You own a small or medium business? You also need general liability insurance. Your clients or your customers may be hurt or any part of others property may be damaged in any way. If they claim for any injury, damage or loss, how can you get rid of it? It is a common question and you need to know the details answer on how general liability insurance works in case you face any claim from the other party’s loss caused by your business. The general liability insurance is ready to protect you from being held liable for the other party’s damages through claim submission.
So the claims may be bodily injury through slip or fall in your business area, property damage, data loss, personal injury, and advertising injury. A small business or organization is solely liable to pay the claim by the third party people like your customer, clients. However, the general liability insurance may cost you less compared to other types of car insurance. It costs far less compared to full coverage.
Types of Liability Insurance Aside from General Liability Insurance
There are various types of liability insurance. Liability insurance can be different because it meets the needs of a different business issue. These are D & O liability, employer liability, and professional liability insurance.
D & O Liability Insurance
D & O means Directors and Officers liability. This is a type of liability insurance that covers for the mistake of any work, failure to act and wrong actions of those Directors and Officers. All the company’s employees may not be held liable.
Employer Liability Insurance
Employer liability is highly known as worker’s comp injury. Every company has to keep this liability insurance as mandatory to make sure the worker is to be compensated due to any workplace injury, job related illness. It is a company’s protection plan to make workers away from any loss caused by any injury.
Professional Liability is like a contract that strongly obligates an insurance company to defend any insured person (who buy insurance from an insurance company) and to pay a judgment entered against an insured person up to a set policy amount. Doctors, lawyers, architects, engineers and many other professional can buy this type of insurance to get financial protection from lawsuits about their profession. However, the insurance company responsibly act to settle any claim against the insured out of the court.
Who Need to Get The General Liability Insurance?
When people have a small and medium business, they don’t have any idea when they are going to face lawsuits. Suddenly, they may face this issue and there is nothing to do if there is no coverage for small and medium business. So if you have a business that runs well and people gather there, you need to have general liability insurance in your business where there are physical storefronts, social media presence.
Additionally, you run your business in other’s house, offer advertisement services and sell a product with a physical presence. Aside from those issues, you need to have general liability insurance in case-
- You often have a visit to a client’s workplace for business purposes or clients also visit yours accordingly.
- You may also have access to a client’s equipment.
- You may rent third party locations for other business-related activities.
- You live in a state where the number of plaintiffs regarding general liability claim is much more.
- You run a business where there are a higher risk of the people to be injured. It may be a construction business.
Coverage of General Liability Insurance
Coverage of general liability insurance comes with mainly four categories. The function of small scale business is less compared to other types of commercial business. Typically, most of the insurance company offer these four type of coverage to the small and medium business enterprise who may buy to protect any third party claim for loss or damage caused by their business or people. So these coverages are-
- Bodily Injury
- Property Damage caused by your business operation
- Personal and adverting injury
- Product Liability
- Infringement of copyright
You have a superstore or business area where customer have a regular movement. Unfortunately, one of the customers falls down the floor and got pain in the back that may cause injury. It is called bodily injury coverage and the insurance company will cover all types of medical bill for the customer.
Property damage may cost a high amount of money. So other’s property may be damaged anyhow. In most cases, you have a renovation or construction business. You employees may work in a house but may accidentally damage other home owner’s wall. So that home owner may sue for the repair cost. You are liable to pay this cost as this loss is caused by your employees. So there is property damage insurance coverage that the insurance company will pay the repair cost.
Small business have a lot of presence on online to grow their business. They are sharing products or information on their Facebook, Twitter, Instagram, medium, Pinterest and any other social platforms. When you are sharing any information about someone that is not true, it is called Libel. So the people may sue you for slander as you are publicly sharing to millions of people and are getting benefit in exchange for false information.
You have fast food or any departmental store. You also run a good business but one day a customer says that I had a stomach problem after eating a burger from your store. It may happen as you don’t check the expiry date of your food. More importantly, the customer can claim against you if their kids get injured while playing with toys that have a fault that you didn’t notice at all. So this product liability coverage can be a good deal to have when you run any food store in your location.
Infringement of Copyright
Even if you have a large business, you may be in trouble due to an unscrupulous act like an infringement of copyright. Much small business may face any lawsuits if their employees willingly or unwillingly use any content of other business as part of jokes or meme or degradation, accusation. But other business may sue in case your presentation of that information online is completely false. So claim may be raised against you and coverage can be bought from the insurance company. The business that works with information like print media, news portal, and other business can have this type of coverage.
Average Cost of General Liability Insurance
The cost of general liability insurance is less than other types of car insurance, home insurance. When you are thinking that you need to have liability coverage, you also consider the cost. Some companies may offer you with low cost but their financial capability is also a considerable issue to you.
About 53% of small businesses normally pay between $400 to $600 yearly for paying general liability insurance, which sounds good as cheap general liability insurance small business. According to the report of Insureon, the average cost of general liability insurance stood at $741 in the year of 2017.
The rate may be a little bit high if the insurance company thinks that your business is in a risky condition. More importantly, you may get a lower rate if you have a safe mode of business (see below). The lowest amount maybe $30 which can be a good deal indeed. However, there are many factors-
- Type of business
- Size of business
- Risk factor of your business
- Number of employees in your business
- Location of your business
- Accumulative risk factors
How to Get the Cheapest General Liability Insurance Small Business
General Liability insurance may be cheap at first hand. It may be cheaper than you consider right now. There are many options that can enable you to get the cheapest general liability insurance small business. You just follow these steps to get the cheapest liability insurance which can be a good deal to save you even if you have small scale business.
There is surely a lot of an insurance company who may offer the cheapest liability insurance for your small business. You just need to study a little. Part of this study, you may search for the different insurance company and their rate. You justify this rate and compare rate like carrier rating, the financial strength of the insurance company.
The deductible is another issue to consider getting cheap liability insurance indeed. To make sure the cheapest liability insurance small business, you need to put importance on a high deductible that can ensure an affordable rate for liability insurance.
Include More Policy To Your Existing One
Insurance is financial security to protect any type of disaster. You may have a car, home, business that needs to be insured to be secured financially. General liability insurance includes bodily injury, personal injury, and property damage and information infringement. You may opt for all coverage like those because an insurance company will offer an exciting discount when you stand under an umbrella. Umbrella policy really works for the people who want to get the cheapest liability insurance small business.
A business owner’s policy (BOP) is one of the great ways to get the common discounted insurance bundle for small scale business. You may have general liability insurance, commercial liability property insurance which are really important to cover. If you cover both under one insurance company, you are going to get exciting discount offers.
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.
Some Steps to Get the Cheapest General Liability Insurance Small Business
It is common to believe that no insurance company is willing to go with you if there is a business risk. The insurance company will also offer you insurance coverage, but the rate should be sky-high. So you may work for the area where there are potential risk factors and eliminate those risks to get cheapest liability insurance small business. More importantly, discounts are available and easy to get if your business is so safe. However, there are areas where you can improve if you have a small business.
Keep your business in compliance with a code of conduct
Every business no matter whether small or medium has a code of conduct, which means having a good practice of business lawfully. It means there is local law and you have to follow it. If you follow the community rules and regulation, pay taxes on time, comply with the law, your business will gain reputation from the side of government and folks of the community.
More importantly, you may achieve any credentials and certificates for running a good business. Therefore, more reputation explains fewer business risks. However, the insurance company will go for that business organization which is known as a good business from the side of government and the general, they will offer you the cheapest rate of general liability insurance.
Upgrade your business with safety features
Insurance will be high when you are running a risky business. For example, you have a food store where there are no safety features. Normally food store is a sensitive store where any burglar or any miscreants may enter and mix poison with foods to destroy the reputation of the business. However, if you have strong safety features like installing security cameras and alarms, it means you are more careful to build your business in a stronger and sustainable way. This can save you from any unwanted accident in your business.
The insurance company is surely going with you when your business is safe from any troublemakers. They will offer you some exciting perks and discounts to continue and grow your business in the long run.
Monitor safety as precautionary practice
You have a business in an apartment where many customers visit every day for their purposes. You need to make sure how safe the apartment where you are running your business. A customer may slip due to spills on the floor and he may suffer from back pain, shoulder injury or neck injury which can cost you a huge amount in case they claim against you. Not spills to be cleaned but there may also be a blockage on the walkways, the walkways may be full of clutter which may cause to the serious accident to your customer.
Part of safety, you need to make your business area safe and clean so that any unexpected accident does not happen. However, most insurance companies may inspect the business area to make sure it is safe. If there is much safety in the business area, the insurance company will think it is also safe to invest with you. Additionally, they will offer exciting discounts that can be a good deal indeed.
Renovate your building that meets safety
The building where you are running your business can be risky. It is also risky for the insurance company if there is a possibility of an accident due to your risky building. The insurance company will visit your business area and make a report the current status of safety. However, they will offer a cheaper rate of insurance for safety and security in your business area. Part of the renovation work, you may install handrails on the stairs, add enough lighting system to the dark areas, remove something that poses risk.
5 Best and Cheapest General Liability Insurance Small Business
Now that you need to get coverage for your business. You are looking for the best insurance company to get the cheapest liability insurance coverage small business. Here are some insurance company and they have a reputation and a good track record in providing best and affordable coverage for the small business.
1. The Hartford
Hartford is one of the most trusted and popular insurance companies to provide general liability insurance for small businesses. The coverages that this insurance company offers are property damage, bodily injury, personal injury, and medical payment claims. This can be one of the best-rated insurance company if you have a small business.
- A+ rated insurance company (Indicates strong financial capability)
- Good for high risky business.
Do you have a small business? You don’t worry because Hixcox can help you get the cheapest car insurance and this insurance has decades of experience in providing coverage for liability insurance. Some features are here-
- A-rated insurance company.
- Electronic data liability coverage.
- Good for IT consultants.
- Operate their business anywhere in the world.
- Online purchase easy.
- Upfront pay for a discount.
3. Next Insurance
For the small business, Next insurance is another name that can help a small business grow. When you are thinking to get insurance coverage for your small business, this one can be worth lifting your business to greater heights. Here are some features-
- A+ rated insurance company
- Online claim management.
- Affordable coverage
CoverWallet provides the protection of your business as it is one of the good insurance company. It can be so easy to get coverage from this insurance company. You may get a better and cheaper rate of insurance to make sure you are not spending a high amount of money. Some features are-
- Top-rated insurance company
- User-friendly tool.
- Agent contacts you for getting insurance.
5. Nationwide Insurance
Nationwide insurance can be a good deal for liability insurance. There are good track records of this insurance company. Nationwide always put importance on liability insurance for small scale business. Why you go this insurance company are-
- A+ rated insurance company
- Has a good track record for better customer satisfaction
- Add-ons to their coverage
- Easy assistance from agent to get online
Insurance is a really important issue in our life. It is also more important In terms of business where there is much more risk which can turn a businessman’s’ life into a disaster. But insurance won’t let that happen because the insurance company will cover the loss faced by a small businessman. So liability insurance is really important for the small business and the people having a small business won’t have to face any danger for business loss due to any claim by the third party.