Starting a business comes with risks, and part of setting yourself up for success is finding ways to minimize them. That’s where business insurance comes in.
But beyond being a crucial step in protecting your business, insurance is also something you need to budget for. And here’s the thing: business insurance costs can vary widely. Some businesses pay just a few hundred dollars a year, while others pay thousands.
So what you really want to know is: How much is MY business insurance going to cost? The answer depends on several factors, including your industry, coverage needs, and risk level. Let’s break it down so you can get a better idea of what to expect.
How Much Is Business Insurance?
It sounds like a simple question, it’s like asking, “How much does a house cost?” The answer depends on location, size, features, and more.
Business insurance works the same way—your costs are determined by what kind of coverage you need and the risks associated with your industry.
Some of the biggest factors that influence small business insurance costs include:
- Industry – Higher-risk industries (like construction or food service) typically pay more than lower-risk businesses (like consulting or graphic design).
- Background – Your experience, certifications, and business history can impact insurance costs.
- Business Income – The more revenue you generate, the higher your potential liability exposure.
- Location – State laws, local risks, and population density will differ depending on where the business is located (thus, so do insurance premiums).
- Number of Employees – More employees can mean higher premiums, especially for workers’ compensation insurance.
- Claims History – If you’ve had previous liability claims, you may pay more for coverage.
- Coverage – The types and limits of business insurance policies you choose directly affect your premium.
Of all these factors, your coverage choices are the most in your control—and that’s where we can help!
How To Save Money On Business Insurance
Business insurance isn’t priced like other goods and services, and while that might seem confusing at first, it actually works in your favor.
Unlike flat-rate pricing, your insurance rates are unique to you, which means that the choices you make about your coverage can have a direct impact on what you pay.
Policies
It might seem logical to cut back on coverage to save money, but skimping on business insurance can actually cost you more in the long run.
Buying only the bare minimum can actually make insurers see you as a higher risk, leading to higher premiums over time. Instead, focus on getting the right coverage for your specific risk exposure.
One way to reduce costs (without compromising protection) is to bundle policies when available.
Coverage Limits
In some cases, your business insurance coverage limits are set by law (such as commercial auto insurance requirements), but others allow flexibility in how much protection you choose.
In general, higher coverage limits mean higher premiums, since the insurance company is taking on more risk.
Deductibles
Your deductible is what you pay out-of-pocket before your insurance kicks in. Adjusting it is one of the easiest ways to control your premium:
Higher deductibles typically lead to lower monthly rates but more upfront costs if you file a claim. Lower deductibles generally come with higher monthly rates but less to pay out-of-pocket when something happens.
Great Coverage > Low Premiums
While saving money on business insurance is important, it shouldn’t be your top priority. In most cases, cheap insurance doesn’t just mean a lower premium, it means putting your entire livelihood at risk.
Accidents, property damage, and lawsuits can happen at any time, and they’re often far more expensive than business owners expect. If you cut corners with a bare-minimum policy, you could be left paying for everything yourself—from legal fees to medical expenses to property repairs.
In the worst-case scenario, it could mean losing your business entirely.
That’s why the best approach isn’t just finding the cheapest policy—it’s finding the right protection at the best possible price.
Great Coverage, Great Price
Another great way to lower premiums without sacrificing coverage? Working with an independent insurance agent like Harry Levine Insurance!
Unlike agents who are tied to a single insurance company, we have access to a wide range of trusted providers, allowing us to compare policies and find the best coverage at the most competitive price. With more than 40 years of experience in the Orlando area, we have the expertise to help businesses of all sizes and industries get the right protection while keeping costs manageable.
If you need help insuring your business, we’d love to help! Call today or visit our website for a free quote and let us find the perfect policy for you.
