Commercial Business Insurance: A Deep Dive Into Average Policy Costs In 2023
The last few years have shown us all that you’re never going to be able to predict what’s coming. Every business has been put through the wringer, and it’s made everyone a lot more cautious. Optimism among small business owners is below the 49-year average. Commercial business insurance is one of the best ways to make sure that you’re protected against whatever the next few months and years are going to bring.
However, you’re going to want to make sure that you’re not paying more than you need to. A survey into the costs of eight industries and commercial insurance policies from The Hartford found the median cost was $662 annually, or $55 a month. But let’s dig a little deeper to help you understand how those costs are reached.
Understanding Commercial Business Insurance
Commercial business insurance is a term that covers a lot of ground. Different companies have different needs, after all. For example, you’re not going to see the owner of a craft and fabrics store paying the same as someone who runs a large delivery company. Insurance providers will take a lot of different factors into account when putting their policy costs together.
What Affects The Cost Of Commercial Business Insurance Policies?
There are a lot of different factors that can impact the cost of your policy, and most of them probably won’t come as too much of a surprise. For example, a big business with a lot of employees is going to end up paying higher premiums than a company that’s operated from a rented office with three people involved. Your claims history can have an impact, as can the location of your business, and that the coverage type and limits will have their part to play.
What Are The Different Types Of Coverage?
Worker’s compensation insurance is essential if you’ve got a team, and you will almost certainly need commercial auto insurance if anyone is using a company car or truck.
Commercial property insurance is key, not just for your workspace but for any tools that you’re using. And there’s general liability insurance, which covers property damage and personal injury.
What Is The Average Cost Of Commercial Business Insurance?
The costs for each of these policies will go up depending on your specific business and circumstances. That’s why The Hartford points out that the average cost for commercial insurance was roughly $1,500, a higher number than the median. You’re going to be paying more for more coverage.
How Do I Choose The Right Coverage?
The important thing to remember is that there is only so much information about the best policy for you based on averages. Inflation may have slowed to 4.9% but that peace of mind is crucial. You need to find a commercial business insurance provider that will work with you to find a policy that fits your exact needs. This is the best way to avoid paying more than you need to while making sure that you are covered for the kind of risks that you’ll be facing.
