Business Insurance Calculator

Guide to Using the Business Insurance Calculator

Welcome to the Business Insurance Calculator guide. This tool will assist you in estimating your annual and monthly insurance costs based on various parameters related to your business. Follow the steps below to effectively utilize the calculator.

Step 1: Enter Your Business Information

• Annual Revenue ($):

  Enter your business’s annual revenue. This should be a positive number and entered in whole dollars, stepping in increments of 1000 (e.g., 1000, 2000, etc.). Make sure this field is not left blank.

• Number of Employees:

  Input the total number of employees working in your business. The minimum acceptable number is 1, and this should also be a whole number.

• Business Type:

  Select the category that best describes your business from the provided options: Retail, Manufacturing, Office/Professional, Construction, or Service Industry. Each selection has an associated multiplier that will affect your insurance costs.

• Property Value ($):

  Enter the total value of the property relevant to your business operations. Again, this should be a positive number, entered in whole dollars, and should increase in steps of 1000.

• Previous Claims History:

  Select your past claims history from the given choices: No Claims, 1-2 Claims, or 3+ Claims. Each choice comes with a specific multiplier used in the insurance cost calculations.

Step 2: Calculation of Insurance Costs

• General Liability Insurance (Annual):

  This value is calculated using your annual revenue, business type, and claims history multipliers. The formula is: (annual revenue * 0.005 * business type multiplier * claims history multiplier).

• Property Insurance (Annual):

  The property value you entered, along with business type and claims history multipliers, calculates this insurance cost: (property value * 0.015 * business type multiplier * claims history multiplier).

• Workers Compensation (Annual):

  This is determined by the number of employees, augmented by business type, and claims history factors: (number of employees * 1200 * business type multiplier * claims history multiplier).

Step 3: Review Total and Monthly Costs

• Total Insurance Cost (Annual):

  Summed from the three types of insurance calculated above, giving you a comprehensive annual total.

• Monthly Payment:

  Divides the total annual insurance cost by 12 to provide the estimated amount per month that your business would need to pay.

By following these steps, you can effectively use the Business Insurance Calculator to estimate your business’s insurance expenses. Ensure all provided information is accurate for the best approximation.