Average Cost Of General Liability Insurance For Small Businesses
What is General Liability Insurance?
General liability insurance is a type of liability insurance that provides protection for businesses against claims of bodily injury, property damage, and personal and advertising injury due to the commercial activities of the business. It is designed to protect businesses from liability arising from injuries or damages that may occur as a result of their operations. This type of insurance is often referred to as “commercial general liability” or “CGL” and can be an important part of any business’s risk management strategy.
What Does General Liability Insurance Cover?
The coverage provided by general liability insurance varies by policy, but in general, it covers third-party claims of bodily injury or property damage caused by the business’s operations, products, and services. It also covers claims of personal and advertising injury resulting from libel, slander, or false advertising. In addition, some general liability policies may provide coverage for medical expenses and legal expenses related to a covered claim. Some policies may also provide coverage for damage to rented premises caused by the business’s activities.
Average Cost of General Liability Insurance for Small Businesses
The cost of general liability insurance for small businesses can vary significantly depending on a number of factors, including the type of business, the size of the business, the number of employees, and the type of coverage purchased. Generally speaking, most small businesses can expect to pay between $500 and $1,000 per year for general liability insurance. However, this cost can vary dramatically depending on the specific needs of the business.
Factors that Impact the Cost of General Liability Insurance for Small Businesses
The cost of general liability insurance for small businesses is determined by a variety of factors, including the type of business, the size of the business, the number of employees, and the type of coverage purchased. Generally speaking, businesses in higher-risk industries such as construction, manufacturing, and technology will likely pay more for their insurance due to the increased risk of potential claims. Similarly, businesses with more employees and larger operations will also pay more for their coverage due to the increased risk of potential claims. Finally, businesses that purchase higher limits of coverage or more comprehensive coverage will also pay more for their insurance.
How to Save Money on General Liability Insurance for Small Businesses
There are a few different strategies that small businesses can employ to help save money on their general liability insurance. The first and most obvious is to shop around for the best rates. Different insurance companies will offer different rates for the same coverage, so it pays to compare quotes from multiple insurers. Additionally, businesses can look into bundling their general liability insurance with other types of insurance, such as property and workers’ compensation insurance, as this can often result in discounted rates.
Risk Management Strategies to Help Reduce the Cost of General Liability Insurance for Small Businesses
Small businesses can also employ a number of risk management strategies to help reduce the cost of their general liability insurance. These strategies include implementing safety protocols and procedures, conducting regular safety inspections, and establishing a culture of safety and responsibility among employees. Additionally, businesses should develop an incident response plan to help ensure that any potential claims are handled quickly and efficiently. By taking steps to reduce their risk of potential claims, businesses can help reduce the cost of their general liability insurance.
Conclusion
The cost of general liability insurance for small businesses can vary significantly depending on a number of factors, including the type of business, the size of the business, the number of employees, and the type of coverage purchased. To help reduce the cost of their insurance, businesses should shop around for the best rates and explore risk management strategies, such as implementing safety protocols and conducting regular safety inspections.