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How to Choose A Business Insurance Provider

Rachel Present Schreter | Feb 21, 2018

Although it can seem like just one more expense to get yourself high-quality business insurance, general business insurance protects you from huge costs if your business is sued, someone gets injured or something happens to your business. It’s illegal to run a business without certain types of basic business insurance, though that varies widely from state to state. Here is the business insurance cost information you need to know how to choose a business insurance provider.

How Much Is Business Insurance?

Before getting liability insurance for your business, you should do some shopping around to compare affordable options. The premium cost varies depending on the size of your business, what industry you’re in and what assets you own.

Workers’ compensation, unemployment and disability insurance (in some states) are calculated as a percentage of your employees’ annual salary. For workers’ compensation, the percentage varies depending on how risky their job is. It could be anything from 1.25% of every $100 for an administrative professional to over 10% for a job like a roofer.

Affordable liability insurance for a small business can cost a single personal trainer less than $150 annually, but if you work in a high-liability industry such as landscaping and have multiple employees, you can expect to pay considerably more.

Different business insurance quotes also include different levels of benefits. The deductible you agree upon and the policy limits also affect the final cost of business insurance.

Is the Insurance Provider Reliable?

Before you look at the different types of insurance policies offered by insurance companies, check out the insurance company itself and figure out how to choose a business insurance provider. While business insurance cost is significant, it’s not the only factor to consider.

Look for a company with a solid reputation, positive reviews from users, and plenty of assets to stand behind its insurance policies. For instance, here at Next Insurance, we are explicit that we partner with major players with billions in assets to make certain that we’ll be able to cover our customers. Insurance companies also need to be licensed by your state to provide business insurance, and should be able to give you their license number in each state where they operate.

What Insurance Policies Are Offered?

There are many insurance options for small business owners, and the average cost of liability insurance for small business can vary.  You should consider the average cost of small business insurance, both general liability insurance cost, as well as workers’ compensation, disability and unemployment insurance, which cover your business if you or any of your employees is hurt or injured at work.

choosing a business insurance company

  • General liability insurance for small business to protect you if you are sued for bodily injury, slander or libel or if your property or equipment is damaged.
  • Product liability insurance for businesses that sell a product. This protects you from liability if your product is defective or causes damage or injury.
  • Professional liability insurance covers businesses for malpractice, mistakes or negligence.
  • Commercial property insurance to add coverage for damage to the business premises.
  • Home-based business insurance fills the same need as commercial property insurance, but it’s for businesses that are run out of the home.

Even though you might not need every type of insurance policy right when you open your doors, if you choose a company that offers many different types of business insurance you’ll be able to add them as time goes on. Many insurance companies offer low cost business insurance to small businesses in a bundle called the Business Owner’s Policy (BOP), which includes many of the above small business policies.

How Is Your Offer?

In addition to comparing prices and determining the average cost of business insurance, you should check how the insurance company calculates its quotes. It should be transparent about what issues it considers, including the size of your business and which industry you are in.

It should also be explicit about what is included in your policy, and what’s not.

Ideally, the insurance company should use an advanced algorithm to assess your business and give you a fast quote in response.

Are Customers Happy?

Reading customer reviews is one of the best ways to decide how to choose business insurance. Genuine reviews from real clients will tell you how quickly the insurance company settles claims, if there is good customer support, how easy it is to understand the insurance process and more.

When choosing the best business insurance companies for small business, you should not just compare prices but also check out how reliable the insurance company is, how it calculate prices and what kind of reviews it gets before you take out a small business insurance policy.

Authors

  • Sofya PogrebSofya Pogreb
  • Sanjay BiswasSanjay Biswas
  • Natalie CutlerNatalie Cutler
  • Rachel Present SchreterRachel Present Schreter
  • Guy GoldsteinGuy Goldstein
  • Alon HuriAlon Huri
  • Evyatar SagieEvyatar Sagie
  • Zeke ScherlZeke Scherl
  • Annie RyanAnnie Ryan
Rachel Present Schreter
Rachel Present Schreter | Author
Rachel is passionate about helping small businesses get the tools they need to succeed. Rachel is a marketing guru with years of experience working with tech companies, non-profits and small businesses to ensure that they are reaching the right audiences with their products.

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Authors

  • Sofya PogrebSofya Pogreb
  • Sanjay BiswasSanjay Biswas
  • Natalie CutlerNatalie Cutler
  • Rachel Present SchreterRachel Present Schreter
  • Guy GoldsteinGuy Goldstein
  • Alon HuriAlon Huri
  • Evyatar SagieEvyatar Sagie
  • Zeke ScherlZeke Scherl
  • Annie RyanAnnie Ryan

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