If you came here hoping for a neat little answer like, “Business insurance costs $X per year,” brace yourself: it doesn’t work that way. Insurance pricing is more like the wild — every business has its own habitat, risks, and prey (a.k.a. exposures).
For example:
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A nightclub with a big dance floor, live entertainment, and high liquor sales? Premiums can easily hit $100,000+ per year.
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A small neighborhood bar with modest sales? More like $5,000.
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A carpenter focused on basic trim work? Around $1,200. But if stairs or railings are in the mix, that can jump to $4,000–$5,000.
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A handyman? Sometimes half of a carpenter’s rate.
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A contractor doing any excavation work? Expect $5,000 or more right out of the gate.
And that’s before you factor in location, claims history, revenue, payroll, and a dozen other variables.
What Really Determines the Cost
Insurance carriers don’t spin a wheel to set your premium (though it may feel that way). They look at:
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Type of work performed. “Carpenter” is broad. Building decks vs. stairs vs. railings? Big differences in risk — and cost.
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Sales and payroll. More revenue, more employees = bigger exposure.
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Location. Downtown Seattle isn’t the same as rural Spokane. ZIP codes, crime rates, and fire protection all matter.
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Risk factors. Dance floors, excavation, liquor service, heavy machinery — they all get noticed.
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Coverages chosen. General Liability covers slips, trips, and lawsuits — but it does not cover your building, business personal property (BPP), or equipment.
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Business Owner’s Policy (BOP) bundles some of these coverages for eligible businesses, but not all industries qualify. Bars, contractors doing high-risk work, and specialty operations often need separate policies.
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Claims history. A clean record keeps you in alpha territory. Frequent claims? Expect to pay.
Common Misunderstandings
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“I’m covered if something happens to my building or tools, right?”
Nope. General Liability doesn’t touch property. If you want coverage for your structure, equipment, or business personal property, you need property coverage, usually as part of a BOP or a stand-alone policy.
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“Can I just buy a BOP and be done?”
Not always. Some industries are too high-risk, and carriers won’t offer a BOP. You may need multiple specialized policies to get full protection.
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“Isn’t insurance cost mostly based on my industry?”
Industry is a factor, yes, but your operations, revenue, and risk profile matter just as much. Two carpenters doing different work can have premiums that differ by thousands of dollars.
Illustrative Examples from the Wild
Here’s a peek at the range we see in Washington businesses:
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Handyman: ~$600/year — low-risk, limited scope
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Carpenter (basic framing): ~$1,200/year — standard residential work
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Carpenter (stairs/railings): ~$4,000–$5,000/year — higher-risk, potential for falls
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Neighborhood bar: ~$5,000/year — moderate liquor, low entertainment
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Nightclub with live entertainment: $100,000+/year — high-risk, liquor, large crowds
These are ballpark ranges, not quotes. They show how “one word” (like carpenter or bar) doesn’t capture the risk.
How to Lower Your Premium (Without Losing Coverage)
Even in the wild, alpha wolves know when to play smart. You can influence your business insurance costs:
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Reduce risk where you can. Safer operations = cheaper premiums. Example: guardrails, safety training, or limiting hazardous work.
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Bundle coverages when eligible. BOPs can save money — but only if your industry qualifies.
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Review policies annually. Business changes, and so should your coverage.
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Maintain a clean claims history. Avoiding small claims can keep you in the “pack leader” tier.
Why the Only Real Answer Is a Quote
Chasing averages online is like asking the pack how much a rabbit weighs — you might get an answer, but it won’t help when you’re hungry. The only way to know what your business insurance costs is to get a tailored quote.
At Hood Insurance Agency, we:
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Understand Washington business risks
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Know which carriers fit which industries
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Separate GL, property, BOP eligibility, and specialty coverages
No fluff. No guessing. Just numbers you can actually use.
Bottom line:
Business insurance in Washington isn’t $42/month. It’s whatever your combination of industry, operations, and coverages dictates. Want a real number from wolves who know the territory?
👉 [Get a quote today — faster and more accurate than Google.]