Business Insurance Calculator: Estimate Your Costs

Owning a business comes with many expenses, both obvious and hidden. One obvious expense should be business insurance. A good business insurance policy comes with many types of coverage, including commercial property insurance, workers' comp, commercial liability insurance, and more to help protect your business against everyday threats. But your business's policy may vary based on its unique exposures and operations. 

The types of coverage you select, along with several other factors, influence your business insurance estimate. The average annual cost of business insurance for a liability-only policy is $500, while a business owners policy costs about $636. An independent insurance agent can help you find the right type of business insurance for you. But you can get a quote for your business today by using our small business calculator.

Business Insurance Cost Calculator

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How will this quote help me?

Your quote is based on several common factors to give you a clear picture of the cost you can expect, though an independent agent can shop around and maybe even improve your rate!

NOTE: This business insurance cost estimator quote is not final, though we did work with professional actuaries to help get you a ballpark figure to get started.

Types of Business Insurance and Average Cost

Business insurance provides important protection, not just for the business's owner, but also for its property, workers, equipment, customers, guests, products, and more. So how much is business insurance? To calculate how much business insurance you need and thus the premium rate you'll pay, you'll have to consider your company's risk areas and if certain coverages are necessary for you. 

What are the four types of business insurance? Find out below:

• Commercial general liability insurance: Protects your business against the costs of lawsuits filed by third parties for claims of bodily injury or personal property damage caused at or by your company. This coverage is ideal for any kind of business, from large corporations to small single-location stores, because you can get sued by a third party whatever your operations are.
• Workers' comp: Protects your business's workers from injury, illness, or death on the job or as a result of your business's activities. This insurance is mandatory for most businesses with one or more employees, regardless of the type of operations you perform, though coverage laws vary by state.
• Commercial auto insurance: Protects company vehicles from many types of disasters, including collisions, lawsuits, and more. This coverage is ideal for businesses that make deliveries or have mobile services, such as restaurants or mobile pet grooming businesses. 
• Business owners policy: These business insurance packages are created for small businesses and combine several key coverages like commercial general liability, commercial property, and business income together. This coverage is ideal for smaller or "lower-risk" businesses, including small restaurants, retail outlets, salons, etc.

How much is insurance for business?

Your business may also need or choose:

• Professional liability insurance: Protects the public from poor advice, wrongful acts, or other incorrect activities performed by your business that end up causing some type of harm. This coverage is needed by professionals who offer advice or counseling as part of their services, including lawyers, therapists, etc.
• Commercial property insurance: Protects your business's structure and often the inventory inside from disasters like fire, lightning, vandalism, etc. Businesses of all kinds, ranging from construction companies to food trucks, need this coverage to protect their business property from many threats.
• Business equipment protection: Protects your business's necessary equipment like gear, tools, etc., from theft and other disasters, including fire. This coverage is necessary for many types of businesses that rely on equipment to operate, including construction workers, photographers, etc.
• Cyber liability insurance: Protects a business from cyber threats like data breaches. This coverage is necessary for any type of business that stores sensitive information electronically or otherwise relies on computers and the internet, including retail chains, hotels, etc.
• Product liability insurance: Protects a business against lawsuits stemming from faulty products that cause harm to the public. This coverage is necessary for businesses that sell products to the public, such as hair salons, retail stores, etc.
• Employment practices liability insurance: Protects a business from employee claims of wrongful termination, sexual harassment, failure to promote, etc. This coverage is ideal for any type of business with employees, including gyms, spas, retail chains, etc.

An independent insurance agent can help your business get set up with all the protection it needs together in one tidy business insurance policy. Our small business insurance cost calculator can also help you get a better idea of how much you can expect to pay for this coverage. 

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Factors that May Affect Your Business Insurance Estimate

So how much does business insurance cost, exactly? When calculating your business insurance estimate, several factors are considered. These often include:

Your profession

The type of work your business performs impacts the coverages it needs, and therefore the cost of its business insurance. While construction workers carry some of the highest risk and greatest coverage needs, a hair salon carries a much lower risk, and requires less expensive coverage as a result.

Your business's size and number of employees

Your business's number of employees impacts the cost of your insurance, since you'll have to pay more for workers' comp to properly cover your entire team. Your business's size also influences how much coverage you need, since larger businesses carry more risk inherently with their larger customer base and additional exposures.

Your business's coverage needs and deductible amount

The types of coverage your business needs, as well as how much coverage in each category, will impact how much you pay for your policy. Also, the higher the deductible amounts your business carries, the lower your premium costs are likely to be. 

Your industry

Your business's industry can impact your insurance rates by its risk level and operations. Certain industries, like construction and the medical field, carry much more risk than retail clothing outlets.

Your location

Your business's location can impact your insurance rates, depending on your area's natural disaster risk, crime rate, etc. If your business is located in an area of Tornado Alley or somewhere with a high crime rate, you're likely to have to pay more for your coverage.

Your business's payroll and sales

You'll need more business insurance coverage to be able to replace potential lost income or employee payroll if an unexpected closure occurs. The higher your business's payroll and sales, the more expensive your coverage is likely to be.

Your business's prior claims

Your business's claims history impacts the cost of your insurance by increasing your premiums in accordance with how many claims you've filed over time. If your business has had no prior claims, it may even start to receive coverage discounts from the insurance company.

Our business insurance calculator on this page can help estimate the cost of coverage your exact business will need. The insurance cost for businesses will vary depending on the factors listed above as they apply to your unique company.

How to Save Money on Business Insurance

Knowing which types of coverage your business needs and avoiding what it doesn't need is a key practice for saving money on your business insurance. There are several other ways to save money on your business insurance, though. Working with an independent insurance agent, for starters, can help your business get matched to the right type of coverage at the best possible rate.

More ways to save money on business insurance:

• Adjust your deductibles: Lower deductibles typically correspond to higher premiums, so if you ask to increase your deductible amount, you could save money on your coverage. Just keep in mind that you'd have to pay more out of pocket before getting reimbursed for a claim.
• Prepay your policy's premium annually: Many insurance companies offer discounts for customers who pay their entire annual premium in full. Ask about paying one lump sum premium vs. monthly installments. 
• Bundle your coverage: You can typically save money by buying more than one type of coverage through the same carrier. Ask about bundling discounts and you could save up to 25% on your coverage.
• Provide workplace safety training: Many business insurance companies offer workplace safety training discounts. If you host safety training for your employees, you might be eligible for premium discounts.
• Ask your agent for additional discounts: Your independent insurance agent can help find any other discounts you may qualify for on business insurance that aren't on this list.

Your independent insurance agent knows which discounts to ask for, and which would benefit your business the most. They can help you save the most money possible on business insurance, so you may pay even less than what's reflected by our small business insurance calculator. 

FAQ about Calculating Business Insurance

Why Choose an Independent Insurance Agent?

It’s simple. Independent insurance agents simplify the process by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut the jargon and clarify the fine print so you know exactly what you’re getting.

Independent insurance agents also have access to multiple insurance companies, ultimately finding you the best business insurance coverage, accessibility, and competitive pricing while working for you.