Small businesses see a lot of general liability risks despite the fact that they may be smaller than large enterprises. General liability refers to common claims involving third parties who are injured, or their property is damaged due to the business’ everyday operations.
Understanding what influences your general liability insurance rates can help you lower them. On average, general liability on its own costs about $53 a month. This is relatively affordable for insurance, but it often comes in bundles with other important policies.
Factors That Influence General Liability Rates
Different states and areas within those states charge differently for general liability insurance. This is due to general costs, medical costs in the area, population and the number of claims in that usually occur in the area.
Size Of The Business
Larger businesses tend to pay more for general liability insurance. This is because the more locations, clients and employees means higher risks when it comes to accidents and lawsuits.
The industry of the business can also have an effect on general liability insurance costs. Certain industries are at higher risk of liability claims. Businesses that host guests, manufactures equipment and conducts other high-risk activities tend to pay more for general liability insurance.
As with other types of insurance, general liability premiums vary depending on the amount of coverage. Most of these policies come in millions starting at $1 million in coverage for claims per policy term, but every business is different. Your business may need different liability limits than the business across from you.
A lower deductible generally means higher insurance premiums. You can raise your general liability insurance’s deductible in exchange for lower monthly premiums, but this also means paying more out of pocket after a claim before receiving compensation.
Bundling And Discounts
You can often save money by bundling general liability with other crucial coverages. A business owners policy combines general liability and property damage insurance into one comprehensive policy for small businesses. This policy can also be adjusted to add coverages such as professional liability, directors and officers insurance, and more.
Costs for general liability insurance vary widely, especially between different insurers. Compare quotes with multiple insurers and ask about qualifying discounts to save money on your general liability insurance. Not all policies are created equal, so make sure to find the right coverage at the right price.
Also Read: What Does General Liability Insurance Not Cover?
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