How Much Is Small Business Insurance? Here's Our Breakdown

Running a small business can be a challenge — but the rewards far outweigh the risks.

You still have to be prepared.

To be a responsible and successful business owner, you need to have your bases covered — and that includes finding and obtaining the right insurance policies to protect you, your employees, and your customers.

How Much is Small Business Insurance?

So, how much is small business insurance? And which policies should you look for?

Here’s our breakdown of the types of insurance every small business needs, why you need them, and how much they’ll cost you.

General Liability Insurance

General liability insurance protects businesses from being held responsible for third-party risks and damages caused by the products they sell, including bodily injury and property damage — and it covers related lawsuits.

For small businesses, every dollar counts — and business owners should be proactive and protect themselves against potential financial losses that could greatly impact their business. If you run a liquor store, for example, consider how selling alcohol might lead to unexpected injuries (and claims). Or if you operate a hardware store, think about how the tools you sell might do the same. Protect your business by staying ahead of the game with a comprehensive policy.

Remember that many vendors require you to have general liability insurance before making deals, so obtaining a policy early on will ensure you’re staying competitive with high-quality inventory.

General liability policies vary in cost depending on your business size and industry, but most small business owners can expect to pay anywhere from $30 to $100 per month.

Commercial Property Insurance

Commercial property insurance covers damage to your business’ physical assets, including buildings, furniture, inventory, and even your point of sale (POS) system. Covered events could include everything from fire and flood to theft and vandalism.

Like general liability insurance, commercial property insurance is important for small businesses that are working with a limited cash flow. There usually isn’t much room in the budget to handle unexpected events, and these policies can partially or entirely cover repairs, replacements, and lawsuits.

When your inventory is your currency, you need to cover your bases — whether you’re selling clothing in a retail store or cigars in a smoke shop.

Commercial property insurance will generally cost you anywhere from $25 to $125 per month, which is a small price to pay for peace of mind.

Business Income Insurance

Business income insurance protects businesses in the event they lose income due to covered circumstances like natural disasters and significant financial losses.

This type of insurance can keep businesses afloat during times of crisis by helping with bills, replacing lost income, and covering expenses needed to restore the business after an event. Even if your business is damaged by a tornado or hurricane, you’ll be able to receive some income.

Business income insurance policies will run you between $25 and $125, but are usually bundled with other types of insurance, like general liability.

Workers’ Compensation Insurance 

Workers’ compensation insurance covers wages, medical care, and other benefits in the event that an employee is injured or becomes severely ill while on the job. This type of insurance protects employers and employees by covering major financial losses, and most states require that businesses obtain a policy.

Whether you have a team of two or 200, responsible business owners prioritize the wellbeing of their employees — they are the backbone of your business. And because small businesses are usually run by small teams, you have to make sure everyone is covered in order to stay successful and maintain a safe work environment.

Workers’ compensation insurance ranges depending on your industry and the size of your team, but retail businesses can expect to pay anywhere from $500 to $4,000.

Make Smart Business Moves

Starting a new business, or running an existing one, requires savvy decision-making. One of the easiest decisions to make, though, is to properly insure your business — but the options can seem endless.

Start with the basics: general liability, commercial property, business income, and workers’ compensation insurance.

Find the policies that work for your industry and your specific business, evaluate the costs of each, and determine which makes the most sense for you. You want to get the most bang for your buck.

Fully insured, and ready to amp up the rest of your business operations? Schedule a demo with one of our POS Nation specialists, and learn how the right retail point of sale solution can make a big impact on your bottom line.