I run a small print shop with two employees. When I budgeted for insurance I figured maybe $2k a year for general liability. My broker quoted me $6,400 annually for a package policy. I was not prepared for that number. Is this normal or should I be shopping around more?
Insurance
I underestimated how expensive business insurance would be
Print shops are risky for insurers. Paper stock, solvents, machinery, delivery vehicles. $6k is not crazy if it includes property coverage and equipment breakdown.
I was shocked too. Small retail here. First quote was $4,800. Got three more and landed at $3,100 for similar coverage. Definitely shop around.
I only got one quote. That was probably my mistake. I will call a couple independent agents this week.
What does the $6,400 actually cover? If it includes commercial auto and workers comp that changes the math a lot.
Also check what your lease requires. My landlord demanded a specific limit and additional insured status. That pushed my premium up more than I expected.
Small service business here. My first year was $2,900. Renewal came in at $4,200 with no claims. Broker said the whole market hardened. I do not know if that is true but it hurt.
Do you have any client contracts that require higher limits? Sometimes you can lower your own premium by passing some risk to clients via contract wording. Worth asking an attorney.
It includes general liability, property, and business interruption. No auto. No workers comp because my state does not require it for two employees. Sounds like I need to compare apples to apples.
Workers comp might still be worth it even if not required. One injury and you are paying out of pocket.
That package sounds reasonable for a print shop honestly. The equipment breakdown and paper stock replacement can be significant. Do not just chase the cheapest quote.
Try a broker who specializes in commercial policies, not just someone who mostly does home and auto. They know which carriers are friendly to small print operations.
Also ask about higher deductibles. Raising mine from $1,000 to $5,000 cut my premium by about 18%. I keep that cash set aside instead.
The deductible idea is interesting. I will run the numbers on that versus keeping the lower deductible. Thanks.
One more thing: check whether your carrier offers a payment plan. Paying annually saved me about 5%.
My brother runs a small cabinet shop and his insurance is almost double what yours is. Different trade but still. Maybe printing is not as bad as I thought.