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Comparing the Costs of Different Business Insurances and What They Cover

A risk is an inherent factor that affects every business, hence the need to mitigate these risks by having adequate insurance protection. There are several kinds of insurance policies every company or entrepreneur should not go without. Depending on the nature of the work or service being provided, you may need some or most of these essential business insurances. Here is a comparison of the most common types of business insurance, their cost and coverage.

Professional liability insurance

Professional liability insurance covers a business against claims or complaints filed by customers such as those related to negligence, mistakes, or failure to fulfil the required obligation. It is essential to understand that professional liability insurance needs to be tailored according to the nature of the business. It is possible to get cheap professional liability insurance by buying a packaged policy, together with general liability from Next Insurance. The average annual cost of professional liability insurance for small businesses is $1,700. Again, the price will vary greatly depending on the inclusions and limitations of the policy.

General liability insurance

General liability insurance is commonly associated with claims related to accidents and bodily injuries sustained while a client is within the business premises. It also covers property damage incurred that are directly related to the company’s products, services, or day-to-day operations. In some instances, tenants get general liability insurance to provide coverage if the landlord files a claim for damaged property. The annual average cost of general liability insurance, without respect to the limits of the policy, is about $741.

Property insurance

The primary goal of getting property insurance is to protect your business premises and all the contents within for any damage resulting from a covered event. Some business property insurance may provide extended coverage for expenses incurred after a disastrous event such as a fire. The money paid out by the policy may insulate the business and continue operation until the business recovers from the loss. On average, a company pays around $500 to $1,000 every year for commercial property insurance.

Employee compensation insurance

Every company that hires employees needs a worker’s compensation insurance. What this policy covers are medical, disability, and death benefits in case an employee sustains an ailment, injuries, or dies as a direct result of doing his job. Even if you feel that your company does not engage in high-risk work, minor accidents such as falls, and slips could lead to costly claims if your business does not have insurance. The cost of worker’s compensation insurance varies by state, and if the basis is per $100 of employee wages, the average range is $.75 to $2.74.

These are only four of the primary business insurance coverage every company should have. Nonetheless, there are other types of business insurance which you can get depending on your needs. These include vehicle insurance, product liability insurance, and insurance for home-based businesses.

If you are looking for the most comprehensive professional liability and general liability insurance at reasonable rates, contact Next Insurance today and get a custom quote for your business.

About the author


Bernadine Racoma

Bernadine Racoma is the Content Manager of Her long experience in an international development institution and extensive travels have provided her a wealth of knowledge and insights into cultural diversity. She writes to inform, engage, and share the idea of the Internet being a useful platform for communicating, knowledge sharing, educating, and entertaining. You can find Bernadine Racoma at Twitter.