NLIC.org

Anthony Said:

Commercial Insurance?

We Answered:

Wow, that's a huge business.

For workers compensation, it's going to be about 20% of payroll, which you didn't mention. General liability is probably going to run you, oh, maybe $50,000 to $75,000. Figure $3,000 per truck, assuming clean driving records and no drivers under 25. Your bonds will be expensive, though (as government work requires bid, payment & performance bonds). Probably six figures, as you're bids are probably going to be well into the millions.

Health insurance, figure $450 per employee, $1500 per employee plus family, per month.

In the real world, of course, this would never happen - you can't walk in with no experience and pick up those huge bonds; and you can't support 20 employees right away. But this is school, so real world constraints flat out don't apply (silly, huh? but there it is.)