Saving money on commercial general liability insurance involves analyzing your risks, reducing your liabilities as much as possible, and comparing insurance quotes from multiple providers.
General liability insurance covers common business risks, such as a customer’s bodily injury at your business, damage to a customer’s property, or an advertising injury. If a customer blames your business for an injury or other harm, a general liability policy would help pay for any resulting legal fees and medical payments.
While it might seem financially sound to buy the least amount of coverage possible to reduce insurance rates, doing so could cost you more in the long term if you face an expensive lawsuit. Fortunately, that's not the only method of lowering costs.
Let’s take a look at four ways you can save money on a general liability insurance policy:
Getting quotes from multiple insurance companies is one of the best ways to find affordable general liability insurance. You could go straight to the source and contact each carrier directly, or you could work with an online insurance marketplace like Insureon that represents several providers.
Keep in mind that the policy with the lowest premium isn’t always the best option. You should also consider its deductible and coverage limits, along with any exclusions it might have.
At Insureon, you can get small business insurance quotes from top-rated providers with a single online application. Our licensed insurance agents are available to help you customize a policy for your business's unique needs. Once you select the business liability insurance you need, you can get coverage and a certificate of insurance in less than 24 hours.
You know you need insurance for your small business, but where to start? And how can you keep costs down?
Insureon is here for you. You can get customized quotes from top carriers.
Most small businesses start with a general liability policy. You can combine property coverage with your liability insurance at a discount of $57 per month. Maintaining a safe work environment can help you manage risk and lower your insurance costs too.
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Many small business owners save money on general liability insurance with a business owner’s policy (BOP). A BOP combines general liability coverage and commercial property insurance in one policy, and is usually less expensive than buying liability and property coverage separately.
A BOP typically provides coverage for:
When buying a general liability policy, it’s important to make sure you’re fully covered in case of an accident, while also keeping your premium as low as possible. You’ll need to take a close look at your business and its coverage needs, which may require help from an agent.
Some ways of saving money on a general liability premium are rather easy. For example, many insurance companies offer a discount if you pay your entire premium on an annual basis rather than monthly.
How you set your policy limits and deductible can have a tremendous impact on your business insurance costs.
Every general liability policy has a per-occurrence limit and an aggregate limit. The per-occurrence limit is the maximum amount the insurance provider will pay on a single claim. The aggregate limit is the most it’ll pay for all claims during the policy period, which is usually one year. The higher your coverage limits, the more expensive your premium.
While it's tempting to choose lower limits, you could end up paying more in the long run if you have an expensive claim but not enough insurance to cover it.
If you have several liability policies, another option is commercial umbrella insurance. This policy offers an affordable way to increase your insurance coverage across multiple policies, not just your general liability policy.
Finally, you can save money by choosing a higher deductible, but there's also a tradeoff. Insurance companies won't provide any benefits until you've paid the deductible, so make sure it's an amount you can easily afford.
Your general liability policy may include coverage you don’t necessarily need. If that's the case, see if you can have it removed to lower your premium. You might also consider a different policy that doesn’t have those extras.
Likewise, you’ll want to make sure the policy's exclusions don’t leave out risks you want to insure. You may be able to add an endorsement to a policy that's lacking coverage you want, such as product liability insurance.
When it’s time to renew your policy, your insurer might conduct a premium audit to make sure your risks match your coverage. They'll look at your business and its financial records to make sure your insurance coverage accurately reflects your risks.
Your claims history is a significant factor in setting your general liability premium. Risk management programs, training, and safety reviews with your employees can help you avoid claims and keep your premium at an affordable rate.
If your business is open to the public, make sure your entrances and exits are well lit and all areas are free of obstructions. This includes walkways and parking areas. Inspect your property on a regular basis to prevent slip-and-fall accidents before they happen.
If any unsafe issues arise, such as a wet floor or a broken step, make sure you post a warning sign and fix the problem promptly. Document your efforts for ongoing repairs, and establish a procedure for employees to report and eliminate hazards.
To avoid product liability lawsuits, you'll want to ensure the safety of your products. This is true for manufacturers, retailers, and wholesalers, as anyone in the supply chain could be held liable for a defective product or similar issue.
Any product you sell should undergo rigorous safety testing before you offer it to the public. Whatever documentation or instructions you include with your products should be easy to understand and explain any risks associated with their use.
Make sure anything you publish—whether on social media, your website, or advertisements—avoids any risk of personal injuries and advertising injuries. That includes libel, slander, invasion of privacy, and reputational harm.
For example, a customer might file a lawsuit if you post a photo of them without permission on your business's Facebook page. If you compare your business to other companies, make sure you can prove whatever you claim.
Establishing a set of rules for advertising campaigns and social media posts, and offering guidelines for your employees, can help avoid a lawsuit.
If your business handles other people's property, make sure you follow the best practices within your field and train your employees on risk management. For example, employees at a computer repair shop might be prohibited from bringing drinks into the repair room, or a bar might prohibit customers from charging their phones at the counter.
Depending on your industry, you may need to secure additional coverage for belongings in your care, custody, or control, such as garage keepers insurance for customer vehicles stored at a repair shop.
As with other safety measures, make sure you document your efforts and check that your employees are following the correct procedures.
While general liability insurance covers the most common business risks, you’ll likely need other types of insurance to fully protect your business.
You may also need these business insurance policies:
Business owner’s policy: A business owner's policy bundles general liability insurance with commercial property insurance to protect against liability claims and property damage. It generally costs less than buying these two policies separately.
Workers’ compensation insurance: Workers' comp is required in almost every state for businesses that have employees. It covers medical expenses for work injuries, which are not often covered by regular health insurance.
Cyber insurance: This policy helps small businesses recover financially from data breaches and cyberattacks. It's recommended for any business that handles credit cards or other personal information.
Professional liability insurance: Also known as errors and omissions insurance (E&O), this policy covers the cost of client lawsuits over unsatisfactory work. Many states require that you hold professional liability coverage before you can submit your application for certain professional licenses.
Complete Insureon’s easy online application today to get free quotes for general liability insurance coverage from top-rated U.S. companies. You can also speak with an agent about the types of coverage your business needs and any discount bundles for general liability and other insurance products.
Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.