Cheapest General Liability Insurance For Small Business

For somebody who owns a small or a medium-sized business, one of the most important things is to ensure that your business is insured properly. One of the most important types of business that a small business or a medium business needs are general liability insurance. General liability insurance covers all the damages that arise from general liabilities – for instance, if your customer falls down and get injured on any part of your property, you may be liable to reimburse them for damages as well as for medical expenses. If you get general liability insurance, you will find that such liability is covered under the insurance plan. Basically, this type of insurance protects the owner of a business or of a commercial establishment from being held liable for any damages that might occur in any property under his care. 

 

There are various types of liability claims that fall under the general insurance liability category. For instance, there may be clean related to property damage, loss of personal data, injury of a person, etc. If such liability arises either within your own premises or due to a reason that is related to the operation of your business and on your property, you will be required to pay for the damages that arise from such liability. In such a situation, it is a great idea to have general liability insurance, and the fact of the matter is that general liability insurance usually costs less than other types of full coverage insurance. 

cheapest general liability insurance

Some types of liability insurance other than general liability insurance

Apart from general liability insurance, there are other types of liability insurance as well such as employer liability insurance, professional liability insurance, and D&O liability insurance. Here is a small description of each of these types of insurance. 

 

D & O Liability Insurance

This refers to directors and officers liability in a business enterprise. Usually, the directors and the officers of a business are responsible for taking important management decisions. This type of insurance covers the rest of the enterprise, and the employees of the enterprise in case of any error, failure to act, or negligence on the part of any of the directors or officers. 

Employer Liability Insurance

Sometimes, depending on the type of workplace environment, the worker might get injured. Even in those workspaces which do not involve any hazardous or manual work, there’s still a chance of an employee getting injured. Therefore, employers are required to maintain workers compensation funds in the form of employer liability insurance. If any employee gets injured while under your employment, you may be required to reimburse him for various expenses. This insurance covers that type of scenario. 

Professional Liability

Professional Liability insurance is the type of insurance that protects professionals from claims against negligence, and claims that have a tortious basis. The professionals may be accountants, doctors, lawyers, etc. This type of liability insurance attempt to ensure the safety of the practising professional from various claims. This insurance is important and ideal for professionals because general insurance usually does not cover these types of claims. 

 

Who needs to get general liability insurance?

One Of the scary part about running a small business is the fact that you never know when you are going to be hit with a lawsuit. You should be prepared should this unfortunate are you ever arise and know how to handle it so that both your expenses and the reputation of the company are safe. General insurance usually does not cover liability that arises in commercial establishments or in business. It is therefore important to get general liability insurance cover for your business if you want to ensure that you remain safe and you have a financial plan in case you are held liable for any expenses. Here are some circumstances under which you will need to have general liability insurance. 

  • If you have a large amount of footfall in your business, that is if a lot of customers visit your store or your business, it is important to have general liability insurance.
  • If your business or service involves you going to the workplace of the client in order to perform your services.
  • If you are required to handle the equipment of the clients or if you are given access to such equipment, it is ideal to have general liability insurance.
  • If your business oil service requires you to hire or rent any 3rd party property or location for activities related to your business, it is important to have general liability insurance.
  • Various states have different rates of general liability claims. If you hey live in an area where litigation is rampant or is the cost of these claims are extremely high, it is safe for you to get general liability insurance. 
  • If your business involves a lot of manual labour or the possibility of your employees or any of the people on-site getting injured, in such situations you should get general liability insurance. 

 

What does general liability insurance cover?

As with any other type of insurance, what is covered under an insurance plan exactly depends upon the plan and the insurance company that you are taking the insurance from. However, when it comes to general liability insurance, the coverage offered under this insurance can be broadly divided into 4 categories. Usually, general liability insurance is taken by small and medium-sized businesses to protect themselves against any 3rd party claims. Here is what general liability insurance usually covers. 

 

  • Personal or bodily injury coverage
  • Property Damage coverage
  • Advertising injury coverage 
  • Product-related (product liability) coverage 
  • IPR coverage 

Bodily Injury

If your business is such that it sees a lot of footfall, and if there is a constant movement of customers and employees across your business premises frequently, it may be important for you to get an insurance plan which has coverage for bodily injury. For instance, at a lot of fast food joints, the sign “caution – wet floor” is prominently displayed. This is because, if a customer falls down and gets hurt on the wet floor, the establishment can be held responsible for the injury, and be sued. 

Property Damage

Apart from damage to persons, there is also a likelihood of damage to property as well. For instance, if you run a construction business, there are chances that you might accidentally damage a part of the property. Irrespective of what caused the property damage, you will be held liable for it and sued for it as well. Therefore, it is important to ensure that you take a coverage plan that covers property damage as well.  

Personal Injuries

Personal injury is a little different from bodily injury also often mistaken for the same. When your product or your brand gets famous, there may be people talking about or sharing facts related to your brand. Similarly, you may also undertake advertising and marketing campaigns to promote your brand. In such a scenario, if you say anything about another company or another brand that might affect their business, you might be sued for libel or slander. Having a personal injury insurance coverage will protect you from liability. 

Product Liability

Product liability insurance is extremely important for those businesses that are driven by their products. For instance, irrespective of whether you run a commodity type product business, or you are in the food industry or toys, if you supply a product to the customer it is important that you should have product liability insurance. It is because, if any injury occurs to the person using your product, you could be held liable for it. In such a scenario it is tremendously helpful to have product liability insurance. 

Infringement of Copyright

IPR is one of the most important things about running a business because your intellectual property sets you apart from your competitors and gives you a great edge. You might have to both protect your copyright, as well as fight claims of infringement if you are a small company that is starting out on their own. In such a scenario, given that an IPR legal battle can prove to be expensive, having infringement of copyright-related insurance cover can be tremendously helpful for you and your business. 

 

What is the average cost of general liability insurance?

if you are wondering about the average cost of general liability insurance then let us tell you that, one of the great things about general liability insurance is the fact that the cost of general liability insurance is much lower than other types of insurance such as car insurance and home insurance. It is important to choose a type of insurance that has good and decent coverage, but that is also not too expensive. There are multiple insurance companies offering general liability insurance at different costs and with different coverage plans. 

It is estimated that small businesses spend about 400$ to 600$ every year for general liability insurance coverage. There are various factors which determine how much an insurance company may charge for general liability insurance. The biggest determining criteria are how risky your company is or what are the risk factors that you have to deal with. Here are some of the things that mean make an impact on how much your general liability insurance costs. 

  • One of the thing that affects the cost of general liability insurance is the type of business that you run, and what the size of your business is. 
  • Perhaps most important, one of the factors that affect the cost of general liability insurance is what the risk your business faces is, and whether your enterprise is risky. 
  • If you have to provide insurance to your employees, hey then the number of employees that your business has may also be a factor that determines how much general liability insurance you may have to pay.
  • Your location is another factor which determines how much general liability insurance you may have to pay.

 

How can I as a small business get the cheapest general liability insurance possible?

A lot of people who run small businesses find that it is extremely important to ensure their businesses with the right kind of general liability insurance policies to ensure that they do not face issues in case any liability arises. There are various steps that you can take to find the ideal policy for your business and for yourself. Here are some tips that may help you find the right kind of general liability insurance policy.  

Compare Quotes

One of the first thing that you should do if you plan to take general liability insurance is research the various insurance companies that provide this type of insurance service and compare quotes between the different companies. It is not at all difficult to do so and with a little bit of research, you can save yourself a significant amount of money. Usually, it makes sense to check factors such as the carrier rating and the financial strength of the insurance company that you plan to take your policy from. You can also check the aspect of deductibles when you plan to get liability insurance. Ensure that you check the terms of the policy properly, and see whether if it is within your budget. It might make sense to get a slightly more expensive policy if it has a much more comprehensive coverage than a policy which offers no coverage at all. 

Add your general liability policy to an existing insurance policy

Apart from general liability insurance, you are likely to have other types of insurance as well. For instance, most people have life insurance, home insurance, and car insurance. For those who are running a small or medium-sized business, or any type of commercial establishment, you can check out whether you can add your insurance policy for general liability to one of your currently existing insurance policies. These types of policies are commonly referred to as umbrella policies and they are great for saving a significant amount of money. 

Of these types of policies, one of the most common and popular ones is a business owner policy or a BOP which offers significant general liability insurance discount. For instance, a business may already have property insurance or commercial liability insurance – in such a case, you can just add general liability insurance to the combination as well. If you do not already have these types of insurance but plan to take a new policy, then you can take general liability insurance when you are ensuring your business with other types of insurance policies as well.

If you take your insurance policies under the same company you are likely to be entitled to significant discounts which can save you a huge amount of money. Consider doing this if you want to save some money on your general liability insurance policy.  

It is clear to say that you need to get coverage in the same insurance company. The insurance company will also go on with good business relationships as they also will consider you a good business partner.

 

What are some steps to take to get the cheapest general liability insurance for small business?

If you have a small business not only is it important to handle your business well and to ensure quality in products and services to your customers, it is also important to protect yourself against any liability that might arise from running your business. It is for this reason that general liability insurance is so important. However, when you are running a small or a medium-size business it can often become difficult to find funds to pay for an extremely expensive insurance coverage policy for general liability. However, this is not to say that one cannot get a good general liability insurance coverage without paying tons – all you need to do is some research and there are many policies which will fit your criteria. Here awesome steps that you can take to reduce the cost of insurance if you are planning to take a general liability insurance coverage for your small business.

Keep your business in compliance with a code of conduct

One of the most important things that you should do and you should keep in mind is that it is important to follow the code of conduct for your business. Each industry and each business has different standards on what is appropriate, and as a small business, you should attempt to adhere to these standards. If you have a strong brand reputation, and if your business or service is viewed as a reliable and authentic enterprise, the chances of you getting insurance coverage at a lower rate are much higher. Furthermore, apart from reducing the cost of insurance, another way that complying with the code of conduct helps is that it helps your business maintain the highest standards possible, and also helps you in building the reputation of the brand successfully. 

Upgrade your business with safety features

The major enemy of an insurance company is a risk. The higher the chances of risk in your company, the higher it is likely for your insurance rates to be expensive. If you can do anything to improve the safety of your company such as introducing safety norms and safety features, you can do so before applying for insurance coverage to reduce the cost of insurance that you will have to pay. For example, employee protection programs, personnel protection equipment, auto-brakes and auto cut off features, anti-theft features, etc. can be added. If your company is low on risk and extremely safe, you are likely to get insurance discounts helping you save a significant amount of money on insurance. 

Monitor safety as precautionary practice

Ensure that you monitor safety on your premises of both employees as well as customers to reduce rates of general liability insurance. You can also undertake safety practices such as posting prominent signboards of any risk such as wet floors, etc., to prevent the chances of any damage occurring in the first place. This can also help you get a better rate on your insurance coverage scheme. Keep the area of your business clean and away from any hazards and obstructions, and ensure that you perform maintenance of the premises in a timely manner. 

Renovate your building that meets safety

There are various building codes, laws, and regulations that business premises and commercial establishments usually have to meet. Ensure that you renovate your premises and keep it in perfect working order, and correct any structural defects or faults as they occur to ensure the safety of those working in the premises, as well as your clients. This also involves undertaking to build basic infrastructure for safety, such as well draining toilets, lights, skid-free staircases, etc. 

 

5 Best and Cheapest General Liability Insurance for small businesses

It is important to keep in mind that there should be a good combination of the features that are offered in the coverage and the cost of the plan. There is no point in going in for a plan that is very cheap but offers no protection. Here are some cheap and great insurance coverage plans for general liability insurance if you are running a small business.

 

1. The Hartford

Hartford is an extremely popular insurance provider for general liability insurance to small businesses in specific. Various types of liabilities such as property damage, medical expenses, personal injury, and bodily injury claims are covered. 

  • This company is A+ rated, indicating that it is strong financially.
  • It is ideal for those businesses that operate with a high level of risk. 

 

2. Hiscox

Hiscox is another company that provides great general liability insurance. This company has been around for a significant period of time and is known for its low cost but high coverage policies. It has a number of attractive features to offer to its clients and some of the features are: 

  • This company is A+ rated, indicating that it is strong financially.
  • It is ideal for those businesses that operate with a high level of risk.
  • It is ideal for companies that require coverage for electronic data liability, and for IT-related companies and consultants.
  • You can get the insurance cover online, and the process of paying for the insurance is fairly easy. 

 

3. Next Insurance

Next insurance Is a great company that offers general liability insurance for small businesses. Some of its features are: 

  • A coverage policy that has good features but that is affordable at the same time. 
  • This company is A+ rated, indicating that it is strong financially.
  • A policy of claim management online. 

 

4. Coverwallet

CoverWallet is an insurance company that offers general liability insurance at extremely competitive rates. Here are some of its features: 

  • One of the top-rated insurance companies currently in the United States of America.
  • Extremely user-friendly.  

 

5. Nationwide Insurance

Nationwide insurance is another company that offers general liability insurance and that offers general liability insurance at competitive rates for small businesses. Here are some of the reasons you should consider this company for your next coverage: 

  • A coverage policy that has good features but that is affordable at the same time. 
  • This company is A+ rated, indicating that it is strong financially.
  • You can get add-ons to your base policy. 
  • Can get assistance from agents online. 

 

Conclusion

It is therefore important as a small business to have general liability insurance. With the right kind of research, you can get general liability insurance at extremely competitive rates which will not leave a dent in your pocket. Compare different policies from different insurance providers to check which will suit you the best.

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