General liability insurance is the foundation of your small business insurance plan. You can find a good policy by following these steps.
Gather Your Information
You’ll need to have basic information and documentation, including:
- Your contact information.
- Details on what your business does.
- The number of years you’ve been in business.
- Number of employees.
- Payroll documentation.
- Estimated business revenue for the upcoming year.
- The number of years you have owned the business.
- Whether you own or rent the building where your business is located.
Consider a Business Owners Policy
A general liability insurance policy is foundational coverage for your small business, but it won’t cover problems like theft, vandalism, fire, severe weather and lost income. If you want coverage for these types of issues, you’re going to need to buy additional coverage.
A good way to do this is by purchasing a business owners policy (BOP), which bundles general liability insurance with commercial property insurance and business interruption insurance. It’s typically cheaper to buy a BOP than to buy all three policies as standalone policies.
Pro Tip
A BOP includes general liability insurance and other key small business insurance coverage types.
Compare General Liability Insurance Quotes
Small business insurance companies don’t price their policies the same. The best way to find a good price on a general liability insurance policy or a BOP is to compare business insurance quotes from multiple companies. You can get free business insurance quotes online or by speaking with an independent insurance agent.
Is General Liability Insurance Required by Law?
Business liability insurance isn’t required by law, but if you fail to buy coverage, you’re leaving your business vulnerable to a wide variety of costs that could potentially bankrupt your business.
FAQs
General Liability Insurance
General liability insurance helps protect your business from claims that it caused bodily injury or property damage to someone else. For example, if a customer slips in your store, this coverage can help pay for their medical expenses.
Is General Liability worth it? ›
Your GLI policy can help pay for your legal fees and settlement costs. Without general liability insurance coverage, your business would have to pay out of pocket for costly claims that could come up during normal business operations.
How to select business insurance? ›
Four steps to buy business insurance
- Assess your risks. Think about what kind of accidents, natural disasters, or lawsuits could damage your business. ...
- Find a reputable licensed agent. Commercial insurance agents can help you find policies that match your business needs. ...
- Shop around. ...
- Re-assess every year.
General liability is recommended for all small businesses
Almost every small business needs general liability insurance. This liability policy provides protection against common customer or client accidents, including bodily injuries, property damage, and personal injuries.
How much is a $2 million dollar insurance policy for a business? ›
How much is a 2-million dollar insurance policy for a business? On average, an insurance policy that offers coverage for up to $2 million can cost about $30 a month in premiums.
Can you self insure general liability? ›
Some large businesses may choose to self-insure to save money and control costs for their commercial property, auto and general liability coverages. When a business chooses this route, they don't buy a plan from an insurance company.
What does general liability typically cover? ›
General liability insurance policies typically cover you and your company for claims involving bodily injuries and property damage resulting from your products, services or operations. It may also cover you if you are held liable for damages to your landlord's property.
How much is $1 million commercial insurance? ›
On average, a $1 million liability insurance policy costs $69 a month, or $824 a year, for our small business owners. Keep in mind that every business is different, so the $1 million liability insurance cost will vary.
Is business insurance tax deductible? ›
So, it's no surprise that many entrepreneurs find themselves wondering if their business insurance tax deductible. The answer is generally yes. The Internal Revenue Service views some insurance premiums as a cost of doing business and may accept them as tax deductions.
What should be included in business insurance? ›
Combined commercial insurance—Also sometimes known as a business owner's policy, combined commercial insurance is a tailored package that can include a variety of coverages—for example, property, liability, business interruption and supplementary insurance for “goods in transit” (products that are being shipped).
Carefully consider the risks your small businesses may face, including natural disasters, accidents, or potential lawsuits. In many cases, these will depend on the nature of your small business. Cover your legal bases. Determine what types of insurance are legally required for your business.
Is small business insurance the same as commercial insurance? ›
Small business insurance, sometimes called commercial insurance, helps protect a business's assets, property, and income. A business owner's policy (BOP) is the most common insurance product for small businesses, according to the Insurance Information Institute (III).
Which type of business insurance is meant to cover the costs? ›
Professional liability insurance helps cover costs related to claims that your business made errors in the services you've provided. For example, if you make a clerical error and it causes a client to lose thousands of dollars, professional liability insurance can help cover the costs if the client makes a claim.
Is insurance more expensive for business use? ›
Typically, commercial auto insurance will cost more than personal auto insurance because it protects you against more expensive risks and provides a higher level of coverage.
