How Much Does $1 Million Liability Insurance Cost?

How Much Does $1 Million of Business Insurance Cost?

On average, small business owners pay a few hundred to $1,000 dollars annually for $1 million of liability insurance coverage. However, liability insurance costs vary across businesses depending on factors like your:

Payroll size
Claims history
Industry
Exposure to risk

It’s also important to note that one million dollars in liability coverage isn’t always exactly what every type of business needs. You may need more or less coverage than that depending on your specific business.

To learn more about general liability insurance costs and what your insurance rates will be, get a quote today.

What Factors Affect the Cost for Business Liability Insurance?

Business insurance costs vary depending on your operation. To determine your insurance premium, insurance companies will look at your:

Industry
Type of assets
Number of employees
Size of payroll
Claims history
Property owned

how much does 1 million dollars of business insurance cost

They’ll use these factors to give you an aggregate limit for coverage that’s right for your business. Generally, you’ll pay a higher premium for coverage if your business:

Has employees that face risk each day on the job
Is in a high-risk industry
Has an existing history of insurance claims

To learn more about the insurance coverage limits you need, get a quote today.

What Does It Mean To Have $1 Million in Liability Insurance?

When you have a $1 million liability insurance policy, it means that your coverage will pay up to $1 million in damages for a covered loss. Any additional costs beyond this amount will need to be paid by you.

Other Kinds of Business Insurance

Workers Compensation Insurance

Workers’ compensation insurance helps provide benefits to employees with a work-related injury or illness. It can help:

Pay for medical care
Replace lost wages if your employee needs time off work to recover
Provide disability benefits

Generally, small businesses pay about $1 for every $100 in payroll for workers’ compensation coverage.

Business Owner’s Policy (BOP)

A Business Owners’ Policy (BOP) combines business property and business liability insurance into one convenient policy. It can help cover your business from claims resulting from fire, theft and other covered disasters.

While the cost of BOP policies vary depending on the coverages your business operations need, generally you can expect to pay a few hundred to a couple thousand a year.

3. Commercial Auto Insurance

Commercial auto insurance can help cover the costs of an auto accident if you or your employees are in a company-owned car.

The amount you’ll pay for commercial auto insurance depends on the type of vehicles your business uses to operate. In many cases, contractor-based businesses like electricians have a higher monthly cost than other types of businesses. Some other factors that can influence how much you pay include your:

Location
Amount of coverage chosen
Driving record

On average, commercial auto insurance policies cost businesses a few hundred to a couple thousand dollars a year.

Protect Your Small Business With Business Insurance From The Hartford

Small business insurance is essential for running a successful operation. We’ve been helping businesses for over 200 years get the protection they need. We can help you find annual premiums for coverage that work for your budget and business. To learn more, get a quote today.

Last Updated: August 11, 2022