Intended to protect companies from claims arising from injuries or property damage, a comprehensive general liability policy is an essential cog in ensuring the long-term financial health of any business–no matter how large or small. Yet no one should assume that all commercial liability insurance is created equally. When figuring potential premium costs, it is important to consider the following factors:
It doesn’t take a rocket scientist to figure out that a primary indicator of premium costs is the industry or profession being insured. The more your business is exposed to incidents that could result in property damage or personal injury to a customer or third party, the higher the potential premium. Below is a list of a few of the businesses that tend to have higher premium costs:
- Construction firms
- Retail stores
- Restaurants and bars
- Janitors and housekeepers
The cost of insurance is partially dictated by the limits of coverage. The more coverage–both for a single incident and for the aggregate life of the policy–the higher the cost to the insured. Expense notwithstanding, small businesses should prudently consider their needs when choosing a coverage level. It is hardly worthwhile to carry a general liability policy that is not equipped to cover potential claims.
Bundling and/or Pre-Payment
Bundling liability with commercial property insurance in a business owner’s policy often results in significant savings. Another option for reducing costs is pre-payment upfront of the entire premium. An agent specializing in commercial liability insurance can help businesses determine a cost-effective plan.