How Much Is Insurance for a Startup Business?
Startup small business insurance costs
can vary. On average, small businesses pay $1,057 annually for general liability coverage.1
Many small business owners get a Business Owner’s Policy (BOP)
. This combines business property and liability insurance into one convenient policy. The average cost of this coverage is around $3,135 annually.2
Average Business Insurance Costs for a Startup
Getting the right type of insurance for startups
is essential. Without it, you’ll have to pay for claims and legal fees out of pocket. Some common coverages that startups benefit from include:
The average cost of these policies can vary depending on how much coverage you get. One way that small business owners can save money is by bundling coverages into a Business Owner's Policy (BOP)
. This policy allows you to bundle business liability and property damage coverage into one convenient policy.
Factors Impacting the Business Insurance Cost for a Startup
Some factors that can impact the cost of business insurance for your startup include your:
- Number of employees
It’s also important to remember that business insurance is required by law in some states and that startups with higher small business risks
may also have more costly insurance rates. For instance, construction companies face more risks than accounting firms, so they might pay more for insurance.
You’ll also want to understand your other business startup costs
in addition to your insurance price. This can include the expenses of:
- Buying new equipment
- Getting inventory
- Renting or buying a building for your company
- Creating a website
- Getting furniture for your business
- Hiring employees
Common Questions About Startup Business Insurance Costs
Is Business Insurance a Startup Cost?
For most businesses, insurance is considered a startup cost. However, the amount you pay will vary depending on your industry, number of employees and the risks faced on the job.
How Much Should I Budget for Business Insurance?
Setting a budget for your small business or startup is important because it helps monitor your spending. So, how much should you budget for business insurance? While the cost of insurance varies, you’ll want to budget around $1,000 to $3,000 annually for insurance coverage.
Get a Quote for Small Business Insurance Costs for a Startup Today
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risks and get the insurance coverage you need. To get started, obtener una cotización
Última actualización: 10 de junio de 2022