How Much Is Business Insurance For An LLC?

Are you wondering how much business insurance costs? According to Fit Small Business, annual insurance costs can range from $350 to $900. Of course, this is only an estimate, and the true cost for your business could be anywhere from a few hundred dollars to a few thousand, depending on the policies you need. Let’s take a look at the types of business insurance your LLC may need and their average costs.

Types of Insurance an LLC May Need in Florida

There are different types of insurance policies an LLC can purchase to protect their business. The first type of policy is a business owners package policy. This policy can include the general liability, building coverage, business personal property or contents coverage and sometimes can be endorsed to include miscellaneous coverages. You can also purchase a general liability policy if you are not looking to cover your commercial property. You may also want to consider purchasing a professional liability policy depending on your type of business. Depending on your business’s operations and if you have employees, you may need additional miscellaneous coverages, including but not limited to: employment practices liability, commercial auto and workers’ compensation.

Commercial Liability Insurance

Commercial liability insurance, which is sometimes referred to as business liability insurance or general liability, covers bodility or property damage arising out of your operations. It can also pay for medical expenses if a customer is hurt by one of your products or on your property. It pays for damage to a customer’s property, reputation harm, and advertising injuries if you are accused of copyright infringement. Commercial liability insurance typically costs under $100 a month.

Commercial Car Insurance

Commercial car insurance helps pay for the repair or replacement of your commercial vehicles if they are in an accident. It also helps pay for the medical expenses of anyone who is injured in the accident and/or the funeral costs if someone loses their life in the accident. Commercial auto insurance policies typically include liability, personal injury, collision, comprehensive coverage and uninsured and underinsured motorists coverage. Commercial auto insurance typically costs between $2000 and $6200 per year per vehicle.

Professional Liability Insurance

Professional liability insurance is designed to help pay for any lawsuits that arise if you make a mistake that costs a customer or client money. It is sometimes referred to as errors and omissions insurance. It typically costs under $100 a month. This insurance policy is typically recommended for small business owners and individuals who are lawyers, accountants, and financial advisers, as well as other professionals.

Workers Compensation Insurance

Workers’ compensation insurance pays for medical care that is needed for employees who experience an on-the-job accident, injury, or illness. For example, if an employee hurts their back lifting a heavy object, this insurance coverage would pay for their medical expenses and a portion of their wages while recovering. Workers’ compensation insurance typically costs a percentage of your average payroll. All Florida workers’ compensation policies are rated strictly on your annual payroll and are state regulated on the rates. 

Business Owners Policy (BOP)

A business owner’s policy includes commercial property insurance, business interruption insurance, and liability protection. It’s important to note that if you get a BOP policy, you may still need commercial car insurance, workers’ compensation, and key person insurance. In general, a BOP policy costs under $100 a month.

Factors that Affect the Cost of Your Business Insurance

Certain factors will increase or decrease the cost of your business insurance policies.

  • Your Deductibles – The higher your deductible, the lower your insurance premiums. However, it’s important to choose a deductible that your business can always afford.
  • Your Industry – Some industries are determined to be at a higher risk for making claims than other industries, which can make the insurance more expensive.
  • How Many Employees You Have – The more employees you have, the higher your insurance rates will be. This is because more employees could get hurt.
  • Your Claims History – If you’ve filed numerous claims in the past, your insurance premiums will likely be higher.
  • The Physical Location of Your Business – If your physical location is known for lots of weather damage, theft, and vandalism, it can increase the cost of your insurance policies.
  • The Amount of Coverage You Need – It’s always best to get your business insurance in the amounts that you need. Lowering the limits to save money on your insurance policies could cost you more if you were to incur a high-cost claim.
  • Discounts – You may be eligible for discounts on your business insurance policies. Therefore, it’s always best to ask your Florida insurance agent about any discounts that may be available.

Business Insurance with Fearnow Serving Florida

If you need affordable business insurance in Florida, let our agents help. On average, we save our clients up to 37 percent on their business insurance premiums. We have this ability because we can look at several different policies from multiple insurance carriers to find you the exact policy you need at a price you can afford.

To learn more about LLC business insurance and to request a quote, call us at 813-689-8878.