You’ve thought about protecting your business from liability, but worry whether you can afford the general liability insurance cost. You’ve worked hard, taken risks, sacrificed, and spent capital to launch your business. So protecting it against unforeseen accidents, injuries and property damage is important. That’s where general liability insurance – also known as professional liability insurance – comes into play.
Types of business liability
If a customer comes to your shop and slips and falls in your store, you could be liable for the injury. Damage to others’ property can happen in the course of providing your products or services. A simple accident or injury could lead to a major financial burden if you don’t have liability protection. General liability insurance protects your company against bodily injury and property damage claims.
How is general liability insurance cost determined?
A company’s general liability insurance cost is rated based on its risk exposure (the biggest impact on GL insurance cost). A typical amount of coverage is generally between $1 to $5 million, and premiums can vary from $700 to several thousand dollars per year. Many small businesses are able to purchase a GL insurance policy that costs $600 to $1,200 annually. A majority of them opt for a $1 million occurrence limit/$2 million aggregate limit.*
* $1 million occurrence means the insurer will pay up to $1 million for any single claim while the policy is in effect. $2 million aggregate means that the insurer will pay up to $2 million in claims over the lifetime of the policy.
Factors considered in general liability insurance cost include:
- Business type or industry
- Risk exposure
- Location or locations
- Number of years in business
- Area or shop square footage
- Number of employees
- Business credit history, and ratings
- Any losses in the past
- Annual sales
- Amount of coverage
How can you reduce your business insurance costs?
- Adjust coverage limits and deductibles. Discuss with your agent how this would affect your overall coverage and out-of-pocket costs if a covered loss occurs.
- Enact or improve workplace safety standards. Keeping employees and customers safe helps minimize your risk exposure and lowers your premiums.
UltraCar Insurance can help you get a business insurance plan at a price to fit your budget and business needs. We also provide commercial auto insurance at competitive rates for your business use vehicles. Whether you run a small to medium sized landscaping company, accounting firm or IT service, we offer solutions to protect your business from financial exposure. We’ll be happy to discuss how you can reduce your general liability insurance cost. Talk with an agent for a no obligation general liability insurance quote today!
This article was last updated on October 29th, 2019 by UltraCar Insurance