Short-Term General Liability Insurance Policy Information
Short-Term General Liability Insurance. You've worked hard to build your business. You offer premium-quality products and services and strive to provide your customers with the most reliable results possible.
However, despite all of your efforts to deliver outstanding service and ensure the complete satisfaction of the people you serve, you never know when something unexpected is going to occur; a client could slip and fall on your property or an employee could accidentally damage a customer's property, for example.
That's why you need liability insurance, a policy that's designed to protect your business from unexpected mishaps. And you'll need to show proof of it to work certain jobs.
However, it can be difficult to determine which type of liability coverage you need: long-term or short-term general liability insurance.
What's the difference between short-term and long-term commercial liability coverage? Which type do you need? Read on to find the answers to these questions and more.
Find short-term general liability insurance for when you need it - an hour, day, month or longer. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked short-term general liability insurance questions:
- How Much Does Short-Term General Liability Insurance Cost?
- What Is Short-Term General Liability Insurance?
- Why Buy Short-Term Liability Coverage?
- Is Short-Term General Liability Insurance Right For You?
- What Types Of Businesses Can Get Short-Term General Liability Coverage?
How Much Does Short-Term General Liability Insurance Cost?
The average price for the required $1,000,000/$2,000,000 Short-Term General Liability policy for small businesses ranges from $5 to $27 based on what you do, where you work, how long you need coverage, and the size of your team.
What Is Short-Term General Liability Insurance?
Commercial liability insurance is specifically designed to protect business owners from third-party property damage and personal injuries.
For instance, if a customer or vendor were to trip over a wire or slip on a puddle on your commercial property and suffer an injury, this type of coverage would cover the cost of any necessary medical care that they might require. Or, if an employee's mistake damaged a customer's property, general liability insurance would help to pay for any repairs. This insurance policy also assists with legal expenses that you may be responsible for if a third-party were to file a lawsuit against you.
There are two forms of commercial general liability coverage: long-term and short-term. As the name suggests, a long-term policy provides coverage for a full year.
While a short-term general liability insurance policy offers liability coverage for a limited amount of time; an hour, day or month.
Why Buy Short-Term Liability Coverage?
There are a few reasons why short-term general liability insurance may be a better option than a long-term policy; especially contractors. For instance, as a contractor, you'll likely need contractors insurance just to get your foot in the door and land a job - but what if you're only working for a few hours or days at a time?
Let's say you're a commercial power washer who only works during the summer months. Instead of purchasing a long-term policy, which usually covers an entire year, a short-term policy might be a better option.
Why opt for a short-term liability policy over long-term? Firstly, you'll likely pay a lot less, but should anything go wrong, you'll have the coverage you need. The same would be true if you're a wedding planner that really only works during peak wedding season, or you're a snowplow operator etc...
Is Short-Term General Liability Insurance Right For You?
While it's true that short-term general liability insurance may be a better option for some contractors, it might be the best option for everyone.
The primary benefit of a short-term policy is that you don't have to commit to a long-term policy when you only need coverage for a short amount of time, which could save you a substantial amount of money. However, it's important to keep in mind that you will have to purchase a new policy every time your short-term coverage expires, which can be complicated and time-consuming.
Additionally, while it could potentially save money, that isn't always the case. In fact, if you have to purchase several policies over the course of a year, short-term coverage may actually end up costing you more than a long-term policy. Depending on the specifics of your policy, the industry you work in, and your provider, the rates may be higher for a short-term policy.
What Types Of Businesses Can Get Short-Term General Liability Coverage?
So one of the leading providers of short-term liability insurance is Thimble. Here is an example of industries that can purchase short-term general liability by the hour, day, month or longer:
- Hair Stylists
- Nail Artists
- Salon Owners
- Spa Owners
Cleaners & Janitors Insurance
- Car / Boat / Vehicle Washing or Detailing
- Carpet Cleaners
- Janitorial Services
- Office Cleaners
- Pressure Washers
- Window Cleaners
Consultant & Freelancer Insurance
- AV Installation
- Business Consultants
- Car AV Installation
- Classroom Instruction
- Computer Programming
- Computer Repair
- Creative Directors
- Financial Consultants
- Graphic Designers
- House Sitting
- IT Consultants
- Interior Decorating
- Marketing Consultants
- Personal Shoppers
- Photography & Videography (No Drones)
- Sound Recordists
- Web Developers
Contractors & Handyman Insurance
- AV Installation
- Alarm Systems Installation & Repair
- Carpentry - Interior
- Carpet Cleaners
- Closet Installation
- Debris Removal
- Deck Building
- Fence Building
- Finish Carpentry
- Finishing Contractors
- Furniture Assembly (No Cribs or Bunk Beds)
- Furniture Installation - Office
- Furniture Refinishing
- Gutter Cleaning
- Interior Painting
- Invisible Fence Installation
- Office Furniture Installation
- Office Machine Installation and Repair
- Painting & Siding
- Piano Tuning
- Small Contractors (including Finishing Contractors)
- Smart Home Installation
- Surveillance System Installation & Maintenance
- Swimming Pool Servicing
- Window Decorating
Events & Entertainment Insurance
- Balloon Artists
- Belly Dancers
- Canoe & Kayak Guides
- Caricature Artists
- Celebrity Look-a-Likes
- Event Staff (Planners & Promoters as Individuals)
- Face Painters
- Fishing Guides
- Float Trip Guides
- Food / Catering (No Bartending)
- Hiking Guides
- Individual Event Participants (Not the Event Itself)
- Musical Conductors
- Nature and Wildlife Guides
- Stand Up Paddleboard (SUP) Guides
- Street Performers
- Tour Guides
- Aerobics Instructors
- Dance Instructors
- Fitness Instructors
- Golf Instructors
- Personal Trainers
- Spin Instructors
- Swim Instructors
- Tai Chi Instructors
- Yoga Instructors
- Lawn & Yard Maintenance
- Pesticide Application (Landscapers Only)
- Trimming or Pruning Trees Exclusively at Ground Level (No Removals)
- Pet Grooming
- Pet Sitting
- Pet Training
- Pet Walking
Short-Term General Liability Insurance - The Bottom Line
While general liability coverage is needed by most businesses, whether you need a short-term or long-term policy depends on a number of factors. Mainly how long you need the insurance coverage for, and what type of industry your business is in.
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.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.