How much does business insurance cost? – Dailytidbits

On a day-to-day basis, all  companies have to deal with risks of various types . Given this reality,  one of the main instruments  that organizations have to try to control and reduce the impact that a theft, a fire, an accident or any other type of unexpected event or incident can cause,  is to have business insurance.

Therefore, the next question many business leaders and business owners ask is:  how much does business insurance cost?  Although the answer is multiple and complex,  we are going to try to give some keys or guidelines to solve it .

The price of business insurance depends on many factors.

The first thing we have to consider when calculating the annual budget that we must reserve to insure a company is that, almost certainly,  we will have to take out more than one insurance , since there are various types on the market, some of them They are mandatory for many activities.

Liability insurance

In addition, depending on their activity,  Civil Liability Insurance is mandatory for many companies and is highly recommended , as  it protects companies and self-employed workers against claims and compensation  from employees and third parties related to their activity.

The  premium for insurance of this type is highly variable , basically depending on the following factors:

  • Type of civil liability insurance and coverage included.

  • Covered civil liability capital, what we know as the insured sum and which is the maximum amount that the insurer would face to cover compensation.

  • Business activity or professional activity.

  • Number of employees.

  • Business billing.

Half price 

According to data published by  ICEA  corresponding to 2019,  the average premium for Civil Liability Insurance in 2019 was   575 .

However, the premium can be much higher depending on the activity and size of the company, in addition to the insured capital. The more workers the company has and the more it invoices, that is, the greater its volume of activity, the more expensive the insurance will cost.

Multi-risk insurance

Multi-risk policies  cover a wide spectrum of damages, accidents and incidents  that companies and businesses in general suffer relatively frequently: theft, fires, machinery breakdowns, floods,

damage due to storms and other atmospheric phenomena, etc.

In addition to Civil Liability Insurance, multi-risk insurance is commonly taken out by companies because  it offers good coverage for the most common incidents .

Half price 

The price is  highly variable , with the most influential reference parameters being the materials used in construction, the protection measures against fire and theft, the activity carried out, the nature of the goods stored inside, the insured capital (mainland or physical spaces) and the furniture, machinery and other covered elements (content).

The premium, therefore, is determined in each case according to its nature, size, and the value of the elements to be insured. A small business or company can take out Multi-risk Insurance for  approximately €400 .

Cyber ​​Risk Insurance

Another of the insurances that companies most demand today is cyber risk, in order to  protect themselves from the increasingly common attacks with viruses, malware and other methods .

The losses caused by a cyber attack can be very important and affect various areas of the company: loss of trust and credibility, claims for data theft, fines and administrative sanctions, direct economic damages for not being able to operate with certain systems, applications, pages website, online store, etc.

Half price 

It all depends on the size and activity of the company to be insured and the risks, coverage and services that you want to contract. Some insurers include preventive measures and security audits that make the policy more expensive. In any case, we can take out insurance of this type  starting at €350 for a basic policy .

Other insurance

In addition to the aforementioned insurance, most companies, including SMEs and many small businesses, find it necessary to  take out complementary insurance , such as:

  • Accident insurance for employees. With an approximate price of €800 for a company with about 10 workers.

  • Vehicle Insurance: Between €300 and €1,000 per insured vehicle, depending on whether it is third-party or comprehensive insurance, with or without excess.

Contracting business insurance is a very important issue for  any organization to feel supported and covered against possible damages and risks . Given the wide typology of insurance, insurance companies and diversity of prices, it may be advisable for companies  to resort to the services of an insurance brokerage or an insurance broker to receive advice  and help in contracting the most convenient insurance and paperwork. related.

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