Starting a small business is an exciting journey, but it’s not without its risks. As a small business owner, you need to protect your assets and investments by getting insurance coverage. However, buying insurance can be expensive, especially when you’re just starting out. In this article, we’ll explore some of the cheapest small business insurance options available.
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General Liability Insurance
General liability insurance is one of the most important types of insurance for small businesses. It covers the costs associated with third-party bodily injury, property damage, and advertising injuries. This type of insurance can also cover the legal fees if your business is sued. The average cost of general liability insurance is around $500 per year, making it one of the most affordable policies for small businesses.
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Business Owner’s Policy (BOP)
A Business Owner’s Policy (BOP) is a packaged insurance policy that combines multiple types of coverage, including general liability, property, and business interruption insurance. BOPs are typically designed for small businesses and offer a convenient way to get basic coverage at an affordable price. The cost of a BOP varies depending on the size and type of business, but the average cost is around $1,200 per year.
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Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects you from lawsuits related to professional mistakes or negligence. This type of insurance is crucial for businesses that provide services or advice, such as consultants, accountants, and lawyers. The cost of professional liability insurance depends on the type of business and the level of risk involved, but it can range from $500 to $5,000 per year.
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Workers’ Compensation Insurance
Workers’ compensation insurance is required in most states for businesses with employees. It covers medical expenses and lost wages for employees who are injured or become ill due to their work. The cost of workers’ compensation insurance varies depending on the state and the type of business, but it typically ranges from $0.75 to $2 per $100 of payroll.
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Commercial Auto Insurance
If your business owns or uses vehicles for work purposes, you need commercial auto insurance. This type of insurance covers bodily injury and property damage caused by your vehicles, as well as theft and damage to your vehicles. The cost of commercial auto insurance varies depending on the number of vehicles and the driving records of the drivers, but it typically ranges from $1,000 to $3,000 per year.
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Cyber Liability Insurance
In today’s digital age, cyber liability insurance is becoming increasingly important for small businesses. This type of insurance protects your business from losses related to cyber attacks, data breaches, and other digital threats. The cost of cyber liability insurance depends on the size and type of business, as well as the level of coverage needed, but it can range from $500 to $5,000 per year.
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Business Interruption Insurance
Business interruption insurance covers the loss of income that a business suffers after a disaster, such as a fire or natural disaster. This type of insurance can help cover rent, employee salaries, and other expenses while your business is closed. The cost of business interruption insurance depends on the size and type of business, as well as the level of coverage needed, but it typically ranges from $750 to $10,000 per year.
In conclusion, there are many affordable options for small business insurance, and it’s essential to find the right coverage for your business. By understanding the different types of insurance available and their costs, you can make an informed decision about which policies to purchase. Don’t wait until it’s too late – protect your business today with the right insurance coverage.
