While certain types of insurance like workers’ comp and auto liability are required by law in most states, there are other forms of coverage worth considering if you run a business. General liability insurance, professional liability insurance and business equipment protection are all designed to help you protect your business financially from future events.
The amount you pay for insurance can vary greatly depending on what you do, how big your business is and where you’re located. Use this calculator to get a clearer picture of the price of different insurance coverages for your business.
How to use the tool
- Number of employees – Enter how many employees you currently have. If you’re anticipating growth in the near future and aren’t sure exactly how many employees you’ll have when you purchase insurance, try a few different numbers out to get a feel for the range of costs.
- Profession – What kind of work do you do? Select your profession from the drop-down menu. If your exact profession isn’t one of the available options, look for a more general profession that would categorize what you do.
- ZIP code – Insurance costs are different depending on where you live. Generally, more populated areas have higher costs than less populated locations. If you’re torn between a few possible locations to start your new business, this could be a useful way to help make the decision.
- Value of equipment – Enter the estimated value of all the equipment you use (except for vehicles and smartphones) for your business operations.
- Coverage amount – Choose between $1M or $2M in general liability insurance coverage. Note that the difference in cost between $1M and $2M coverage is minimal when you consider that you’re getting twice as much financial protection.
How rates are calculated
The cost of insurance can vary greatly depending on where you are, what you do and how much coverage you need. Here’s how it works:
The kind of business you run
Every line of work has a different risk profile. Professions that involve a lot of physical work on customer property have a higher risk than professions that involve very little physical interaction. Generally speaking, the higher the risk of third-party bodily injury or property damage associated with your business, the higher your premiums are likely to be.
Location is another factor that affects the cost of insurance. Certain areas have higher claims risks than others. At Thimble, we use your ZIP code to map you to a risk territory, which uses historical loss data to adjust the cost of your insurance.
How much coverage you need
At Thimble, you can choose between $1M or $2M of liability insurance coverage. The amount of coverage you choose, along with your business type and location, will help determine the cost of your insurance coverage.
Types of insurance and who they’re for
Your insurance needs will vary depending on your type of business. Here’s a breakdown of the three different categories:
General liability insurance is the most crucial type of insurance for nearly any business. It protects your business against financial losses resulting from third-party bodily injury or property damage claims. Without general liability insurance, an accident that results in a single big claim can be enough to put you out of business.
At Thimble, we strongly recommend that you carry general liability insurance, whether you’re a consultant, provide a service or do more hands-on work. Because no matter what kind of business you operate, you never know what’s going to happen on that next job.
Business equipment protection
From precision tools to high-powered photography lenses, the equipment you use are tremendous assets to your business. Without them, you wouldn’t be able to provide your customers with outstanding service. Having to replace them unexpectedly could mean a significant financial setback for your business.
Where general liability insurance protects you in the face of third-party claims, business equipment protection insures the cost of your equipment if it’s accidentally damaged, lost or stolen.
Unlike a commercial property policy, business equipment protection works even if you’re on the go. If your tools get damaged at a job site or your gear gets stolen at a client’s location, business equipment protection has you covered.
General liability plus professional liability
For some business owners, the risks of doing business extend beyond physical damage to people and property. If your business involves consulting, professional services, or business-to-business (B2B) services, you also have to consider potential monetary damages to your clients and customers.
If a perceived mistake in your providing advice results in a customer experiencing a financial loss, you could end up facing negligence claims. Without the protection of insurance, the claim might lead to costly defense costs and multiple court appearances.
That’s where professional liability insurance comes in. Also known as errors & omissions insurance, it covers claims of negligence and errors in the advice you provide, or don’t provide. It will provide you with defense in legal proceedings and even defend you against false or frivolous claims.
Get your insurance quote from Thimble
No matter what your business is—from fitness instructor to furniture installer—you need the right insurance to cover yourself from potential financial losses.
At Thimble, you can get the right insurance for your business, on-demand. Looking for coverage by the hour, day, or week? Our flexible insurance plans allow you to tailor your coverage needs to your specific situation.
Getting a quote is fast and easy. Simply enter your information into the calculator at the top of this page and select “Get a Quote.” If you’re happy with your quote, you can purchase coverage with a single click and have your policy and Certificates of Insurance (COI) in your inbox in a matter of minutes.