Cheap Insurance Companies: Not the Only Way to Keep Business Insurance Costs Low

Small Business

Cheap Insurance Companies: Not the Only Way to Keep Business Insurance Costs Low

Published on January 05, 2018


Finding cheap insurance companies can help keep your business insurance costs low. But there are more ways to get the business insurance you need without breaking the bank.

Business insurance: why not just skip it?

Before you look into cheap insurance companies to cover your small business, let’s talk about why the costs of business insurance would be worth paying for.
According to the Institute for Legal Reform, 34 percent of small businesses have faced lawsuits and 64 percent of those sued claimed that it significantly affected their business.
Although you never plan for disaster to strike, these statistics show that it’s not that rare. Whether you’re exploring cheap insurance companies or more comprehensive coverage, you’ll want to understand the coverage before you buy.

Cheap insurance companies

While buying from the cheap insurance companies can help keep costs low, there are also ways to save besides choosing the cheapest insurance companies you can find. You might lower your business insurance cost by doing your research and understanding prices and coverage, just as you would with health insurance at Insureon suggests doing three things while shopping for cheap insurance companies:

  • Compare quotes—use a website that allows you to look at prices for several companies all at once (like eHealth lets you do for health insurance), or spend time researching on different insurance company websites yourself.
  • Bundle policies—in some cases, business insurance companies will discount your total price if you buy several policies from them at once.
  • Manage your risks—this includes identifying, assessing, treating, and monitoring risks as to prevent suits. Risks could be anything from slippery floors to untrained employees.

Searching for the cheapest insurance companies and finding the least expensive policies can save costs in the short run. Looking into coverage, deductibles, and other details though can help you decide what business insurance works best for you. In some cases, the cheapest business insurance could be enough for what your business is looking for, but you might find that you benefit from looking into what all the policies offer before making a decision

Business insurance costs

Insureon reports that (regardless of policy type):

  • The average business insurance cost was $1,281/year in 2017
  • The median business insurance cost was $584/year in 2017
  Average Cost Median cost
Errors and Omissions $1735.59/yr $920.00/yr
General Liability $741.30/yr 428.00/yr
Umbrella $1,533.18/yr $960.00/yr
Workers comp $862.00/yr $862.00/yr
These prices are going to be dependent on many factors, such as your location, size, industry, revenue, and number of employees. Bundling the types of business insurance you need could help save costs.  You can also compare prices just as you would with health insurance on eHealth.
In the table above, general liability insurance has the lowest business insurance cost. This is an incredibly common type of insurance, with Forbes even ranking it at number one among the types of insurance a small business owner should have. You can talk to a business insurance agent in order to decide what other policies might be good to be covered with. The policies chosen will vary from business to business.
As stated before, you could also lower your costs by comparing quotes. You may find some cheap insurance companies work well for you, or you might find that having quality, extensive coverage in certain areas of your business is worth the price.
As for managing risks, this could mean a lot of different things, depending on the company. For a grocery store, it might mean making sure any wet floors have a sign that warns about slipping. Use whatever precautions you can to reduce risks, and this can result in lower rates being offered to you by business insurance carriers, since you are less of a risk to them.
eHealth aims to help small business owners and provide them with information that might be useful in finding coverage beyond just health insurance. This article is not meant as professional advice, and you should consult a business insurance specialist in order to make a decision on how to weigh business insurance costs.

Choosing a licensed insurance broker

As a small business owner, there are many different types of insurance you can purchase to cover your assets and employees. If you are also looking for health, dental, or vision plans you can find great prices and quality coverage with the help of a licensed insurance broker from eHealth. With eHealth, you have an informative, easy-to-navigate website as a resource to show a variety of premiums and plans for health insurance needs. Contact eHealth for more information regarding your small business insurance needs.

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