What Does Business Insurance Pittsburgh PA Cover?
Business Insurance Pittsburgh PA, Commercial Insurance in Pittsburgh, PA helps protect graphic design businesses from a variety of risks. Pennsylvania is home to more than 1 million small businesses, employing more than 2.5 million people. Whether you’re considering starting a graphic design business or already own one, getting business insurance Pittsburgh PA is an important part of your success.
Table of Contents
Types of Insurance Policies You Can Get for Your Graphic Design Business in Pittsburgh, PA
- Graphic Design Business Insurance Pittsburgh PA Entrepreneurs can obtain different types of insurance to protect themselves against different risks. This includes:
- Business property insurance to protect your owned or leased facilities, tools, equipment, and inventory used to run your business.
- General liability insurance to cover claims that your business has caused bodily injury or property damage to others. This form of liability coverage is also known as commercial liability insurance.
- Workers’ compensation insurance helps employees recover from work-related injuries or illnesses. Keep in mind that most employers require Pennsylvania workers’ compensation insurance.
- Commercial auto insurance if you or your employees drive company cars on business.
- Business Owner’s Policy (BOP), which combines general liability, business property, and business income insurance.
How Much Does Business Insurance Pittsburgh PA Cost?
Business insurance costs in Pittsburgh, PA vary. What you pay depends on your business and the types of coverage you choose. For example, some business owners paid an average of $1,052 per year for general liability insurance or $88 per month.2 For workers’ compensation insurance, business owners paid an average of $840 per year, or $70 per month.
Insurance companies use several factors to determine costs part of which are:
- Employee size
The best way to find out the cost of small business insurance Pittsburgh PA is to get a quote.
Not all insurance companies are the same. Some have over 200 years of experience and have helped over 1 million graphic design business owners.
You can get a quote online today from various insurance companies and see how they can help protect your business.
Calculate Business Income For Your Business Insurance Pittsburgh PA
Business income insurance, also known as business interruption coverage, helps cover lost income and additional expenses when your graphic design business closes due to a covered loss.
Covered business income is generally classified as taxable income. This includes all income derived from business activities. For example, suppose your graphic design company’s building has been damaged by fire. Business income insurance can help pay for lost income while your business is closed. It can also help cover additional costs you incur during the closing. For some, additional costs may arise if they are forced to relocate after covered damage.
Business Income Coverage Helps Cover:
Taxes: For example, let’s say your small business suffers a loss that forces you to temporarily close just before your taxes are due. Your business income insurance policy can help cover the costs.
Payroll: Let’s say you have five employees who need to be paid while your business is temporarily closed. Business income insurance can help cover these payroll costs.
Utilities: Let’s say you have to pay utilities for the next two months while your graphic design company gets repaired. However, you will not be able to open your trade until the repairs are complete. Your business income insurance can step in and help you pay your utility bills.
Lost Profit: For example, suppose your graphic design company suffers a large financial loss after being forced to close for the holiday season. Your business income insurance policy can help cover lost income.
Advertising: Suppose you owe advertising payments to the company that created your new advertising campaign. However, he recently had to close his business to repair the damage. Your business income insurance policy can help cover these advertising costs until you can reopen your business and make a profit. Advertising costs can also add up if you need to relocate your business after a covered loss.
Mortgages or rent: Let’s say you rent the building that houses your graphic design company. After a fire destroys parts of your business, it needs to be rebuilt. This is expected to take weeks. Your business income insurance policy can help cover the costs.
Once you know what business income insurance covers, you’ll want to know how to calculate total business income. Calculating your business income is important for your Business Owner Policy (BOP). Helps cover payments, income, or property damage in the event of a covered loss.
How To Calculate Business Income For Insurance
Calculate business income calculating your graphic design business income begins with reporting your gross receipts or sales. This includes all the items and services you sell in your business. Suppose you sell printed materials. Each item you sell will be included in this initial calculation.
If your graphic design business makes or buys products to sell and hold inventory, you must deduct the cost of goods sold from your income. You must do this when calculating your business’s gross profit.
Please note that any income you receive related to your business is considered business income. With that being said, your company’s sales will make up the majority of your company’s revenue.
Follow these steps to start your calculations:
- Calculate your total sales.
- Subtract your business expenses and operating costs from your total revenue. This calculates your company’s pre-tax earnings.
- Subtract taxes from this amount to find your business’s net income. Your net income becomes your business income.
- The business income equation is: Business income = income – expenses
How Much Does My Business Income Insurance Cost?
- Insurance Services Office (ISO) worksheets can be helpful in calculating business income. Following these worksheets can help you:
- Calculate how much revenue your business has generated in the last 12 months.
- Calculate your income for the future 12-month period.
- You can make your forecasts by adjusting your 12-month historical numbers to reflect the changes you expect for the coming year. If you expect your sales to increase by 10 percent, you can increase your revenue projection accordingly.
- Once you’re done with your 12-month income projection, you can estimate the payback period. To protect your business, estimates must be based on the worst-case scenario.
The exact cost of business income insurance is based on your own 12-month projection. However, it is important to have the help of an expert.