3 Ways to Lower the Cost of Your Commercial General Liability Insurance
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Commercial General Liability Insurance is your small business’s go-to policy for third-party lawsuits over bodily injuries, property damage, advertising injuries, and more. It’s coverage you can’t afford to go without. But as a small-business owner, you may be running things on a shoestring budget until you can turn a substantial profit. How do you save money on this essential coverage?

First, know that the cost of General Liability Insurance will vary based on your business’s…

  • Size.
  • Industry.
  • Revenue.
  • Claims history.

Even with these variables in play, you can cut down on insurance spending. Here are three easy ways to reduce your Commercial Liability Insurance rates.

1. Bundle Your Insurance Policies

Many retail stores market big sales with proclamations like, “The more you buy, the more you save.” This isn’t always true because you might end up buying items you don’t really need.

With insurance, however, you can get discounts when you purchase multiple policies from the same provider. For example, if your business has a low-risk profile, you may qualify for a Business Owner’s Policy. A BOP bundles Commercial General Liability and Property Insurance together at a reduced rate. Sure, you'll save some green, but you’ll also have two crucial policies backing up your small business.

2. Pay Your Entire Premium Up Front

Your General Liability policy’s premium can typically be paid in monthly or annual installments. It might be tempting to go with a smaller monthly payment, but consider paying your entire premium upfront. You can usually save a little money this way because many insurers offer discounts for premiums paid in full. Plus, it's one less bill to juggle month to month.

3. Proactively Manage Your Risks

If your small business has a clean claims history, expect to pay lower insurance rates. But how do you reduce the number of claims you make? In a nutshell, you must proactively manage your business's risks. An effective way to do this is to create a comprehensive risk management plan. This may include…

  • Developing a thorough training program for employees.
  • Investing in a security system.
  • Compiling rules for posting to social media.
  • Creating procedure checklists and reviews.
  • Minimizing hazards on your premises.

Take the time to properly identify the types of risk your small business faces, which may vary from industry to industry. A dog groomer won’t have the same exposures as a food truck owner.

Cut General Liability Costs without Cutting Corners

Finding ways to save on your insurance rates can make each dollar you earn stretch a little further. With an action plan in hand, you can save without sacrificing protection for your small business.

For more ideas on how to lower the cost of your General Liability Insurance and other small business policies, read our post “The Small Business Guide to Cutting Insurance Costs.”

General Liability Insurance: Further Reading

General Liability Insurance in the Insureon Blog

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