Whether you sell products or services, run an online store or own a restaurant, small business liability insurance protects your company against financial risks. Some of the common policies include commercial real estate, general liability and worker’s compensation.
General Liability Insurance
General liability insurance (GL) helps protect your small business from claims that it caused bodily injury or property damage to a third party. This is a risk that can cost you thousands of dollars. In addition to paying for damages, a liability claim may require costly legal fees to defend your business. This can quickly deplete the cash reserves of your business and even force you to close.
Liability claims may arise from a variety of incidents. The most common are injuries or property damage caused by normal business operations. If a client trips and falls on equipment or materials at your business, for example, you may be held responsible to pay their medical bills. If a client’s computer is damaged when you demonstrate software on their laptop, your business could be held responsible for the repair costs.
You can get general liability insurance at a reasonable price for your small business. Our licensed agents can assist you in finding policies that suit your business’s unique needs. To save money on premiums, many small businesses bundle their coverage. Business owner’s policies, or BOPs, combine commercial property and general liabilities into one policy for a lower price than buying them separately.
A general liability insurance policy can be beneficial for almost any business. However, it is particularly important for sole-proprietors, partnerships, and LLCs. Regardless of your company structure, a lawsuit alleging that your business caused bodily injury or property damage can threaten your personal assets as well as your bank account. A general liability insurance plan can protect your personal assets, by covering the cost of litigation and any judgments that are awarded against you.
A small business averages $42 per month for general liability coverage, but this cost can vary depending on the risks you face. Contact a licensed agent for more information on general liability insurance or other types of small-business insurance. They can also help your business meet any insurance requirements, such as those set by your landlord or lenders.
Business Owners Policy
A business owner’s policy (BOP) is a cost-effective way for small businesses to protect themselves from property damage, lawsuits and loss of income. It bundles general liability and commercial property insurance into a single package that is often cheaper than buying the policies separately. This is a smart choice for small businesses that work directly with the public, or have valuable inventory and equipment.
BOPs typically include both commercial general insurance and business interruption coverage, which pays for the costs of keeping your door open in case a fire or natural catastrophe prevents you working in your building. It also provides coverage for lost income from temporary closures and the expenses associated with operating out of a temporary location. Many insurers allow you to customize a BOP by adding add-ons such as cyber liability insurance or workers’ compensation.
As with all insurance policies, the cost of a BOP depends on a variety of factors, including your coverage needs, industry, size of business and claims history. The higher your premiums will be, the more coverage you choose to include. The type and value of your business’s property is another important factor when determining the cost of a BOP. The cost of insurance will be lower if the value of the property is lower and it’s easier to replace.
In addition to the parameters above, insurers might have specific requirements when it comes to a BOP. These may include your business’ location and revenue, as well as its class of business. For example, they may not offer a BOP to construction companies with significant off-site work because the property risks are too great. They may also limit the amount of coverage, such as a limit on equipment or inventory.
Insurance providers who also sell property and general liability insurance often offer a BOP, which simplifies shopping for a policy. It’s worth comparing options before selecting a small business policy, as not all insurers offer BOPs.
Commercial Insurance
A licensed insurance agent can help you determine the type of commercial business insurance you need for your company. There are different types of insurance policies to cover property damage and bodily injury. Commercial insurance includes commercial general liability, auto and workers’ compensation.
All businesses need general liability insurance. It covers damages that you may be liable for if someone gets injured in your office, retail shop or factory. It can pay for legal costs and settlements when a customer claims to have been injured by your product. This policy is the basis of most small business policies and protects you against a wide range of lawsuits.
Worker’s compensation pays for medical costs and lost wages if an employee is injured at work. You may need to purchase commercial automobile insurance if your employees drive vehicles for business purposes. You can also buy a policy which protects your company from cyber-threats and data breaches. These policies can pay for costs related to notifications, credit monitoring and other services that will help your business recover from a crisis.
Your business’s size, industry and equipment will determine what type of insurance you require. You can buy a Business Owners Policy, which bundles commercial property insurance with general liability insurance. This is the most affordable way to obtain the most important coverage for a small company.
Insurers
Choosing an insurer is essential to getting the right coverage for your business. Most small businesses need more than just general liability insurance, so it’s important to find a provider with a large catalog of policies and experience in your industry.
Aside from general liability, many insurers also provide other common small business insurance policies such as commercial property insurance and business interruption insurance. Some insurers offer a Business Owner’s Policy (BOP) that bundles these types of policies into one cost-saving package for small businesses. Some insurers offer niche policies, such as professional liability coverage for accountants and lawyers, or cyber insurance to protect against data loss.
State Farm Insurance, Farmers Insurance, The Hartford and Liberty Mutual are all well-known insurers with extensive small business insurance options. These providers are well-established in the insurance sector and can offer small business solutions across the United States. Some, such as Chubb, Hiscox and Nationwide have created separate divisions that focus on small businesses, offering tailored insurance products for specific industry.
Other small-business insurers have been around for less time, but still have substantial expertise and can offer a variety of policies. Next Insurance, for example, is a small business insurer with a team of professionals that specialize in providing clients with policies that are easy to understand. Embroker CyberPolicy BiBERK and other specialty insurers offer a wide range of options for small business insurance.
When choosing an insurer, it’s a good idea to read reviews and compare prices. Many online comparison websites will provide quotes from a number of different insurers and may highlight the best options for your business. For example, a website called Simply Business can help you compare quotes from top small business insurance providers including Travelers, Hiscox, and Clear Blue Insurance Company.
