Get business insurance (2024)

FAQs

What is the best type of insurance for a small business? ›

The most common are general liability and professional liability. Getting the right business insurance coverage isn't any different than protecting your home with homeowners insurance – they're both some of the most important investments you'll ever make.

Unfortunately, the LLC business structure typically only protects personal property from lawsuits, and even that protection is limited. While an LLC will protect your personal assets and ensure that they are treated separately from your business, your business may still need its own insurance policy.

At minimum, you should start with these types of small business insurance: General liability coverage. Workers' compensation coverage. Commercial auto coverage.

On average, an insurance policy that offers coverage for up to $2 million can cost about $30 a month in premiums.

Nationwide is the No. 1 small business insurance company in our rating, offering a range of coverage options, including a business owners policy (BOP) that bundles general liability, commercial property, and equipment breakdown.

Cost. As a general rule of thumb, figure that each million dollars of insurance cost $1,000.

A $5 million umbrella policy costs around $375 to $525 per year, on average.

As a general rule, you'll want to get business insurance quotes from at least three different companies.

An LLC has distinct advantages in the areas of legal protection and liability. While there are filing fees for setting up an LLC, that cost can be well worth it when compared to the thousands of dollars you could be liable for as a sole proprietor. On the other hand, it costs no money to start a sole proprietorship.

While both DBAs and LLCs are registered with the state and allow you to conduct business using a new name, only the LLC allows you to protect your assets from business creditors. The decision can influence liability protection, tax flexibility, and more.

How much does it cost to file an LLC in NY? ›

The fee for filing the Articles of Organization is $200. The fee may be paid by cash, check, money order, MasterCard, Visa or American Express. Checks and money orders should be made payable to the “Department of State.” Do not send cash through the mail.

If you've asked yourself, “Do I need insurance for my small business?” The answer is yes. A small business insurance policy can help with protecting your assets and company. Without this coverage, small businesses may have to pay to repair or replace damaged or destroyed property on their own.

So, it's no surprise that many entrepreneurs find themselves wondering if their business insurance tax deductible. The answer is generally yes. The Internal Revenue Service views some insurance premiums as a cost of doing business and may accept them as tax deductions.

Life insurance is the most profitable—and the hardest—type of insurance to sell. With the highest premiums and the longest-running contract, it brings in cash over a long period of time. In the first year, agents make the largest annual sum on a policy, bringing in anywhere from 40–120% of the policy premium.

Business overhead expense insurance, or BOE insurance, is a type of disability insurance policy designed for small business owners. If the business owner experiences a covered a covered disability, the benefits can pay for overhead expenses up to the maximum monthly benefit.

Business property insurance covers your buildings, the contents within those buildings, and loss of income if you're out of business due to a claim. It can help protect your business in case of unexpected accidents or tragedies like fire, theft, wind damage, or even a building's collapse under the weight of snow.