normal operations.
2) Commercial Property Insurance
Commercial property insurance is helpful for those who want to know how to sell a small business quickly. This insurance is beneficial to protect the rented or owned building along with equipment. So, you can easily sell your business by having an insurance record.
3) Workers' Compensation Insurance
Workers’ compensation insurance in Virginia requires businesses with more than two employees either part-time or full-time. This policy covers medical bills for work-related illnesses or injuries and it offers disability advantages to Virginia workers. By considering these kinds of factors, you have to pay small business insurance costs in Virginia; however, the average cost varies depending upon the business you have. It is always recommended to consult an expert or a guide to start a small business in VA.
When you consider small business insurance costs as an aggravating expense, you would be thankful for your investment. Despite your best efforts and being careful, there are chances of accidents for employees. In such situations, having an adequate insurance plan can give you an edge to enhance your business coverage. Therefore, you should always consider business insurances cost prior to run your business operations successfully. You can also get an SV business broker in Vienna, Virginia to know more about Virginia business insurance plans.