Cheap General Liability Insurance: What You Need to Know

If you own a business, general liability insurance is a must-have. It covers the costs of lawsuits related to bodily injury or property damage that your business may be responsible for. Without it, you could be held personally liable for these costs, which can quickly add up and put your business at risk. However, finding affordable general liability insurance can be a challenge. In this article, we’ll explore what general liability insurance is, why it’s important, and how to find the cheapest coverage.

What is General Liability Insurance?

General liability insurance is a type of business insurance that covers the costs of lawsuits related to bodily injury, property damage, and advertising injuries. It’s designed to protect your business from financial losses if you’re found liable for these types of claims. General liability insurance doesn’t cover injuries to your employees or damage to your property, but those risks can be covered by other types of insurance.

Depending on your policy, general liability insurance may cover:

Damage Type
Example
Bodily Injury
A customer slips and falls in your store and breaks their arm
Property Damage
You accidentally break a customer’s expensive vase while making a delivery
Advertising Injury
You’re sued for libel or slander in your advertisements

Why is General Liability Insurance Important?

General liability insurance is important for several reasons. First, it can protect your business from financial losses if you’re sued for bodily injury, property damage, or advertising injury. These types of lawsuits can be costly and time-consuming, and without insurance, you could be on the hook for the entire amount.

Second, many business owners are required to have general liability insurance by their clients or landlords. If you don’t have insurance, you may not be able to take on certain clients or lease a space for your business.

Finally, general liability insurance can give you peace of mind knowing that your business is protected from unexpected events. You never know when someone might slip and fall in your store or claim that your advertising is false or misleading. Having insurance can help you rest easy knowing that you’re prepared for these types of situations.

How to Find Cheap General Liability Insurance

Now that you know the importance of general liability insurance, let’s talk about how to find the cheapest coverage. Here are a few tips:

Compare Quotes from Multiple Insurers

The easiest way to find cheap general liability insurance is to compare quotes from multiple insurers. You can do this online or by working with an insurance agent. Be sure to compare policies and coverage limits to make sure you’re getting the best deal.

Choose a Higher Deductible

A deductible is the amount you’ll pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your monthly premiums, but it also means you’ll have to pay more if you ever need to file a claim. Consider how much you can afford to pay out of pocket before choosing a deductible.

Bundle Your Policies

If you need other types of insurance, such as property or workers’ compensation insurance, consider bundling your policies with one insurer. Insurers often offer discounts for bundling, which can help you save money on your overall insurance costs.

Ask About Discounts

Finally, be sure to ask your insurer about any discounts they offer. They may offer discounts for paying your premium in full or for having a good claims history. Every little bit helps when it comes to saving money on insurance.

FAQ

What does general liability insurance cover?

General liability insurance covers the costs of lawsuits related to bodily injury, property damage, and advertising injury. It does not cover injuries to your employees or damage to your property.

How much general liability insurance do I need?

The amount of general liability insurance you need depends on your business and its risks. Most insurers offer policies with coverage limits ranging from $1 million to $5 million.

Is general liability insurance required by law?

No, general liability insurance is not required by law in most states. However, many clients and landlords require it, and it’s a good idea for any business owner to have.

What other types of insurance should I consider?

Other types of insurance you may need as a business owner include property insurance, workers’ compensation insurance, and professional liability insurance.

Can I change my coverage limits?

Yes, you can typically change your coverage limits at any time by contacting your insurer. Keep in mind that changing your coverage limits may affect your premiums.

Overall, cheap general liability insurance is an important investment for any business owner. By following these tips and shopping around for the best coverage, you can protect your business without breaking the bank. If you have any questions or need help finding affordable insurance, don’t hesitate to reach out to an insurance agent.