At first glance, it looks like another expense that the business cannot afford, but high-quality small business insurance protect you from a lot of unwanted circumstances in the future like astronomical costs of business lawsuits, possible injuries of employees, or people and the like. Keep in mind that it’s against the law to operate a business without the prescribed basic small business insurance but it differs from one state to the next. Now, insurance seems more like a shield than an expense and although you’re excited to sign up for one, take note of the following information that you need in choosing the best small business insurance pa provider for you:
How Much will the Business Insurance Cost?
Before signing up for a small business liability insurance, it’s best to have a look around and see what are available in your price point. Insurance premiums heavily rely on the overall size of the business as well as the industry it belongs to and the assets registered under it.
In some states, workers’ compensation, disability, and unemployment insurance are calculated based on a certain percentage of the employees’ annual pay. For instance in workers’ compensation, percentages and computation depend on the risks that come with the job. It can be anywhere from 1.25 percent for every $100 for administrative professionals and more than 10% for jobs like roofers.
Small businesses can apply for affordable liability insurance that charges a single personal trainer, not more than $150 a year. But it’s a totally different story for high-liability industries like landscaping where numerous employees work; here, expect higher liability insurance.
Business insurance quotes also vastly differ since they include varying levels of benefits. Don’t forget the deductibles agreed upon and policy limits because these two also affect the total cost of the small business insurance.
Can You Rely on the Small Business Insurance Provider?
Let’s say that you have a potential small business insurance provider in mind, before going through all the kinds of insurances they offer, evaluate the company itself and the same goes for others on your shortlist. Of course, the cost of insurance is a significant factor but there are other factors to consider besides it.
Lean towards companies with great reputations, considerable assets to back up the insurance policies, and generally positive reviews from the clients. For example, the potential insurance provider you’re looking into explicitly showcases their partnership with key players boasting billions in assets in order to ensure that they can cover all their customers. Small business insurance providers, or any insurance provider for the matter, should be licensed by the state they belong to. In case they operate in multiple states, they should be capable of providing their license number for every state they operate under.
What Kind of Policies do They Offer?
Small business owners have a wide array of insurance policies to choose from and the average premiums and coverage will vary depending on the need. It’s important to consider the average costs of basic insurances for small businesses. The same goes for unemployment, general liability, disability, and workers’ compensation insurance.