{"id":1356,"date":"2021-10-25T15:01:51","date_gmt":"2021-10-25T15:01:51","guid":{"rendered":"https:\/\/ribesalat.com\/how-much-does-an-insurance-policy-cost-a-company\/"},"modified":"2025-12-22T11:00:21","modified_gmt":"2025-12-22T11:00:21","slug":"how-much-does-an-insurance-policy-cost-a-company","status":"publish","type":"post","link":"https:\/\/ribesalat.com\/en\/how-much-does-an-insurance-policy-cost-a-company\/","title":{"rendered":"How much does an insurance policy cost a company?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In their day-to-day activities, <\/span><b>all companies have to deal with risks of different types<\/b><span style=\"font-weight: 400;\">. In view of this situation, <\/span><b>one of the main instruments<\/b><span style=\"font-weight: 400;\"> available to organisations to limit the impact of theft, fire, accident or any other type of unexpected incident <\/span><b>is to have a business insurance policy.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Many business owners and managers therefore want to know: <\/span><b>How much does an insurance policy cost a company? <\/b><span style=\"font-weight: 400;\">Although the issue is complex and there are numerous possible answers, we at <\/span><b>Rib\u00e9Salat will give you some guidelines<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>The price of insurance policy for companies depends on many factors<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The first thing we have to consider when calculating the annual budget we must allocate to insuring a company is that we are almost certainly going to <\/span><b>have to take out more than one insurance policy<\/b><span style=\"font-weight: 400;\">, as there are different types in the market, and for many activities some of them are compulsory.<\/span><\/p>\n<h2><b>Civil Liability Insurance<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Although <\/span><a href=\"https:\/\/ribesalat.com\/en\/products\/civil-liability\/\"><b>Civil Liability Insurance<\/b><\/a><span style=\"font-weight: 400;\"> is compulsory for many companies, depending on their activity, it is <\/span><b>highly advisable<\/b><span style=\"font-weight: 400;\"> for all companies and self-employed workers, as it <\/span><b>protects them against claims for compensation<\/b><span style=\"font-weight: 400;\"> from employees and third parties related to their activity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><b>premium for this type of insurance is highly variable<\/b><span style=\"font-weight: 400;\">, depending basically on the following factors:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The type of civil liability insurance policy and cover included.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The capital covered, which we refer to as the sum insured and is the maximum amount for which the insurer would cover compensation.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The type of business or professional activity.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The number of employees.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The turnover of the business.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/li>\n<\/ul>\n<h3><b>Average price\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">According to data published by <\/span><a href=\"https:\/\/www.bbva.com\/es\/empresas\/que-es-y-cuanto-cuesta-un-seguro-de-responsabilidad-civil-para-autonomos-coberturas-obligatoriedad-y-precios\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">BBVA<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><b>the average premium for civil liability insurance is between \u20ac500 and \u20ac600, although in large companies or those with a high risk, it can easily exceed \u20ac1,000.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Plus, the more workers the company has and the higher its turnover, the more expensive the insurance will be.<\/span><\/p>\n<h2><b>Multi-risk insurance<\/b><\/h2>\n<p><b>Multi-risk policies cover a wide range of damage, accidents and incidents<\/b><span style=\"font-weight: 400;\"> that affect companies and businesses in general relatively frequently: theft, fire, machinery breakdowns, flooding, storm damage and other weather conditions, etc.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition to Civil Liability Insurance, many companies take out a multi-risk policy, because <\/span><b>it offers good cover for the most common incidents<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Average price\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Prices are <\/span><b>highly variable<\/b><span style=\"font-weight: 400;\">, the most influential parameters being the building materials used, measures to prevent fire and theft, the activity in which the company is engaged, the nature of goods stored indoors, the premises, and their contents (furniture, machinery and other items covered).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The premium is thus determined in each case according to the nature, size and value of the elements to be insured. A small business or company can take out a multi-risk insurance policy for <\/span><b>approximately \u20ac400<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>Cyber risk insurance policy<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><a href=\"https:\/\/ribesalat.com\/en\/sectors\/tech\/\"><b>Cyber risk insurance<\/b><\/a><span style=\"font-weight: 400;\"> is another type of policy currently in great demand by companies<\/span><b> so that they can protect themselves from attacks using viruses, malware and other methods, which have become increasingly common<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The losses caused by a cyberattack can be very serious, affecting various areas of the company: loss of confidence and credibility, claims for data theft, fines and administrative sanctions, direct economic damage due to the company&#8217;s inability to operate with certain systems and applications, its website and online store, etc.<\/span><\/p>\n<h3><b>Average price\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Everything depends on the size and activity of the company and the risks, cover and services they wish to contract. Some insurers include preventive measures and safety audits that increase the cost of the policy. Generally speaking, you can take out this type of insurance <\/span><b>from \u20ac350 for a basic policy<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>Other policies<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In addition to the above policies, most companies, including SMEs and many small businesses, need to <\/span><b>take out complementary insurance<\/b><span style=\"font-weight: 400;\">, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accident insurance for employees. This will cost approximately \u20ac800 for a company with around 10 workers.<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/ribesalat.com\/en\/sectors\/passenger-transport\/\"><b>Vehicle Insurance<\/b><\/a><span style=\"font-weight: 400;\">: <\/span><span style=\"font-weight: 400;\">Between \u20ac300 and \u20ac1,000 per insured vehicle, depending on whether the policy is third-party or comprehensive, with or without excess.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/li>\n<\/ul>\n<h2><b>Factors that increase or reduce the cost of a business insurance policy<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Insurers assess the company\u2019s actual level of risk and translate it into a premium. For this reason, two companies of the same size can pay very different amounts.<\/span><\/p>\n<h3><b>1) Type of activity and level of business risk<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Insuring an office does not cost the same as insuring a workshop, an installation company, premises open to the public or an activity involving the handling of machinery, products or substances. <\/span><b>The higher the probability of a claim or the potential severity of damage, the higher the premium usually is.<\/b><\/p>\n<h3><b>2) Turnover, volume of operations and type of clients<\/b><\/h3>\n<p><b>The higher the level of activity, the greater the exposure to claims, incidents and losses. <\/b><span style=\"font-weight: 400;\">In public liability insurance, turnover and the type of activity carried out (services, manufacturing, distribution) are particularly influential.<\/span><\/p>\n<h3><b>3) Number of employees and third-party exposure<\/b><\/h3>\n<p><b>A larger workforce implies a higher risk of workplace accidents<\/b><span style=\"font-weight: 400;\"> and, in many policies, greater exposure to claims related to the activity. If there is customer-facing activity, frequent visits or regular subcontracting, the risk also increases.<\/span><\/p>\n<h3><b>4) Insured sums and declared values<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In multi-risk insurance, the premium depends largely on:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Building: <\/b><span style=\"font-weight: 400;\">value of the property or the insurable portion (depending on ownership and use).<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Contents: <\/b><span style=\"font-weight: 400;\">furniture, machinery, equipment, stock, goods.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The higher the insured value, the higher the premium. <\/span><b>Inaccurate declarations<\/b><span style=\"font-weight: 400;\"> can lead to underinsurance or overinsurance, affecting both price and quality of the cover.<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/li>\n<\/ul>\n<h3><b>5) Location, characteristics of the premises and security measures<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Relevant factors include the <\/span><b>area, access points, building height, neighbouring properties, history of thefts, as well as fire and theft protection measures<\/b><span style=\"font-weight: 400;\"> such as alarms, access control, security doors, detection and extinguishing systems. In general, better measures and sound risk management help to moderate the cost.<\/span><\/p>\n<h3><b>6) Claims history and risk management<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Recent or repeated claims can lead to higher premiums. Insurers also value the existence of prevention, maintenance, training and control <\/span><b>protocols<\/b><span style=\"font-weight: 400;\">, as these reduce the likelihood of incidents.<\/span><\/p>\n<h3><b>7) Excess, limits and payment method<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Higher excess: <\/b><span style=\"font-weight: 400;\">usually reduces the premium, as the business assumes a greater share of each claim.<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Higher limits or sums insured: <\/b><span style=\"font-weight: 400;\">usually increase the premium.<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Annual payment vs instalments: <\/b><span style=\"font-weight: 400;\">annual payment is generally cheaper than paying in instalments.<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<\/ul>\n<h3><b>8) Territorial scope and extent of coverage<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Operating in more territories, working on sites, travelling frequently, providing services at third-party premises or covering specific projects can increase the cost of a business insurance policy because the risk landscape changes.<\/span><\/p>\n<h2><b>Coverages that usually make the biggest difference to the price<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When comparing policies, much of the price difference comes down to specific coverages, limits and conditions. These are the ones that tend to have the greatest impact.<\/span><\/p>\n<h3><b>1) Indemnity limits and sub-limits<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Increasing the insured capital or liability limit raises the premium. <\/span><b>Sub-limits <\/b><span style=\"font-weight: 400;\">also matter, for example for theft, electronic equipment or aesthetic damage: a policy may appear similar but have much lower sub-limits.<\/span><\/p>\n<h3><b>2) Extended civil liability<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In civil liability, the following usually make it especially expensive:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employer\u2019s liability<\/b><span style=\"font-weight: 400;\"> (claims for personal injury arising from employment).<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Product and post-completion liability<\/b><span style=\"font-weight: 400;\"> (if you manufacture, distribute or install).<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Professional liability <\/b><span style=\"font-weight: 400;\">(if you provide technical or advisory services).<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Legal defence and bonds<\/b><span style=\"font-weight: 400;\"> with high limits.<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<\/ul>\n<h3><b>3) Loss of profits or business interruption<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It is one of the coverages that adds the most value and can also <\/span><b>influence the premium<\/b><span style=\"font-weight: 400;\">, as it covers loss of income and fixed costs following a claim (fire, flooding or others depending on the policy). Its cost depends on the margin, turnover and the indemnity period taken out.<\/span><\/p>\n<h3><b>4) Electrical damage and machinery breakdown<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In businesses with key equipment (machinery, industrial refrigeration, servers, production systems), the price of business insurance policy usually increases, but this cover is <\/span><b>decisive <\/b><span style=\"font-weight: 400;\">if an electrical failure or breakdown brings operations to a halt.<\/span><\/p>\n<h3><b>5) Theft with enhanced conditions<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Theft is not assessed in the same way across all sectors. The premium varies depending on:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Type of goods <\/b><span style=\"font-weight: 400;\">(value, ease of resale).<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Presence of safes, alarms, locks, CCTV.<\/b><b>\n<p><\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Limits for cash on premises, special items or shoplifting.<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">The broader and less restrictive the theft cover, the higher the cost tends to be.<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/li>\n<\/ul>\n<h3><b>6) Electronic equipment and data<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Computers, POS systems, design equipment, servers and critical systems increase the price when insured with high limits, replacement as new, rapid assistance or cover outside the premises.<\/span><\/p>\n<h3><b>7) Cyber insurance coverage: response and services<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In cyber risk insurance, the following have a significant impact:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Incident response<\/b><span style=\"font-weight: 400;\"> (forensics, containment, recovery).<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Crisis management and communications<\/b><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Data liability<\/b><span style=\"font-weight: 400;\"> and legal expenses.<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Extortion\/ransomware<\/b><span style=\"font-weight: 400;\"> (if included and with what limits).<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Preventive services<\/b><span style=\"font-weight: 400;\"> (audits, training, tools).<\/span><span style=\"font-weight: 400;\">\n<p><\/span><\/li>\n<\/ul>\n<h3><b>8) Assistance, response times, and additional services<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">24\/7 assistance, repair networks, fast loss adjustment or support services can increase the cost, but they are often critical when a claim occurs and the business needs to resume operations as quickly as possible.<\/span><\/p>\n<h2><b>A good insurance policy starts with professional advice<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Taking out a business insurance policy is a very important matter for <\/span><b>any organisation to feel supported and protected against potential damage and risks<\/b><span style=\"font-weight: 400;\">. Given the wide range of insurance types, insurers and price differences, at <\/span><b>Rib\u00e9Salat <\/b><span style=\"font-weight: 400;\">we support you by providing the advice you need so you can protect your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We assess your company\u2019s characteristics, its activity, the real level of risk and specific coverage needs in order to propose the most suitable insurance solutions, optimise costs and <\/span><b>ensure protection that is consistent with the reality of your business<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cost of business insurance is not fixed: it depends on the type of activity, the level of risk, the coverages selected, and the insured sums. At Rib\u00e9Salat, we review the most common types of business insurance, the factors that influence the price, and how to avoid overpaying without losing protection, offering practical advice for choosing the right policy for each company.<\/p>\n","protected":false},"author":12,"featured_media":909,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[40],"tags":[],"class_list":["post-1356","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance-and-financial-solutions"],"_links":{"self":[{"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/posts\/1356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/comments?post=1356"}],"version-history":[{"count":3,"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/posts\/1356\/revisions"}],"predecessor-version":[{"id":3468,"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/posts\/1356\/revisions\/3468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/media\/909"}],"wp:attachment":[{"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/media?parent=1356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/categories?post=1356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ribesalat.com\/en\/wp-json\/wp\/v2\/tags?post=1356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}