In 2017, comprehensive insurance coverage requires a bit of money. Today’s businesses understand the importance of protection, and they’re formulating high-tier umbrella insurance plans to stay competitive.
Every industry is different, however, and each business has different needs. If you’re starting out, you should know which industries have the costliest umbrella insurance plans.
The $1M and $2M Umbrella Policies
A majority of small-business owners buy umbrella policies with $1 million and $2 million limits. Remember, umbrella insurance is additional coverage atop your general liability and non-owned auto liability policies. The price of $1 million and $2 million umbrella insurance policies varies greatly. However, several industries have it worse than others. As a benchmark, the median coverage cost is $915.
Business Consultants
Business consultants have one of the highest umbrella insurance costs, sitting at around $2,500. This makes sense, as business consulting is incredibly high risk. Taking care of another’s assets, long-term financial planning and day-to-day operations is a hefty job to have.
Contractors
Contracting is a close runner-up. Costing around $2,300 for coverage, contractors exist at the top end of the “risk” chart. Construction and contracting companies can pay as much as $2,410 for umbrella coverage. Janitors and maids, meanwhile, must only pay $1,130 due to their lower responsibility.
Insurance Agents
It might be surprising, but insurance agents are also high-risk business operators. Insurance costs vary widely based upon the type of insurance a business purchases. When it comes to ongoing costs, insurance agents are definitely higher risk than other business operators—spending about $1,800 for coverage.
What Do Average Small Businesses Pay?
Again, the median cost for small business umbrella coverage is about $915. A portion of small business owners can pay as little as $600 per year, however, if they have relatively low risk and have a solid policy. A business’s industry can impact insurance costs significantly, and operators should take in the fine details before settling on a plan.
In general, you should try to lower your risk as much as possible. While your industry can’t usually change in the eyes of your policy providers, you can still reduce costs where possible. Take charge with your day-to-day operations, and make sure your insurance coverage is as good as it can be. Double-check your policy term’s payments, and reduce any unneeded extra coverage. It might surprise you how much you can reduce your business insurance costs by.
We've got you covered. Call Porter-Brandenburg Agency, Inc at (972) 234-5588 for more information on Dallas umbrella policies.