You’ve thought about protecting your business from liability claims, but worry whether you can afford general liability insurance cost. When you’ve worked hard, taken risks, sacrificed, and spent capital to launch your business, naturally you want to protect it against unforeseen accidents, injuries and property damage. That’s where general liability insurance – also known as professional liability insurance – comes into play.
If someone comes to your shop and slips and falls in your store, you could be liable for the injury to your customers, or damage to property 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.
To determine general liability insurance cost, each industry or business is rated differently based on its risk exposure (the biggest impact on GL insurance cost). A typical amount of coverage is generally between 1 million to 5 million dollars, 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, and a majority of them opt for $1 million occurrence limit/$2 million aggregate limit.*
* $1 million occurrence means that 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.
Your company’s general liability insurance cost depends on several factors:
- 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 I reduce my general liability insurance cost?
- Adjust coverage limits and deductibles. Discuss with your agent how this would affect your overall coverage and out of pocket costs when 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 obtain the cheapest general liability insurance plan at a price that fits 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, and help reduce your general liability insurance cost. Give us a call for a no obligation general liability insurance quote.