Three Factors That Could Effect Your Small Business Insurance Rates

When you are running a small business you have to be sure that your staff is well-taken care of and that you have a solid wall of protection against any unforeseen disasters that might overtake your business. That is why it is so crucial to take out a small business insurance policy, even if you work out of your home. There are many factors to consider when purchasing small business insurance, not the least of which is price– which can fluctuate greatly based on where you are located. In fact, if you look up small business insurance rates by ZIP code, you will find that there is a great deal of divergence both within and across states. There are many reasons for the lack of homogeneity among small business insurance rates, most of which have to do with the type of coverage such policies give you.
Structural Coverage:

Small business insurance policies cover the structure of a business as well as all of its contents. This means that if the physical brick and mortar structure of your business were to be destroyed in a fire or as the result of a natural calamity, the insurer would have to cover your repair costs. They would also have to cover any loss to your inventory and equipment. In states where there is a higher risk for devastating natural disasters such as tornadoes and earthquakes, you might find yourself paying higher premiums as a matter of course. A quick search of small business insurance rates by ZIP code can help you determine what the average costs of coverage are in your area.

Theft and Vandalism Coverage:

When you run a business, you unfortunately become a target for thieves and vandals looing to profit from your hard work. Sometimes even the most cutting-edge alarm systems are not enough to keep your business safe from burglars and vandals. Any good, small business insurance policy will cover your business in the event of theft and vandalism, and will pay to repair or replace stolen or damaged inventory and equipment. Of course, given this factor, you can always expect to pay higher premiums for small business coverage in areas that are more prone to property crime. The deviation in crime rates across the country is certainly reflected in the immense variation in small business insurance rates by ZIP code.

Health Insurance for Employees:

Any small business owner knows that the key to keeping a business productive is to keep the staff happy. Many employees today are making do with smaller paychecks that cannot come close to covering the costs of health insurance. By offering health benefits to your employees, you boost staff morale, build employee loyalty, and can look forward to having a more productive working environment. Each state has its own regulations when it comes to minimum standards of health coverage, meaning that what you pay for employee health coverage can vary significantly by state. This variation is partly responsible for the disparity evident in small business insurance rates by ZIP code.
While there are other aspects that can affect the cost of your small business insurance, the majority of the differentiation in small business insurance rates by ZIP code is based on these aforementioned three factors. However, despite the costs, there is no denying the fact that a solid small business insurance policy is vital to the long term survival and success of any business.

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