General liability insurance cost

A common question among new small business owners is, “How much is liability insurance?” Considering the high cost of starting a business, it’s no surprise that you’d want to keep your general liability insurance costs low but not at the expense of adequate coverage.

With this in mind, it’s important for you to learn how various qualities of your business might affect your exposure and premium.

General liability insurance cost factors

The basic factors that influence the cost of general liability insurance are:

  • Your exposure - A small business that manufactures, delivers and installs equipment is exposed to more risk than a business that only delivers equipment.
  • Your location - Rates vary based on your state and where you conduct business. Highly populated areas, and locations with increased claims will generally pay more.
  • Number of employees - A sole proprietor who doesn’t have any employees has a reduced risk compared to a small business owner with employees.

Find the cheapest liability insurance for your business

There are many ways to save on your general liability insurance costs. Some of these include:

Adjusting your coverage limits and deductibles

Lowering your aggregate limits from $2 million to $1 million, for example, is one way to lower your premium. You may also increase your deductible amounts as well. It’s important to understand, that by doing this you’re lowering your overall coverage, and paying more out of pocket at the time of a covered loss. Make sure you’re comfortable with your selected amounts prior to purchasing a policy.

Implementing safety standards in the workplace

Always keep safety in mind. Strong safety practices can help minimize your risk while on the job and keep your employees and customers safe. For example, a painting contractor could maintain a clutter-free workspace to reduce the risk of someone tripping over supplies left on the floor. Reducing your exposure to possible claims could help keep your premiums low.

Discounts

Discounts are an easy way to help you get the cheapest liability insurance for your business. The number and dollar amounts of discounts for which you’re eligible usually depends on your carrier, business class, and location. Carriers could offer a discount for paying in full, or having an existing policy with them. Be sure to ask for all the discounts your eligible for while you’re getting your quote.

Find out if your business is eligible for general liability insurance. A licensed agent can provide you with a customized quote to match your specific business needs

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