General Liability Insurance is crucial for small businesses as it provides financial protection against common risks and liabilities. This type of insurance is designed to cover third-party claims for bodily injury, property damage, and other related liabilities. Here’s an overview of General Liability Insurance for small businesses:

What Is Small Business Liability Insurance?

Small business liability insuranceLiability insurance for small businesses helps cover claims of:

  • Bodily injuries
  • Property damage
  • Financial loss due to an error or omission

Every small business faces unique risks. We’re here to help protect you from them with small business insurance coverage that can help you stay focused on running a successful operation.

To learn more about your small business insurance options, get a quote.

What Does Liability Insurance Coverage for Small Businesses Include?

Small business liability insurance includes several different types of coverage that you should think about for your risk management plan. Be aware that small business insurance requirements vary by state, such as carrying workers’ compensation insurance or commercial auto insurance. You may need a certificate of insurance to help prove that your business has the necessary coverage.

To learn more about the different types of business insurance, get a quote today.

General Liability Insurance

General liability insurance helps cover claims that your business caused bodily injuries or damage to another person’s property. It can also help cover tortfeasor claims such as libel and slander. This coverage can help pay for legal fees and claims that can come up during normal business operations.

Business Auto Insurance

Business auto insurance, or commercial auto insurance, helps protect you and your employees on the road if you drive a company-owned vehicle for business. It can help cover bodily injury and property damage claims from an accident that your business is involved in. 

Professional Liability Insurance

Professional liability insurance helps protect your business from liability claims that it made a mistake in the professional services given. It’s also known as errors and omissions insurance. This professional liability for small businesses coverage can help pay your:

  • Defense costs
  • Attorney fees
  • Judgments
  • Settlements

Workers’ Compensation Insurance

Workers’ compensation insurance gives benefits to your employees if they get a work-related injury or illness. It can help cover their:

  • Medical expenses
  • Ongoing care costs
  • Disability benefits
  • Lost wages

Employers in most states are required by law to have workers’ compensation insurance.

Commercial Umbrella Insurance

Commercial umbrella insurance extends the limits of some of your liability insurance policies. So, if there’s an expensive claim that exceeds your policy limit, commercial umbrella coverage can help pay the difference if it’s a covered cause of loss.

You can typically buy a $1 million or $2 million umbrella policy for a few hundred dollars. Making this investment now can be worth it if you’re faced with thousands of dollars later from a claim.

Additional Liability Insurance Coverage for Small Businesses

Liability insurance coverage for small businessTo help protect your business from more of the risks you face, consider adding these types of business liability insurance coverage:

  • Business Owner’s Policy (BOP)
  • Business income insurance
  • Business property insurance
  • Business flood insurance
  • Bonds for small businesses

How Much Does Liability Small Business Insurance Cost?

Insurance companies look at several factors when determining the cost of small business liability insurance. This can include your:

  • Policy details, like coverage limits and deductibles
  • Business industry
  • Location
  • Employee size

Our customers pay an average of $805 a year, or about $67 a month, for general liability insurance.1 But because every small business is unique, your actual cost may be different. The insurance cost for a startup business may be different from an LLC’s insurance cost. The best way to find out your business’ cost is to get an insurance quote.

Why Do You Need Liability Insurance for Small Businesses?

general liability insurance for small businessIf you don’t have liability insurance, you’ll have to pay for claims or lawsuits out of pocket. This can include:

  • Fines
  • Criminal penalties
  • Lawsuits if your business doesn’t meet state requirements

You can learn more about liability insurance for a small business by asking an insurance agent or professional these seven questions: 

When you’re ready to get a liability insurance quote for your small business, you can work with an independent insurance agency or an insurance company like ours. Our specialists are here to help you. Whether you’re looking to discuss the cost of commercial general liability insurance or need help with a claim, we’ve got your back.

It’s essential for small businesses to carefully assess their coverage needs, choose appropriate coverage limits, and work with insurance professionals to secure the right General Liability Insurance policy. Regular reviews and adjustments based on changes in business operations contribute to sustained risk management.

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