Liability Insurance Quotes
Liability Insurance Quotes. If you are a small business owner looking to insure your new enterprise, you first need to understand that there are a number of types of insurance out there, each serving a different purpose.
Before making a purchase or even looking up liability insurance quotes, make sure you understand which kind you want - and which kind you need.
Liability insurance quotes protects your company from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
How Much Does Liability Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 Liability Insurance policy for small businesses ranges from $27 to $59 per month based on location, size, payroll, sales and experience.
Types Of Liability Insurance
Listed here are some of the major types of commercial policies you can get liability insurance quotes for:
General Liability Insurance - Liability insurance is an absolute necessity. It protects you in the case that you or any employees you may have somehow harm a third party, whether by bodily injury or property damage. This sort of insurance provides coverage of both damages and defense costs, whether or not you or your employees are found guilty.
Property Insurance - property insurance protects all property related to your business, including product inventory, office supplies, technology, and so on, in addition to the physical building or property you run your business out of. Even if you rent space and do not own the building, this insurance will still protect your equipment and supplies in the case of theft, vandalism, or damage from disasters such as fires.
Commercial Auto Insurance - While property insurance protects all materials within the business location itself, commercial auto insurance protects the company's vehicles. If you do not own any company vehicles, you probably do not need this coverage, but if you do then it offers important protection against damage and injury resulting from collisions. Keep in mind that this is not a replacement for insurance for your own personal or family car that you drive outside of work. Getting liability insurance quotes can help you find the best price.
Business Owner's Policy - A kind of business insurance package deal, a business owner's policy aims to provide you with every type of insurance you want or need with a single purchase. They usually include a combination of liability insurance, property insurance, commercial auto insurance, and crime insurance. If you can find a policy that matches your needs, you will usually save money compared with buying all these insurance types individually.
Worker's Compensation - If an employee suffers accidental injury while performing work for your business, they may be entitled to seek damages. A single accidental incident can be enough to sink a small business. That is why it can be very important to have worker's compensation insurance. When an employee is injured and unable to work, this insurance grants them wage replacement and medical coverage, but only if they relinquish the right to sue you. This is usually enough of an incentive to prevent a legal battle that may be costly and inconvenient for both sides. In most states, workers comp is legally required for any non-owner or partner employees.
Data Breach - Data breach insurance applies only to companies that store private information or data as part of their operations. If you need to collect personal information or financial records from your clients or employees for any reason, you may be liable for damages in the event that an unauthorized party gains access to this data. In the digital age, there is always a risk that any sensitive information stored electronically can be breached. In that event, data breach insurance will help cover the damages.
Errors and Omissions Insurance - In the event that you are accused of negligence or failing to render professional services, errors and omissions service will provide defense and damages. There is a distinction between this kind of protection and that offered by general liability insurance. Errors and omissions coverage is also known as professional liability. Get liability insurance quotes to see how much E & O insurance costs.
What About Life Insurance?
Not technically a kind of business insurance, life insurance does warrant a mention when discussing insurance policies for small business owners. If you are supporting a family while launching a new enterprise, chances are you are already taking a financial risk. In the worst-case scenario that something were to happen to you, all the money that you and your loved ones had tied up in the business would be lost. It is always an uncomfortable feeling to make plans for the event of your own death, but if your family has supported you in launching your own business, you should do all you can to protect them in return.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
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.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
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.
- Small Business
- Business General Liability
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Commercial Auto
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employers Liability
- Employment Practices Liability
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Professional Liability
- Workers Compensation Insurance
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 think 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.