Do you need business insurance in Washington State? Business insurance helps protect your financial interests in the event that your physical property is damaged, someone experiences an accident on the property, someone is harmed by your product or service or you lose a key person. There are even business insurance policies that can help you pay for certain costs if your business is robbed or you experience a data breach. Let’s take a look at the most common types of insurance a business needs and how much those policies cost on average.
Types of Insurance Most Businesses Need
Most businesses need a minimum amount of insurance, including general liability, commercial building and key person. Insurance companies have recognized this and offer Business Owner Policies that include these two types of insurance coverages. Some insurance companies also offer key person insurance as part of the BOP policy.
General Liability Insurance
General liability insurance helps protect your business against financial losses if a person is injured at your business or by one of your products. It also helps pay for damages to your customer’s property.
Commercial Building Insurance
Commercial building insurance helps pay for damages to your building and the contents inside if they were to become damaged or destroyed due to a covered event.
Commercial Car Insurance
Commercial car insurance helps protect your fleet of vehicles if they were to become damaged or total in a car accident. These policies typically include comprehensive, collision, liability and under and uninsured motorists coverage.
Cyber Crime Insurance
With so attacks on business servers worldwide each year, it’s important to have your business financially protected in case of a data breach. Cyber crime insurance helps mitigates the costs of data breaches, hacking, malware and viruses.
Equipment Breakdown Insurance
Some companies operate a lot of machinery or have a lot of computers, servers and electronic equipment. Equipment breakdown insurance can help you pay for repairs to that equipment or for replacements if the machinery cannot be repaired.
Workers Compensation Insurance
Most businesses that have employees on the payroll are required to have a workers compensation policy. These policies help pay the medical expenses of your employees and part of their salary if they were to become injured on the job or as a result of the job.
Key Person Insurance
Key person insurance is a type of life insurance policy that you take out on the key people in your business. If you’re wondering who the key people are in your business, it’s the people who help you run your company and whose loss would significantly impact your operations. If your key person were to die, this policy pays out a lump sum. The money can be used to hire a replacement and maintain operations or to dissolve the business, if it is no longer viable.
Average Cost of Business Insurance Policies
The cost of your business insurance policies will depend on several factors, including the size of your business, how many employees you have and the types of insurance that you need. The general rule of thumb is that for every million dollars of coverage, the policy will cost $1,000 per year or $83 per month.
- Business Owners Policy – Business owners policies can cost anywhere from $50 to $90 a month. It’s important to note that this policy is typically a little cheaper than purchasing individual policies because several different types of insurance are bundled.
- Business Interruption Insurance – This policy average about $40 a month.
- General Liability – For most small businesses, general liability insurance runs about $30 a month.
- Commercial Property/Building Insurance – Commercial property insurance averages about $63 a month for most small businesses.
- Commercial Car Insurance – Commercial car insurance is dependent on the vehicle type and the number of vehicles that need to be insured. This insurance can cost anywhere from $600 to $12,500 per year or $50 to more than $1,000 per month.
- Cyber Crime – On average, businesses pay $145 a month for cybercrime insurance.
- Equipment Breakdown Insurance – Companies can expect to pay between $25 and $50 more per year to add equipment breakdown insurance to their existing business insurance policies. It’s important to note that this insurance has a deductible.
- Key Person – Businesses can expect to pay between $30 and $400 for a key person policy of $500,000.
- Workers Compensation – Workers compensation insurance costs, on average, $70 a month.
Getting Business Insurance with Boyd Insurance Brokerage Inc. in Spokane, Washington
Our agents at Boyd Insurance Brokerage Inc. can help you find the right types of insurance policies for your business. We offer business owners policies, liability, property, business interruption insurance, equipment breakdown, commercial car insurance, crime and cyber insurance and key person insurance. We even have insurance policies geared for certain types of businesses, like farms and restaurants.
If you need a business insurance policy, give us a call at 509-340-2693.