Getting General Liability Coverage

What is Liability Coverage?

U.S. laws operate under a general insurance system designed to protect third-parties from the costs of injuries or damages caused by others. This legal system automatically causes a person or business to become legally liable when an event or action under their control causes damage to another party.
Buying general liability coverage helps business owners manage risk through insurance.

A liability can be triggered by something as simple as a slip or fall on your property, or something as complex as personal injuries caused by slander or actions. General liability insurance is a third-party coverage only. It does not protect business owner from injuries to employees or damages and losses to their own property. Intentional damages and contractual obligations are not typically covered by a general liability policy.

Why Purchase Business Liability Insurance?

Every business needs liability coverage to protect their business from legal liability for injuries and damages caused by their actions, mistakes, or negligence. A liability insurance policy protects a business from third-party claims. In fact, the insurance carrier has a duty to defend an insured when a claim is made against them.

In many instances, a lawsuit does not need to be filed in order for an insurance company to respond to a general liability claim. One of the key advantages to having coverage for your business is that your insurance company can work on your behalf to resolve and settle the liability before a lawsuit is filed against you. This process helps to keep the cost of liability coverage lower because financial reparations can be made quickly and without additional legal costs.

How Much is Business Insurance?

Business insurance costs vary considerably depending on the nature of your business and the insurance products offered. General liability is the most common type of business liability insurance because virtually ever business is required to carry business liability coverage.

How much does general liability cost for a small business.
The U.S. insurance system allows insurance companies to establish their own liability rates, subject to the approval of each states’ Department of Insurance. Most carriers utilize similar classification systems to categorize each type of business for rating and pricing. Rates are typically developed on a per $1,000 dollar based. Premium calculations may be based on a) gross sales, b) gross payroll, c) square footage of premises, or d) a combination of these factors.

The cost of liability insurance will also vary by state. Some of the factors that influence the price of coverage in a state include a) the cost of living, b) state liability laws and regulations, c) the cost of medical and legal services, and d) historical losses and claims data for the state. Insurance carriers will often withdraw from states where they are not profitable, or where state regulations increase their risk too much.

How to Shop for Commercial Insurance?

Shopping for commercial liability insurance can be tricky, both in terms of coverage quality and premium cost. Not all insurance policies are created equal; nor do they provide the same level, or depth, of coverage. Commercial insurance is very different than personal home or auto insurance because businesses and policies are much more unique.

Their are only so many differences and variations from one vehicle to the next. Homes and autos may vary in materials, size, and values, but the risks associated with owning a home and operating a vehicle are similar for everyone. Business liability is unique. It represents a much broader range of risks and liabilities because every industry and type of business has its own unique risks.
Shop for commercial business insurance with agents who are business insurance experts.

Many insurance agents are generalists, meaning they offer a broad range of insurance products such as business, life, personal, health, etc. It’s difficult to be an expert at any one product when you offer such a broad range of insurance.

At General Liability Shop.com, all we do is business insurance.

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Do I Need Professional Liability Insurance?

Not every business needs professional liability coverage. It really comes down to whether or not you have a professional risk, or legal liability, with regard to providing professional services or giving technical advice.

Professional Liability Insurance is also a third-party insurance coverage; however, rather than protecting a business against bodily injury or property damage, it’s designed to protect financial losses caused by a) failure to perform, or b) or errors and omissions by business professionals.

Who Needs Professional Liability Coverage:
  • Accountants
  • Attorneys
  • Doctors
  • Insurance Agents
  • Consultants
  • Mortgage Brokers
  • Charities
  • Non-Profits
  • Home Inspectors
  • Real Estate Agents
  • Financial Planners
  • Technology Companies
  • Beauty Salons
  • Fitness Professionals
  • Architects and Engineers
  • Psychologists
  • What Others Lines of Business Coverage Do I Need?
    Business owners may often need more than just general liability insurance to fully protect their business from all types of liability risks. We offer a full line of commercial insurance products to help insurance your small business and give you peace of mind. Contact our business insurance Specialists to get a free coverage review for your business today.

    Bundle your coverages for even more discounts and savings.

    Does my business need other coverages besides general liability insurance?