Professional services
Small Business Insurance Calculator
Totals insurance for a small business, where the gaps between policies are the exposure.
Result
An estimating tool, not insurance advice and not a quote. Actual premiums are set by underwriting on factors no calculator sees: claims history, credit and loss data, exact location, construction, contract requirements and the insurer's own appetite. What cover you need is a question for a licensed broker who has looked at your situation. A business owner's policy bundles general liability and commercial property at a lower combined cost than buying them separately, but eligibility is restricted by size and industry and the standard forms exclude several things smaller businesses assume are covered: professional liability, employee injury, vehicles and cyber.
Get a Free Business AuditHow the calculation works
Each line totalled annually and monthly with the share of revenue shown. A typical small business programme is general liability, property and contents, commercial vehicle where relevant, workers compensation where there are employees, and professional liability where advice or services are provided.
What moves the number
- Revenue and payroll, which rate most lines.
- Industry classification.
- Whether a package policy or separate policies are used.
- Limits and deductibles.
Where this one goes wrong
Package policies combining liability and property are efficient and they also create the impression of complete cover, which is where the gaps live: professional liability, cyber, employment practices and business interruption are frequently outside the package and frequently assumed to be inside it. Read the schedule for what is listed rather than relying on a description. The second common gap is growth, since limits and values set at the start are rarely revisited while the business doubles.
Before you quote
- Read the schedule for what is actually listed.
- Identify which exposures sit outside the package.
- Review limits and values as the business grows.
Where the rules come from
Questions
About this calculator
Does a business owner's package cover everything?
No, and the impression that it does is the main risk. Professional liability, cyber, employment practices and business interruption are frequently outside the package while being assumed inside it. Reading the schedule rather than the description is what reveals the gaps.
What changes as a small business grows?
Limits and values set at the start are rarely revisited, so a business that doubles is often carrying cover sized for half its exposure. An annual review against current revenue, payroll and asset values is the cheapest risk work available.
Do I need workers compensation with one employee?
In most states yes, and the thresholds vary, with some requiring it from the first employee. Operating without it where it is required carries penalties well beyond the premium, so the state's own requirement is the thing to check.
The formula
premium = exposure / rate basis x rate x risk multiplier, less deductible credit, plus claims loading
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How to use this calculator
- Annual revenue ($). Enter your own figure; the page starts at $620,000.
- Rate per $1,000 of revenue. Enter your own figure; the page starts at 7.5.
- Risk classification. Enter your own figure; the page starts at Typical (1.0x).
- Deductible ($). Enter your own figure; the page starts at $1,000.
- Claims history loading (%). Prior claims increase the premium, sometimes sharply.
- Minimum premium ($). Enter your own figure; the page starts at $750.
The result updates as you type, so you can try a figure, see what it does to estimated annual premium, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Annual revenue | $620,000 |
| Rate per $1,000 of revenue | 7.5 |
| Risk classification | Typical (1.0x) |
| Deductible | $1,000 |
| Claims history loading | 0% |
| Minimum premium | $750 |
What comes out
| Result | Value |
|---|---|
| Estimated annual premium main result | $4,314 |
| Per month | $359.50 |
| Before loadings | $4,650 |
| Credit for the deductible | $335.95 |
| Effective rate on exposure | 0.70% |
Roughly $4,314 a year, about $359.50 a month, which is 0.70% of the exposure. Underwriting will move this considerably.
How sensitive the answer is
Holding everything else steady and changing only annual revenue, this is what happens to estimated annual premium. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Annual revenue ($) | Estimated annual premium |
|---|---|
| $310,000 | $2,157 |
| $465,000 | $3,236 |
| $620,000 example above | $4,314 |
| $930,000 | $6,471 |
| $1,240,000 | $8,628 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Annual revenue ($)
- A money amount, starting at $620,000.
- Rate per $1,000 of revenue
- A number, between 0 and 500, starting at 7.5.
- Risk classification
- Choose from Low risk (0.75x), Typical (1.0x), Higher risk (1.6x), High hazard (2.5x).
- Deductible ($)
- A money amount, starting at $1,000.
- Claims history loading (%)
- Prior claims increase the premium, sometimes sharply.
- Minimum premium ($)
- A money amount, starting at $750.
What the results tell you
| Result | What it is |
|---|---|
| Estimated annual premium | The headline result. A money figure. |
| Per month | A money figure. |
| Before loadings | A money figure. |
| Credit for the deductible | A money figure. |
| Effective rate on exposure | A percentage. |
Keep going
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