This is a question that many Canadian small business owners wonder. Of course, budgeting is important, and having an idea of what necessary parts of your business will cost is all part of effective risk management.
If you are a small business owner, you might be worried that insurance is expensive. But don’t worry, it doesn’t have to be. And the price you pay for insurance is far lower than paying out of pocket for any accidents or lawsuits.
How Small Business Insurance Costs are Calculated
There are a number of risk factors that go into determining the cost of your small business insurance. Those include the size of your business, where it is located, and what you do. Here are some other pieces of information that you may be asked for in your quote:
- The industry your small business is in. Some industries are riskier than others.
- Where your business operates. If you have operations in the U.S. it may affect price.
- The value of your equipment. If you are a consultant who runs your entire small business off your laptop, that’s a lot less of a cost to repair or replace than a photographer with five cameras and ten lenses.
- How much revenue your business generates. If you’re a multi million dollar company, you will clearly have more risks than a small one-person shop, or a small storefront location with a couple of staff.
The Apollo platform takes all of those factors, adds them up and determines which insurance products are best for you. Keep in mind that depending on what your business is, you may need several different insurance policies to ensure you are properly protected.