WEDNESDAY, SEPTEMBER 16, 2020
General liability is a key insurance that is critical for businesses across industries. It provides coverage for common accidents and claims regarding bodily injury, property damage and personal and advertising injury. So how much does a simply general liability policy cost? 
Influencing Factors on General Liability Insurance
As with any other insurance policy, general liability premiums are calculated based on more than one factor. Factors that can change your insurance premium costs include:
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Location
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Industry
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Size of the business
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Claims history
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Coverage limits
For a basic $1 million general liability insurance policy, a business may pay anywhere between $300 and $1,000 a year depending on the above factors. Of course, the size of your business matters. Larger businesses tend to pay more for general liability insurance due to the increased risk large businesses face with more clients, locations, products, etc.
Even if your business is small, you could pay higher rates due to the industry. If you run a business that offers physical activities, such as yoga, a gym, swim lessons, etc., you may pay higher premiums in case of accidents. This is because certain industries have higher risk of injury than others, as well as a longer history of claims. A business with previous general liability claims may pay more for general liability insurance, as they are seen by the insurance provider as more likely to file a claim than a business who has never filed one.
Deductibles and coverage limits vary per policy depending on your business’ needs. A higher deductible can save your business money on monthly premiums, but it also means that you will pay more out of pocket if you must file a claim.
How Much General Liability Insurance Should a Business Carry?
The amount of general liability insurance your business should carry may be different than the neighboring business. Most policies come in millions, such as $1 million, $2 million or $5 million per policy period. You should adjust the limits of your business’ general liability insurance based on the level of risk your business faces. If you frequently have customers coming in and out, have uneven floors or provide potentially harmful products (such as hot plates in a restaurant), you may need higher general liability limits than a simply office space with few visitors. Be sure to speak with your insurance agent about how much coverage your business may need.
1 Comments
Thomas k Schultheis said...
this is a vacant lot in a resort and the HOA now wants $1M in liability if I rent it. all it is is grass and a concrete slab with RV hookups. Income is usually no more than $3000 a year.
FRIDAY, SEPTEMBER 24 2021 9:37 PM
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