Cheap business insurance

In the search for cheap business insurance, it’s important to balance the desire to save money for your business with the coverage you need. Business insurance costs can vary significantly based on a variety of factors, such as what your business does, what policies you need, and what’s covered in those policies. Generally, the more coverage you need, the more it’s likely to cost.

Saving money is always good for your business and Nationwide can customize your business insurance policy so you can rest easy knowing that you’re covered with the peace of mind that you’re getting a great rate.

What type of business insurance do I need?

It is important to know that states have different insurance requirements depending on the functions of the business. For example, businesses must purchase workers’ compensation insurance as soon as they hire their first employee in most states. Other states have minimum commercial auto insurance coverage requirements a business must have if they own 1 or more vehicles. It is important to research what insurance coverage your state requires to make sure you are covered in case of an accident.

After determining what insurance is required by law, you can find insurance to cover other business risk to help make sure your business is covered.

Common types of business insurance:

Business Owners Policy: A businessowners policy (BOP) is a cost-effective insurance policy that combines coverages such as business liability, commercial property, business income, and crime insurance into one package for businesses.

BOP policies can be general or personalized to meet your business’s industry-specific needs. Specific types of coverage include cyber liability, equipment breakdown, cyber liability, rented vehicles, and accounts receivable to name a few.

General liability insurance: General liability insurance can help protect you from the financial loss that results from property damage, bodily injury and medical expenses, and even attorney fees.

Workers' Compensation: In the event that one of your employees experiences an occupational injury or illness, workers’ compensation insurance can help cover their associated medical expenses and rehabilitation costs. Each state mandates the coverage, and the wage and medical benefits differ accordingly.

Commercial property insurance: Commercial property insurance helps businesses protect against the loss or damage of company property from causes and events like fire, explosions, wind, and hail, as well as civil disobedience and vandalism.

Commercial Auto: Helps provide coverage for injuries and damages caused by you or your employees while driving. A typical policy may include auto liability, medical payments, comprehensive coverage, collision coverage, and/or uninsured and underinsured motorist coverage.

Property Insurance: Helps protect your office whether you lease, have a free-standing building, or home office, including the physical assets.

Cyber liability: Helps to cover your business in case of a cyberattack or data breach. In addition to cyber insurance coverage, you can utilize expert guidance to navigate compliance with state breach notification laws, mitigating the risk of fines and penalties.

Errors & omissions (E&O): Helps protect your business against client lawsuits caused by alleged negligent acts, errors, or omissions. E&O insurance typically covers you, your employees, and your subcontractors.

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How much does business insurance cost?

The biggest factor when estimating how much you’re likely to pay for business insurance is the type of coverage you need. The minimum policy that nearly all businesses are required to have, and generally one of the most affordable, is general liability insurance. A cost-effective alternative is a business owners policy (BOP), which offers more coverage. A BOP bundles business liability, commercial property, business income, and equipment breakdown. While a BOP doesn’t cover all accidents, it does give businesses a lot of coverage in case of an accident or lawsuit.

Commercial auto insurance, another common insurance for small business owners, covers medical payments, property damage, and legal costs if sued. A policy can also cover theft, vandalism, and other damages or losses. Cost is calculated based on number of vehicles, vehicle type and value, employee driving records, claims history and policy deductibles and limits. Also called errors and omissions insurance, professional liability insurance protects a business in the event they are sued by a dissatisfied customer. Work mistakes and oversights, missed deadlines, undelivered services, and accusations of negligence are covered under a professional liability plan.

Factors that affect business insurance cost

With most types of business insurance, your rate comes down to a few key factors:

Industria

Some professions come with more inherent risk.  And generally, the higher the risk, the higher the premium will be. For instance, professional liability insurance will generally come at a higher cost to an architecture firm that works on public building projects than for an insurance agent with individual clients. Another factor that can affect rates is worker’s compensation insurance, which is very specific to the job function of each employee.

Where your business is located

Where your business operates can also determine your insurance rates, as state laws can dictate anything from how much coverage you’re required to have to how you go about purchasing a policy.

Size of your business

The cost of business insurance directly correlates to the number of people you employ. That’s because more employees mean more opportunities for risk. Larger businesses will pay more for business insurance than those with fewer employees, and businesses with no employees may be exempt from state workers’ compensation mandates altogether. 

Payroll and sales

The size of your annual payroll is directly correlated to the cost of workers’ compensation insurance. Insurers also use revenue to determine general liability insurance costs with the reasoning that the more customers you have, the higher the risks.

Prior claims

Insurance companies may note a history of business insurance claims because they could indicate the business is an inherently risky one, or the business is not taking the necessary steps to mitigate the level of risk.

Coverage and deductibles

The overall cost of your business insurance is affected by the amount and the circumstances under which your policy pays out. For instance, a commercial auto insurance policy that has comprehensive coverage will cost more than a policy with only the state minimum requirement.  And a general liability policy will have higher premiums if the aggregate limit is $3 million versus $1.5 million. Likewise, a policy with a lower deductible will raise the cost of business insurance as well. 

How to save on business insurance

When it comes to cheap insurance for businesses, going with the cheapest coverage doesn’t assure businesses will get the coverage they need.  Nationwide offers a range of discounts for any and every type of business insurance you may need. Talking to an independent insurance agent about your business insurance needs is the first step. And Nationwide can help you to get the coverage you’ll want to have without paying for coverage you don’t need.

Start saving today

Get a free business insurance quote from Nationwide and discover how you can have quality protection at an affordable rate.