How Much Will The Insurance Cost?

I get that question all the time from clients and non-clients.

“I’m starting a business and we’ll be doing XYZ.  What insurance will I need and how much will it cost?”

Or, “we just landed a really big contract but they’re requiring we increase our liability limits.  How much will that cost?” (see my previous post, “Negotiating a contract.”)

I always try to answer the question with my best guess, but at the end of the day, the real answer is this:

It depends.

No one likes that answer, but remember:  Every business insurance premium is customized for that particular business.  Gross sales, payroll, location, credit history, driving history, claims history, even the type of building you’re in all play a factor in how much premium you pay.

So if you need a rough figure for budgeting purposes, my guess will probably be good enough.

But if you need a hard number, the only real way to find out how much your insurance will cost is to apply for it and get a real quote from an insurance company.