Best Business Liability Insurance Companies

Business liability insurance can reduce some of the financial risks of owning a business. There are several types of business insurance coverage, but general liability insurance and professional liability insurance are the most common. The best business liability insurance companies offer comprehensive coverage, competitive prices, and helpful customer service.

What Is Business Liability Insurance?

Business liability insurance is protection against claims arising from injuries or damages sustained by a third party as a result of your business operations. It can help cover medical expenses, property damage, and legal fees associated with a lawsuit.

For example, if a customer slips and falls in your store, you could be liable for their medical expenses. Or, if one of your employees damages a client’s property, you could be sued for the cost of repairs. General liability insurance can help cover the cost of these types of claims and the legal fees associated with defending against them.

To choose the best business liability insurance for your company, consider your business’ size, industry, and location. Also compare quotes from multiple insurers to find the policy that offers the best coverage at the most affordable price.

Who Needs General Liability Insurance?

Businesses of all sizes and types need some form of liability insurance, and business owners should tailor liability insurance to fit the specific needs of their business. For example, a construction company may be at greater risk for accidents than a marketing firm.

In many cases, businesses are required to have some form of liability insurance to operate. For example, many landlords will only lease space to businesses with general liability insurance. And many professional associations require their members to carry professional liability coverage.

Liability insurance is a wise investment for any business, even if it’s not required. Coverage can help you avoid costly legal settlements, repairs, and other costs that have the potential to bankrupt your business.

What Does General Liability Insurance Cover?

General liability insurance can help cover the cost of medical expenses, property damage, and legal fees associated with a lawsuit or other claims facing your business. To address these needs, general liability insurance generally covers the following types of claims:

Bodily Injury

Bodily injury coverage can help cover the cost of medical expenses if a third party is injured as a result of your business operations. For example, if a customer slips and falls in your store, this type of coverage could help pay for their hospital bills.

Property Damage

Property damage coverage provides financial protection for the repair or replacement of damaged property belonging to a third party. For example, if one of your employees accidentally damages a client’s computer, this type of coverage could help pay for the cost of repairs.

Personal Injury

Most general liability policies also include coverage for personal and advertising injuries. This type of coverage can help protect your business from claims arising from false imprisonment, defamation, and copyright infringement. Coverage also protects against the financial impacts of libel or slander by helping to pay for the costs of defending your business.

What Does Business Liability Insurance Exclude?

General liability insurance does not cover every possible risk your business may face. For example, this type of coverage does not typically cover professional errors or mistakes, product defects, or intentional acts.

These are some of the things most commonly excluded from general liability policies:

• Liability assumed as part of a contract
• Expected or intended damage stemming from intentional acts
• Liquor liability for companies in the business of making, selling, serving, or otherwise furnishing alcoholic beverages
• Workers’ compensation claims
• Damage arising from the operation of mobile equipment like forklifts or tractors
• Business property protection for things like the company’s office building, inventory, and other materials
• Professional negligence or damaged products, including product recall
• Damages resulting from electronic data breaches

If you need coverage for these types of risks, you may need to purchase a separate policy, such as errors and omissions insurance or product liability insurance. Depending on your needs, you should also consider investing in other types of insurance, such as property insurance, workers’ compensation insurance, or commercial vehicle coverage.

How Much Does Business Liability Insurance Cost?

The cost of general liability insurance varies depending on the size and type of your business, the number of employees, and its location. Costs also depend on the amount of coverage you need, your claims history, and whether your business is public-facing. In most cases, companies can expect to pay around $30 per month for general liability insurance, plus more for additional coverage.

Some businesses may qualify for discounts on their premium by bundling their liability insurance with other types of coverage, such as property insurance or workers’ compensation insurance.

What Is the Difference Between Business Liability Insurance and a Business Owners’ Policy?

A business owners’ policy, or BOP, is a type of insurance that bundles together general liability insurance, commercial property coverage, and business interruption insurance. This kind of policy can be a good option for small businesses that need comprehensive protection at a reduced price.

Depending on the policy bundle, a BOP may include coverage for the business’ building, contents, and equipment in addition to general liability coverage for the business’ operations. In most cases, BOPs do not cover professional errors or mistakes, product defects, or intentional acts.

The cost of a BOP varies depending on the size and type of your business and the amount of coverage you need. In most cases, businesses can expect to pay between $500 and $2,000 per year for this type of policy.

What Do You Need to Take Out a Business Insurance Policy?

The documents needed to take out a business insurance policy vary by insurance company. However, you will likely need to provide basic information about your business, including its type of operations, location, and number of employees. You’ll also need to provide details about the type and amount of coverage you want and how much you can afford to pay in monthly premiums.

How Much Coverage Do I Need for My Business?

The amount of coverage you need depends on the size and type of your business, as well as the amount of risk you are willing to take on. In most cases, businesses should carry at least $1 million of coverage per occurrence with a $2 million aggregate policy limit.

Some businesses may need more coverage depending on their operations. For example, companies that work with hazardous materials or have a lot of customer contact may need higher limits than those that do not.

Choose a policy limit with the help of an insurance agent or broker who has experience with your industry. They can assess your risks and ensure you have the right coverage for your needs.

Frequently Asked Questions

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What insurance do you need when starting a small business?

The type and amount of insurance your business needs ultimately depends on factors like your industry, location, and the size and scope of your operations. However, there are some types of insurance that most businesses should consider. These include property insurance, liability insurance, and workers’ compensation insurance (for those with employees). Speak with an insurance agent or broker to determine which coverage is right for your business.

How do I know if I need small business insurance?

When deciding if you need small business insurance, consider the size and type of your business and the amount of risk you are willing to take on. In most cases, businesses should carry at least $1 million in coverage per occurrence. However, depending on your operations, you may need more or less. Work with an agent to determine whether your business can benefit from coverage.

What is a business owners policy (BOP)?

A business owners’ policy (BOP) is a type of insurance that provides comprehensive protection for a business. BOPs typically include coverage for the business’ building, contents, and equipment. They may also have liability coverage for the business’ operations. In most cases, BOPs do not cover professional errors or mistakes, product defects, or intentional acts.

What is the average cost of general liability insurance?

The average cost of general liability insurance depends on various factors, including the size and type of business, the amount of coverage purchased, and the state where the company is located. However, businesses can expect to pay $30 per month for general liability insurance.

Speak with an insurance agent or broker to get a more specific estimate for your business. They can assess your risk and recommend the right amount of coverage for your needs.

Should you get general liability insurance for your LLC?

The best way to find out how much coverage you need is to work with an insurance agent or broker specializing in this type of coverage. They can help you assess your risks and make sure you have the right amount of coverage for your business.

What kinds of business insurance are there?

There are a variety of different business insurance policies available, each of which provides different levels of coverage. Some of the most common types of business insurance include property insurance, liability insurance, and workers’ compensation insurance.