As a business owner, protecting your assets and investments is crucial to the long-term success of your company. One way to do this is by purchasing business insurance. However, before you can make an informed decision about which type of insurance to buy, it’s important to understand the cost.

The cost of business insurance varies depending on several factors, including the size of your business, the type of business you operate, the location of your business, and the level of coverage you need. Here’s a breakdown of what you can expect to pay for different types of business insurance.

General Liability Insurance
General liability insurance protects your business from lawsuits that may arise from injuries or property damage caused by your products, services, or employees. The cost of general liability insurance varies widely, but on average, small businesses can expect to pay anywhere from $400 to $1,500 per year.

Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects your business from lawsuits that may arise from mistakes or negligence in your professional services. The cost of professional liability insurance depends on your industry and the level of risk involved. On average, small businesses can expect to pay anywhere from $500 to $3,000 per year.

Workers’ Compensation Insurance
Workers’ compensation insurance is required by law in most states and covers medical expenses and lost wages for employees who are injured or become ill on the job. The cost of workers’ compensation insurance varies based on the type of work your employees do, the number of employees you have, and your claims history. On average, small businesses can expect to pay anywhere from $0.75 to $2 per $100 in payroll.

Property Insurance
Property insurance covers damage to your business property, such as your building, equipment, and inventory. The cost of property insurance depends on the value of your assets and the level of coverage you need. On average, small businesses can expect to pay anywhere from $500 to $1,000 per year.

Business Interruption Insurance
Business interruption insurance covers lost income and expenses if your business is forced to close due to a covered event, such as a natural disaster. The cost of business interruption insurance varies based on the size of your business, the industry you operate in, and the level of coverage you need. On average, small businesses can expect to pay anywhere from $750 to $10,000 per year.

Cyber Liability Insurance
Cyber liability insurance protects your business from the financial losses associated with cyberattacks, such as data breaches and cyber extortion. The cost of cyber liability insurance depends on the size of your business, the industry you operate in, and the level of coverage you need. On average, small businesses can expect to pay anywhere from $1,000 to $7,500 per year.

In conclusion, the cost of business insurance depends on several factors, including the type of coverage you need, the size of your business, and the industry you operate in. While it may seem expensive, the cost of insurance is a small price to pay for the peace of mind that comes with knowing your business is protected. When considering business insurance, it’s important to shop around, compare quotes from multiple providers, and work with an experienced insurance agent who can help you find the right coverage at the right price.