The amount of general liability insurance you will have to pay relies on a number of important variables.
The first and most important consideration is the kind of your company. If your firm is considered to be a high-risk enterprise, the cost of general liability insurance will be greater.
Some other factors that influence the cost of general liability insurance include the number of years your company has been in operation.
- Its size
- Location
- Condition of your building
- Policy details, including deductibles and coverage limits
- And the number of insurance claims filed against your company.
Purchasing a business owners policy (BOP) is a simple method to combine general liability insurance and commercial property insurance into a single policy. General liability insurance, on the other hand, maybe purchased on its own.
A monthly premium for general liability insurance is, on average, $42, according to the data. Small business clients at Insure on pay an average of less than $25 per month for their insurance, according to the company.
What is General Liability Insurance, and why do I need it?
One of the most important reasons to get general liability insurance is that your customers or employers may need you to have this coverage before they would do business with you.
A certificate of commercial general liability insurance will be required in order to demonstrate that you have insurance coverage. Generally speaking, a certificate of insurance is an official document that specifies all of the coverage types and limitations that are included in a particular insurance policy. A certificate of insurance serves as evidence of coverage. Once you’ve given a customer a copy of your certificate of insurance, you’ll be ready to do business.
Other business scenarios in which general liability insurance may be required include face-to-face meetings with clients, working on someone else’s property, and promoting your company.
The majority of companies need general liability insurance to protect themselves against lawsuits, investigations, medical expenses, and attorney’s fees and costs.
When it comes to business liability insurance, how much do you need?
It is possible that many commercial customers may need you to get general liability insurance before they will allow you to do business with them. These kinds of contracts usually need the purchase of a $1 million per event insurance coverage. Your insurance provider will pay up to $1 million for a single event covered by the business general liability coverage if you have this kind of policy.
What a General Liability Insurance Policy Doesn’t Protect against
The following are not covered by general liability insurance:
Accidents involving employees
In order to offer coverage for employee injuries, you will require workers compensation.
Accidents in automobiles
To be protected in the event of an auto accident while doing business, you must have a commercial auto insurance coverage if you own the vehicle, and hired or non-owned auto insurance will provide protection if you use a personal vehicle or rental vehicle for work.
Mistakes in the workplace
If you make a mistake while doing your professional duties, you will be protected by a professional liability insurance coverage.
Theft
In addition, general liability insurance will not protect your company’s equipment or property against theft or other types of harm.
Is General Liability Insurance a legal requirement in your state?
The purchase of business liability insurance is not required by law, but failing to do so leaves your company exposed to a broad range of claims that may potentially bankrupt your company if they are successful.