Business Insurance | Small Business Insurance Quotes (2024)

FAQs

What is the best type of insurance for a small business? ›

With the help of a business liability insurance policy, your small business will be able to maintain financial stability if you should get sued by a customer or other business. A general liability policy also pays for your legal costs, along with settlements and judgments.

On average, an insurance policy that offers coverage for up to $2 million can cost about $30 a month in premiums.

Typically, small business owners pay a few hundred to a thousand dollars annually for $1 million of general liability coverage. However, this cost varies across businesses based on a number of factors.

The survey found that 96% of owners didn't achieve a passing grade when quizzed about basic insurance knowledge. Nearly 30% don't carry any small business insurance at all. That should give all entrepreneurs some pause.

The IRS generally considers business insurance a cost of doing business, so your policy premiums may be deductible from your taxable income. A tax professional can ensure you fill out the proper paperwork to ensure you are taking advantage of all deductions available to you.

Car insurance premiums are calculated using a complex set of rating factors that can include your age, location, driving record, and coverage selections, plus your vehicle's usage and more. Car make and model can also be a rating factor for physical damage coverages.

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 to understand an insurance quote? ›

But there's a lot more to an insurance quote than just how much you'll pay. Insurance quotes include valuable information about what the policy will and won't cover, how much the company will pay for a covered incident (your coverage limit), and what your out-of-pocket cost will be if you need to file a claim.

For example, a 30-year-old shopping for $500,000 of coverage and a 10-year term will pay $18.44 a month on average, whereas a 40-year-old would pay $24.80. These premiums increase significantly the older you are, with a 70-year-old paying $397.84 for the same coverage.

A $5 million umbrella policy costs around $375 to $525 per year, on average. Every policyholder's umbrella insurance premium will vary based on their personal risk factors, so individuals who own more cars or properties will be more expensive to insure, as will people who are particularly likely to be sued.

How much is a $5 million life insurance policy? A healthy 40-year-old woman could pay $251 per month for a $5 million, 20-year term life insurance policy. A 40-year-old man with a similar profile could pay $316 per month for the same coverage. Your age, gender, health, and lifestyle will influence your rates.

Business property insurance covers your buildings, the contents within those buildings, and loss of income if you're out of business due to a claim. It can help protect your business in case of unexpected accidents or tragedies like fire, theft, wind damage, or even a building's collapse under the weight of snow.

Is Simply Business legit? Simply Business is a good solution for business owners who want to compare a wide variety of insurance options at once. It has no local agents, so it's not a full-service solution — but it does provide an easy way to find affordable coverage online.

Thimble is the top company for general liability insurance in California, with a MoneyGeek score of 94 out of 100. It can protect your business from property damage and bodily injury claims.