Published on March 18th, 2020 | by Sunit Nandi0
A Guide to Obtaining General Liability Insurance for Your Business
General liability insurance protects your business from the most common liability claims, including damage to another person’s property, bodily injury to a third party, and advertising liability claims. General liability insurance is also referred to as business liability insurance or commercial liability.
This policy is among the most common insurance policies bought by businesses. It helps cover the most common claims by others to your business.
Without general liability insurance, your business will be required to pay the cost of these claims. Very few businesses can survive if they are faced with a significant liability claim without insurance. Even churches need church liability insurance.
While the law does not require businesses to carry general liability insurance, some clients will require you to have GL before giving you a contract. Typically, larger companies will require smaller contractors and vendors to provide proof of general liability insurance. Through this, if a hired business is faced with a liability claim, the claim can be handled and will not affect their contractual obligations.
What’s Covered by a Business Liability Policy
As said earlier, this business insurance protects the business against the costs of liability claims. These includes:
- Property damage or bodily injury claims
- Reputational harm
- Advertising errors
How Much Does General Liability Insurance Cost?
Several factors will determine the amount you’ll pay for general liability insurance. They include:
- Business location
- Industry type
- Condition of the building your business is located in
A Comprehensive Guide to Obtaining Small Business Insurance
Buying insurance for your small business can be a daunting task. But don’t worry, we’re here to guide you. Here are the steps to follow:
1. Gather All the Information and Documents Required
It’s advisable to gather the required information before you start the quoting process. Some of the information you might be required to provide include:
- Your contact information
- The number of employees in your company
- A business revenue estimate for the upcoming year
- The kind of work involved in your business and the related risks
- The location of the business
- How long you’ve been running the business
2. Contact the Insurance Company or a Broker
If you need help in choosing the right general liability insurance, contact an insurance broker or company.
An insurance broker is someone who helps buyers find an insurance cover that meets their needs. They can also help you understand the policy limits as well as who to purchase from.
You can also contact the insurance company directly to inquire about their coverages. For instance, Next Insurance offers general liability insurance. You can contact them to know about their coverage and their quotes for your business.
They have specialists that will help you choose the right type of coverage for your business. They’ll ask you some questions about your business, for instance, the number of employees you have, the type of industry, the location of your business, etc.
That information will help determine the right coverage as well as limits for your business.
3. Determine Your Insurance Needs
Every business has its unique insurance requirements. A graphic design firm or a hair salon might have several similar needs but they also have other different needs that address more specific risks for each business.
For instance, both of them may need general liability, property damage, and professional liability. However, the graphic design firm might be required to buy commercial auto insurance to cover employees who drive while on work. The hair salon, on the other hand, might not need commercial auto insurance. instead, it might require business interruption coverage or beauty insurance to protect against income loss in the event they shut down temporarily as a result of a covered loss. Now Insync Insurance and few other companies have come up with micro niche insurance like these to protect the small business.
4. Know Your Policy Options
There are many factors to consider when purchasing a general liability insurance policy. Cost is among them.
Apart from the types of insurance coverages and the limits you choose, how you pay your premiums can affect the cost of your GL premium. You can save money by paying for your policy annually. Most insurance companies will offer a discount to customers who pay the whole annual premium upfront.
Likewise, you can receive a discount if you bundle your general liability by buying a business owner’s policy which combines business property coverage and commercial general liability in one policy. You’ll save more compared to if you bought the coverages separately.
We would also advise you to look into an insurer’s claim rating. You’re surely not want to deal with bad customer service that puts you on hold for hours.