Posted by United Insurance & Financial Group, LLC on
As a refresher, general liability insurance is insurance for your small business that provides coverage against claims made by others for things like bodily injury, property damage, and personal injury. It’s sometimes referred to as small business or commercial liability insurance. This type of insurance would most likely cover the cost if someone came to your business and got injured or had their property damaged, and you were found to be at fault. It would also most likely cover the cost if someone had their reputation damaged by something you or an employee said.
But how much does general liability insurance cost?
General liability insurance is affordable for many businesses. According to one recent survey by Hiscox that spoke with 50,000 small businesses, most business owners will pay $30 or less monthly for their coverage, and 95% of small businesses spend less than $50 monthly for general liability insurance. The survey also found that only 1% of businesses pay more than $100 a month for their coverage. However, it is important to note that pricing can vary based on the insurance you choose for your business, so you may wonder what factors determine the cost of general liability insurance.
These Factors Determine the Cost of General Liability Insurance
For starters, your business location and industry will factor into what you need to be covered and the costs associated. If you conduct business or have an office in an area at greater risk for natural disaster or theft, you may pay a higher fee for your insurance coverage. If you’re a restaurant owner, you must ensure you are covered for a fire since you have employees working near an open flame. If you own a Pilates studio, you want to look into bodily injury coverage as people work out in your facility. Depending on what industry you’re working in, you will have different factors to consider, so it’s essential to take your time understanding your business needs, risks, and exactly what each insurance policy covers.
One way to lower general liability insurance costs is to look at coverage limits. A limit is the maximum amount an insurance company will pay if something happens. For example, if a small business has a $1 million limit per occurrence, the insurance company will pay up to that amount per claim. Typically, the lower the occurrence limit you choose for protection, the lower the monthly cost. It’s important to note that the more employees your business has, the more risk you carry, so it’s common for insurance costs to go up as the size of the company increases.
If you want higher limits, which means more coverage from the insurance company in case you need it, expect to pay higher monthly payments. It’s similar to looking at premium costs in health insurance policies; the lower the monthly expense, the less coverage you get if something happens. The higher the monthly cost, the more coverage you have if you need it. It’s all about looking at the risks for your business and choosing a plan that will protect you but isn’t too costly, either. According to Insureon, premiums are the most expensive for construction and contracting firms, cleaning services, and landscaping companies.
Another way to lower your general liability insurance cost is to reduce claims. Make sure you do everything you can to keep people and their belongings safe as a business owner. Use caution when handling other people’s property, reduce the possibility of injury to the best of your ability, and ensure your employees are well versed in safety guidelines.
Contact Us Today
At United Insurance and Financial Group, we understand how complicated it can be to know which type of insurance you should get to protect your small business. We encourage you to call us at 484-881-6848 to speak to one of our insurance experts one-on-one to help you decide which policy is best for your business. You can also send us a message here or speak to us in a chat box online by visiting our homepage (it’s a green circle located in the bottom right corner of our website). We look forward to helping you find the best coverage for your business needs.