Follow our five-step guide to learn more about liability insurance, like what information you need before getting a quote, plus tips to help you get the right coverage for your business.
1. Gather the Required Information and Documents
It’s helpful to gather the necessary information before you start the quoting process. If you’re wondering, “What do I need to get liability insurance?” you’re not alone. Some of the information you may need to provide about your business operations includes:
- The number of employees working for your business
- Estimated business revenue for the upcoming year
- Basic contact information
- Information on what work your business does and its risks
- Your business’ location
- Details about your business premises
- Documentation on how long you’ve owned your business
2. Contact an Agent, Broker or Insurance Company
If you’re asking yourself, “Where can I get liability insurance?” you have a few options. You can work with an
insurance agent or directly with an insurance company. Most insurers have specialists that can help you get the right coverages for your business. They’ll likely ask you questions about your business, such as:
- How many employees do you have?
- Where is your business located?
- What type of work does your business do?
Businesses with more complex risks can work with an insurance company or broker. A broker works with a buyer to find the right types of coverage for their needs. They also suggest limits for policies and which insurer to buy from. If your company buys from a broker, you’ll also pay for their services.
3. Consider Your Business Characteristics
A business insurance plan won’t include the same coverages for every company. That’s because each business has unique needs.
It’s not uncommon for two businesses to have several similar key coverages but others that differ and address specific risks. For example, your business and a nearby company may both have:
And because your business provides a professional service to customers, you may need other types of business insurance, like:
If you need advice on how to help protect your business from the different risks it faces, we can help. Our specialists are available to talk with you about your insurance options and recommend coverages based on your business’ specific needs.
4. Carefully Evaluate Your Options
There are several variables to consider when choosing the right general liability insurance policy for your business. Cost is important, and different factors can affect how much you’ll pay for insurance, such as:
- Coverage amounts, because higher limits can increase your premium.
- How you pay your premium, since paying upfront can result in a discount.
- Bundling insurance coverages, which can help you save on business insurance.
Don’t focus just on the cost, because picking an insurance quote based on a low price may not give your business enough coverage. That’s why it’s important to go through each quote and review the coverage amounts and limits, so you don’t put your business at financial risk. For example, if you have a significant liability claim and it exceeds your policy limit, your business will have to pay the difference out of pocket.
It’s also a good idea to check each insurance company’s claims rating. You should be able to trust them to deliver a good experience. The last thing you want when you’re dealing with a small business emergency is to be put on hold for hours or deal with bad customer service. When considering where to get liability insurance, choose an insurer that has excellent customer service and claims service experience ratings.
5. Relax Knowing You May Be Better Prepared
Liability claims aren’t as uncommon as you may think. In fact, The Hartford has found that 40% of small businesses are likely to file a claim within the next 10 years, and the costliest claim for small businesses is reputational harm.1
In addition, accidents that result in bodily injuries can be very expensive. The average cost for this kind of claim is $30,000.2 Not many small businesses can manage a cost like this without seeing a significant impact to their business.
With the right general liability policy and a
certificate of liability insurance proving you have coverage, you can feel confident knowing you’ve taken the necessary steps to protect your business from these types of claims.
