Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
General Liability Insurance Cost
General Liability Insurance Cost. General liability insurance is the most common and important type of business insurance policy. Also known as Business Liability, Public Liability, or Commercial General Liability, this insurance cover is an essential part of insurance portfolio for your business, whether you work out of your home, from an office, or in the field. It helps protect your business or professional practice against bodily injury claims or property damage lawsuits from outside or third-parties (customers) as a result of the operations of your business.
You need to cover various risks and potential incidents, such as accidents, physical injuries, theft, equipment damage, and liability claims. Many general liability policies can also cover claims of personal injury like slander or libel and advertising injury claims of misrepresenting your products or services. Whether an accident, or physical injury is your fault or not, or the claim or accusation is true or meritless, this coverage will protect your company against covered claims by paying costs of defense and any damages up to the policy limit you chose. Find out about general liability insurance cost.
What does general liability insurance cost? Find out and protect your business from lawsuits and legal liability. Get a fast quote and your certificate of insurance now.
How Much Does General Liability Insurance Cost?
General liability insurance cost is determined by the amount of exposure to risk that the insurer accepts. There are many risk exposures that affect the policy price and every business is unique. The size and type of the company, the products and services sold, your previous claims history & loss experience, where your operation is located, and the risks employees face all contribute to general liability insurance rates. Insurers will typically be most concerned about the following:
- Your business type - the industry one is working in, such as service, hospitality, contractors, retail, or professional.
- Your location
- Years in business
- Number of customers
- The number of workers
- Annual revenue
- History of claims
What Makes Up My Commercial General Liability Insurance Premium?
Insurance premium for a commercial general liability policy can vary significantly based upon your profile and your specific business needs. For instance, general liability insurance cost for a small business which manufactures, delivers, and sets up equipment will typically have a higher exposure to risk than a business that just delivers the equipment. However, the annual premium cost for small businesses, regardless of policy limits, can be as low as $27 per month. Coverage is normally capped at a specific dollar-amount for your policy period. That is why it is important that you fully assess your risk exposure and buy a coverage that will best protect you.
How To Find The Lowest Cost Policy
There are several ways to package policies, obtain discounts, and lower your general liability insurance cost costs. For instance, small business owners can often choose a combined policy that offers all the basic insurance cover a small business needs. Also known as a BOP or business owner's policy, this type of packaged coverage can make the cost of insurance very affordable for small businesses. However, for most consumers, general liability insurance is a confusing and sometimes intimidating product that must be understood so as to safely operate your business. If you are unsure of your policy options and are seeking for advice or business insurance quotes, contact a professional insurance agent who specializes in commercial coverage.
Do You Need Business Owners Insurance (BOP)?
An experienced and knowledgeable commercial insurance broker has a unique capability to provide you the information you require to make an informed decision with regards to transferring your day to day risks to a highly-rated insurance company. They can help you critically assess which of the many commercial coverage types are appropriate for your company, and can find out all available discounts on your behalf. They can give quotes for your business from several insurance carriers, and can assist you with every aspect of business coverage, from product liability to workers compensation to commercial vehicle insurance - all out of one office. That means you do not need to go to various insurance companies to have all of your needs met.
If you are starting a business, it is a good practice to buy your general liability insurance cost policy before you open. If you already have a business liability coverage, you should have it reviewed periodically to ensure it's up to date. And as your business expands, it would be a wise idea to increase the limits of your coverage and reduce your exposure to claims. Make sure you have adequate general liability coverage to protect your company investment so you will be there to serve your clients tomorrow.
Small Business Economic Data & Insurance Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.
Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.
Read up on economic statistics and insurance information that relates to small business owners in the United States.
Small Business Economic Data In The United States
Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:
- In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
- Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
- Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
- Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
- In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
- There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
- Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
- Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:
- Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
- Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
- Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Business General Liability
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Comprehensive General Liability
- Directors and Officers Liability
- Employers Liability
- Employment Practices Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Professional Liability
- Small Business
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners thnk about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc.? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.