Get Great Coverage in Minutes
All it takes is a few clicks.
Business Liability Insurance
Updated 09:11 AM EST, Thu January 28, 2021
What Is Business Liability Insurance?
What Does Business Liability Insurance Cover?
Your business liability insurance policy can help cover claims like:
- Bodily injury caused by your business
- Medical costs for customers injured by your business
- Property damage, like if your employee breaks a client’s window while working in their home
- Reputational harm if someone sues you for libelous or slanderous statements
- Advertising injuries or errors, such as copyright infringement in your marketing materials
- Damage to property you rented that’s caused by a fire, lightning strike or explosion
Many business owners increase their protection by bundling coverage through a Business Owner’s Policy (BOP). A BOP combines three insurance coverages into one convenient policy:
For small business owners, a BOP provides a good foundation for protection. With a packaged policy, you can get protection while also saving on insurance costs.
It’s also important to be aware that your business liability insurance policy doesn’t cover all claims. You may need other types of insurance to help you get full protection for your business. For example, you’ll likely need:
- Employment practices liability insurance if an employee sues you for wrongful termination, harassment or discrimination.
- Professional liability insurance to help protect your business if a client sues you for making a mistake in the services you provide.
- Management liability insurance, which can help cover costs if your directors or partners get sued for how they run the business.
- Workers’ compensation insurance if an employee files a claim after they hurt themselves on the job.
- Commercial auto insurance to help cover costs of an auto accident if you or your employee is at fault.
Having the right liability insurance for your business can help cover these types of claims and related expenses, like legal defense costs. Without the proper coverage, you may have to pay these costs yourself. You’ll also want to get a certificate of insurance that shows you have the right business insurance coverages.
Who Needs Business Liability Insurance Coverage?
- Has employees
- Interacts directly with customers
- Works in a high-risk industry
- Frequently works off-premises
This insurance can help protect many businesses in various industries. For instance, if you’re hired as an independent contractor, and you damage your customer’s walls, this coverage can help pay the cost of repairs. It can also help protect your business if you’re in a lower-risk industry. So, if your client trips in your accounting firm and breaks her arm, this coverage can help pay her medical bills.
How Much Does General Business Liability Coverage Cost?
Every business is unique. So, there’s not a one-size-fits-all business liability insurance policy. This means your business will have its own general liability insurance cost that’s based on several factors, like your:
- Policy deductible: Your deductible amount impacts your cost. For example, choosing a lower deductible can increase your premium.
- Coverage details: You can add optional coverages to your business liability policy. This will increase your insurance rate, because your business has more protection.
- Type of business: Insurance companies often charge industries with more risk a higher rate than companies in low-risk industries. For instance, a landscaping business will likely have a higher rate than an accounting firm.
- Years of experience: The more experience your business has, the lower your rate can be. Newer businesses can have an increased rate because there’s a higher risk of claims.
- Location: Busier places can increase your business’ liability risks. For instance, being in a city with more foot traffic can increase your insurance rates, because there’s a higher risk of customer injuries.
- Claims history: If you haven’t caused any customer injuries or property damage, you’ll likely have a lower rate.
To find the best rate, it’s a good idea to compare insurance quotes from multiple companies. To get started, get a quote from us today.
How Much Does a One Million Dollar Business Liability Insurance Policy Cost?
The cost of a business liability insurance policy with a $1 million limit can depend on your industry, location, coverage details and claims history. This means everyone’s rate will be unique for their business.
Find Out More About Business Liability Insurance
Without business liability insurance, your company may have to pay the cost of claims out of pocket. So, it’s important to get the right coverage to help protect your business. With over 200 years of experience, we understand how every business is unique. To learn more about our small business insurance, get a quote today.