5 Businesses With the Lowest Insurance Rates

Insurance is an essential investment for any business that cares about its future. The cost of a natural disaster or somebody being injured on the premises could lead to you paying medical expenses and legal fees out of your own pocket.

With the business insurance industry worth $240 billion in the U.S., most businesses take out insurance. However, premiums are a concern. So how do you know if you’re getting a great deal, and how can you predict what you should be paying?

In the world of insurance, it’s all about risk.

Why are Some Industries More Expensive to Insure?

The type of business you’re in will be the most significant factor influencing the cost of a tailored general liability policy and commercial property insurance.

The discrepancies between the industries go back to the level of risk. Some industries come with greater risks than others. For example, some of the most dangerous industries in America are the agricultural and construction industries.

It will always cost more to insure a business throwing around heavy machinery than one that operates entirely out of a single office block. Your insurer will examine your industry to determine a fair price for selecting insurance policies.

Types of Insurance

Businesses typically hold more than one type of policy. So while there are more bundled options than in previous years, all companies should still consider the big three of liability insurance, worker’s compensation, and property insurance.

Your insurer will examine each type of coverage and the amount of coverage sought to come up with a tailored quote for your organization.

Let’s look at the factors that will define the cost of each type of insurance.

Liability Insurance

Liability insurance protects you should an employee or member of the public injure themselves on your premises as a direct result of your business activities.

Liability insurance is often the costliest form of insurance because when a claim is made, it is usually in response to severe injuries.

For example, if you’re running a demolition firm, you have a greater risk of injury to your employees since you will be handling heavy machinery and explosives. Higher risk will always mean higher premiums.

Blue-collar industries will always cost more to insure for liability than white-collar professions for obvious reasons.

Property Insurance

Property insurance rates are influenced mainly by the value of your building and physical assets. If you are a niche manufacturer carrying out highly detailed work that few others can match, the chances are you’re using specialized tools. Those specialized tools will cost more to insure through your property insurance policy.

Any business working with chemicals, hazardous substances, or explosives will also see the cost of their property insurance soar due to the elevated risks involved.

An insurer will examine the risk of an accident occurring and the value of the building and the goods inside. It should also be noted that if your business is located in a location that experiences bouts of extreme weather, you can also expect to pay more.

Be aware that businesses must readjust their commercial property insurance policy if they expand their operations.

Workers’ Compensation Insurance

Workers’ compensation insurance is required in practically every state where you have taken on employees. It provides coverage for employees who are injured while on the job. Therefore, if one of your employees is injured, they will continue to receive a regular income and have their medical costs at least partially covered.

Insurers tend to examine safety records when assessing a workers’ compensation insurance quote. Therefore, if you have a history of making claims or are in an industry with a poor safety record, expect to pay more.

However, you can also be rewarded with lower-than-average premiums if you have demonstrated an impeccable safety record over several years.

Which Industries Have the Lowest Insurance Rates?

If you examine the deadliest jobs in America, you can quickly see which industries will invite the highest insurance premiums. However, which industries are likely to yield the lowest insurance rates for businesses?

Computing

Computing occupations report the lowest number of injuries and fatalities of any job. The primary risk of computing is back problems, with poor posture and general ergonomics being blamed for these issues.

Employers should also be aware of repetitive strain injury caused by working too many hours without a break.

Education

Educators at all levels also enjoy an industry with some of the lowest insurance rates around. Working in a library or school is pretty safe, with few physical tasks to get to grips with and no contact with hazardous substances.

Registered Nurses

Many people are surprised to learn that registered nurses also enjoy low fatality rates. This is because stringent health and safety regulations, alongside intensive training, have made being a registered nurse one of the safest businesses to be in.

Finance

Finance is another of the most affordable industries to insure. Typically, most incidents in finance are not related to the job at all but transport.

Since most work takes place in relatively safe locales from a computer, there is little to make insurers nervous.

Healthcare Practitioners

For the same reasons registered nurses see one of the lowest fatality rates in their business, healthcare practitioners enjoy similar benefits.

High levels of training and health and safety enforcement contribute to a near risk-free role.

Conclusion

Insurance premiums are one of the reasons why many new entrepreneurs consider going without several types of insurance policies. Legal requirements regarding business insurance often stop at workers’ compensation insurance.

However, awareness of the risks of not being insured and disaster striking remains crucial. One natural disaster or act of theft could wipe your business off the map. However, comprehensive insurance gives you everything you need for a fresh start.

Which insurance policies does your business currently hold?