How much would insurance for running a business cost?

How much would insurance for running a business cost?

• I was writing out a business plan for a carpet cleaning business and I'm trying to understand how much an insurance expense would cost. I don't have any idea. Could anyone give me an idea, and is there a way to roughly figure out what a businesses insurance expenses would cost for anything like a computer recycling company or running a bar? Any help would be greatly appreciated.

• Answer:

  It would completely depend on the type of company you ran. For example, a private medical practice will count insurance as it's most costly expenditure due to the potential liability of malpractice. A bar would have much higher insurance costs than a carpet cleaning service because of the potential liability of the effects of alcohol on the patrons. However, a carpet cleaning business will have to pay for worker's compensation, whereas those costs would be dramatically lower in a business run out of an office. It's also going to depend on the state that you live in, as all states have different requirements. Your company size and overall revenue will contribute as well. Also, are we including health insurance provided to employees? That's a big one if you are. All in all, I would expect insurance costs for a small business to be no less than 5% of total expenditures, but that number is barely a ballpark estimate considering how many factors are in play.