Looking forward to going for the best general liability insurance for your small business? Know what it aims for, its importance, and some of the best options for your business venture.
Running a business requires one to make ample efforts and constant progress. Businesses should take care of several requirements such as finance, profit margin, etc. Most of them need a steady supply of raw materials, inventory, equipment, expertise, etc to sustain.
Fighting the market competition and customer demands is equally important. And with all that, the game doesn’t end here. There are certain risks that come with it – property damages, bodily injuries, and loss in advertisements.
However, various insurance policies might help in covering the expenses of all these damages. One of the most prominent ones is best general liability insurance policies.
These insurance policies can take care of all these damages, provide protection against lawsuits, and find an easy settlement. But, is it really important for a small business to have its insurance covered? And if yes, then what are some genuine insurance options?
Get yourself hooked and let’s find out all of that in this article. This article will help you navigate through some best general liability insurance policies, the risks that are covered, and the average insurance cost.
What is general liability insurance and why is it required?
General liability insurance is a policy that protects a business from various damages that occur to people and properties. It might even help in protecting the venture from lawsuits, anti-social activities, claims, etc. As an enterprise, every business must protect its assets from risks. The best way to do that is to back it up with good liability management.
A business should have its best general liability insurance covered because of the following reasons:
1. Protection during risks:
Liability insurance policies provide protection to small businesses during unfortunate situations.
2. Damage control:
It meets the expenses of various bodily injuries, property damages, accidents, etc.
Business liability insurance also helps in making legal settlements due to claims and lawsuits.
What risks are covered in general liability insurance?
The risks that are covered by general liability insurance for a small business are:
- All types of bodily injuries, rental property damages, and third-party damages.
- All types of copyright claims, fake notices, and libel.
- All types of evictions, lawsuits, etc.
- All types of legal settlements.
However, there are several risks that are associated with a small business but a general liability insurance policy does not cover all of them. For example, compensation insurance or medical costs of the workers do not come under this category.
It is also important to know that this is added with additional business property or income insurance policies to cover more risks. Adding other insurance policies might also help in saving some extra money in case of a risk.
What are some of the best general liability insurance policies for small businesses?
In today’s time, there are several best general liability insurance policies available in the market. Finding out the one that suits the venture is the real deal. Here are some of the genuine insurance policies for small businesses:
1. Allianz Insurance:
The best part about having this insurance policy is that it has the highest financial strength rating. The complaints from the customers are very low as well. The company provides its services and policies to all industries.
It even helps businesses to tackle terrorism and aggressive surroundings as well. The navigation might be a bit tricky for some businesses and the claims are not very elaborate on the official website.
Allianz focuses mainly on the sustainability of the business and provides climate actions. According to the Dow Jones Sustainability Index, it is considered a sustainable insurer in 2022.
2. Next Insurance:
The best part about having liability insurance covered by Next Insurance is the low liability insurance cost. A business that has low financial backup can prefer the liability policies for Next Insurance. The Insurance policy starts at USD 11 per month including the product liability coverage.
A downside of insurance is that some businesses are the ones that work traditionally. Since the claim process is digital and there is no paperwork, some businesses can find it a little inconvenient.
3. Acuity Insurance:
Acuity Insurance covers a wide range of industries including hotels, restaurants, auto repair shops, etc. It has been in the insurance field since 1925 and has brought smiles to many customers. It also provides consultation and training for on-site loss control.
With all of that, Acuity provides its customers with information regarding construction and retail too. But, the insurance services of Acuity Insurance don’t cover all the places and in some states, the prices are higher than usual.
4. Hartford Insurance:
Hartford Insurance is the highest-rated general insurance policy. Hartford Insurance has been providing insurance for 200 years which makes it a whale in this industry. Hartford makes it very easy for small businesses to get coverage against damages. In many cases, the coverage can be dispatched within 24 hours of applying for it.
In addition, it also provides additional insurance policies for both personal and business purposes. With all that, the insurance policy doesn’t provide its services in Alaska, New Jersey, and Hawaii. The customer ratings of the general liability insurance of Hartford have also been mixed as well.
5. Clear Blue Insurance:
Clear Blue Insurance has similar ratings to that of Allianz. The complaint level of the insurance it provides to the customers is also very less. However, it doesn’t provide insurance directly to the customers.
It provides insurance to businesses through some partner agencies. In addition to providing best general liability insurance, it also covers insurance of employment practices and commercial properties.
6. State Farm:
State Farm Insurance offers a variety of best general liability insurance policies to businesses. Professional liability insurance can also be added to the business owner’s policy. The agents of state farm insurance are spread across all 50 states of the United States.
However, the online capability of this insurance policy is quite questionable and the businesses do not have the access to an online quote as well.
Among other insurance policies, Thimble provides general liability insurance on a monthly basis or for specific events. Businesses that want to cover contractual requirements can look for Thimble. The best part is that the insurance policy starts from USD 17 per month.
Businesses can also get a quote and purchase insurance online within minutes. However, Thimble doesn’t provide commercial auto insurance to businesses. Also, customer support is not available online which makes it slightly inconvenient for users.
What elements influence the general liability insurance cost for small businesses?
The following five elements have the most impact on best general liability insurance premiums:
1. Size of the building:
Larger structures increase the likelihood of accidents occurring. Thus, you might pay more if your business is in a bigger building with higher foot traffic.
Businesses that fall in high-crime zones may have to pay more for liability insurance.
3. Payroll size and annual revenue:
The greater your expenses i.e. running costs, the higher will be your liability insurance premiums.
4. Claims background:
Your premiums can increase if you’ve made general liability claims in the past.
5. Policy Concerns:
Coverage limitations, deductibles, and other policy factors affect your company insurance cost.
What is the average general liability insurance cost for small business?
General liability insurance cost for small business vary depending on the business operations and policy limitations, among other considerations. According to Insureon – An insurance marketplace, the median monthly rate for general liability insurance is $42 monthly for small businesses.
The cost of best general liability insurance can vary based on what your company performs, where you are located, how many employees you have and lastly whether you have had prior claims. Next, a yoga teacher pays a typical monthly premium of $15, whereas general liability insurance for contractors is $88 per month.
Cost of Business Interruption Insurance
If your firm must close temporarily due to a covered loss, business interruption insurance helps to replace your income losses and pay operating expenditures during that period. This includes revenue lost, mortgage, lease or rent payments, loan payments, taxes, wages, relocation fees, and training costs. The average expense according to Insureon for business interruption insurance, is between $40 and $130 per month, or $500 and $1500 per year.
Insurance policies can not only cover the expenses in case of risks but can also prevent fraudulent claims and lawsuits and make settlements. So, a responsible business should have the best general liability insurance for better liability management and the safety of the business.
In addition to that, a business can have professional liability insurance, commercial umbrella insurance, and workers’ compensation fees as well. This will help in covering other additional costs due to professional mistakes, medical issues of the workers, accidents, etc. The type of business one has, the business size, and its location are the major deciding factors while availing of a liability insurance policy.