Small Business Liability Insurance Requirements – General liability insurance helps protect your small business from claims that it caused bodily injury or damage to others. Without general liability coverage, you will have to pay for these claims out of pocket. General liability insurance (GLI) can be called many different things, such as business liability insurance, commercial general liability insurance, or comprehensive general liability (CGL).
Just remember that general liability insurance costs are different for everyone because every business is unique. Factors that may determine these costs include:
Small Business Liability Insurance Requirements
Did you know that four out of 10 small business owners are likely to experience a property or general liability claim in the next 10 years?
What Does Commercial General Liability (cgl) Insurance Cover?
Claims range from unexpected incidents, such as a burglary, to unexpected accidents, such as a customer being injured after slipping and falling.
It’s a question we hear often: “Does my small business need general liability insurance?” Chances are, the answer is yes. With general liability insurance coverage, you have protection from claims from:
If a customer injures themselves in your place of business, this policy can help cover their medical bills.
Employees sometimes damage customers’ property while delivering products or services. Your GL policy can help pay for the damage.
Professional Liability Insurance Cost
General liability insurance policies can help cover malicious prosecution, slander, libel, wrongful eviction and violation of a person’s privacy.
If your rental property is damaged by fire, lightning or explosion, your general liability policy can help pay for repairs.
You can save money on your general liability insurance costs by bundling, such as a Business Owner’s Policy (BOP). It combines general liability coverage with commercial property insurance and business income insurance.
Liability insurance coverage helps protect you against costly general liability claims that can occur during normal business situations, such as:
Small Business Insurance Costs
You also need this coverage if your customers ask for it. Many customers want to confirm that you have general liability coverage before they sign a contract with your business. You can prove that you have general liability insurance with a certificate of liability insurance.
General liability insurance does not cover every type of claim. Depending on your small business, you may need different types of coverage to give your business more protection. A general liability insurance policy does not cover commercial auto accidents, employee injuries or illnesses, damage to your business property, professional mistakes or errors, intentional misconduct or illegal acts, or any claims that cost more than your liability limits. It also doesn’t cover claims related to data breaches or lost income if your business can’t open due to covered property damage.
State laws do not usually require business owners to carry general liability insurance. But it is still a good idea to have this liability insurance coverage. If a customer sues your business and you don’t have coverage, it can put your business’s finances and your personal assets at risk.
It is important to understand your state’s general liability insurance laws. Work with a local insurance agency or our dedicated small business insurance team to help you choose the right business liability insurance.
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Although it is not required by state law for LLCs to carry business liability insurance, it is a good idea to get your business protected against everyday risks. Without it, you’ll have to pay out of pocket for claims against your business, which can be expensive. Talk to an insurance agent or get an online quote today and see how we can help protect your LLC.
If you’re ready to get a general liability quote, you’ll want to have the right information handy. This includes:
Not all insurance companies are the same. It is important to work with someone you can trust. We have over 200 years of experience helping small business owners protect their companies with coverages such as general liability insurance.
Whether you’re looking for a quote, trying to understand general liability class codes or need help filing a claim, we’ve got your back.
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To learn more, start a free quote or get your general liability insurance online. We can also help you obtain other essential business coverages, such as commercial property insurance and commercial auto insurance.
1 Premium amount presented is based on monthly premium paid by The Hartford’s Small Business customers between 1/1/21 and 12/31/21 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.
2 The Hartford, “The Hartford Reports: More than 40 percent of small businesses will experience a claim in the next 10 years”
The Hartford is not liable for damages related to the use of any information on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs, as this information is intended to be educational in nature.
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The information on this page should not be considered specific legal, HR, financial or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage provisions will be subject to the policy language, and any potential claim payment will be determined after a claim investigation.
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be provided by one or more of the property and casualty insurance companies of The Hartford Financial Services Group, Inc.
The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, CT. For additional details, please read The Hartford’s Legal Notice.To run a successful business, you have to take some risks. But, taking risk doesn’t mean you don’t do a little small business risk management to keep your company from losing money. While you can’t avoid every threat, some types of business insurance can help lessen the financial blow when the unexpected happens.
If you are affected by a natural disaster or other declared emergency, other assistance may be available. For more information, download our free guide to navigating disasters and emergencies.
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Business insurance coverage can protect a company from financial losses related to qualifying events, such as property damage, injury or lost business income. Like home insurance or auto insurance, insurance providers reimburse you for some or all of your losses if your business is affected by covered events.
You can choose different types of business insurance based on your industry and needs. The insurance you sign up for determines what potential events your business is protected against.
Don’t wait to find out what insurance you need until after you suffer a loss. Avoid a costly disaster by protecting your business early.
Before signing up for any available insurance, assess your business’s main risk factors. Then, understand the basics of what each type of small business insurance covers.
General Liability Insurance Quote
Take a look at these nine types of small business insurance you need to protect your company.
General liability (GL) insurance protects your business when faced with property damage, bodily injury or personal injury claims caused by operations. Mistakes in your business operations can physically harm someone’s property, damage someone’s reputation or interfere with privacy.
For example, you have a construction company. If the business damaged a customer’s property, general liability insurance would cover the cost of the damage.
Remember that general liability insurance does not cover every type of claim. Check with insurance companies to learn what claims they cover.
Product Liability Insurance For Small Business
You can get general liability insurance on your own. Or you can bundle it with property insurance under a business owner policy insurance plan (explained later).
Who should get this type of insurance? Consider protecting your business with general liability insurance if you see clients in person, have access to their properties, or represent their businesses.
Errors and omissions (E&O) insurance, or professional liability insurance, covers customer claims against your business. If you provide a service that does not meet the promised results, a customer may sue you.
Who should get this type of insurance? You should have E&O insurance if you provide recommendations, guidance, advice or services. Common business owners who have this type of business insurance coverage include doctors, lawyers, accountants and event planners.
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A business interruption insurance, or business income insurance, plan is coverage that replaces lost income when disasters (such as floods) occur.
Generally, interruption insurance is part of a business owner’s policy insurance. If you’re interested in defending your company against disasters, talk to insurers to see how much interruption coverage is available.
Who should get this type of insurance? Business owners who have physical business locations typically opt for business interruption insurance.
Cyber insurance is coverage that can help protect business owners from cyber attacks and hacking threats. Remember that it does not prevent cyber attacks – it only helps you with the costs if you fall victim to them.
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Who should get this type of insurance? Businesses that deal with any type of personally identifiable information (PII) may want to consider cyber insurance.
Workers’ compensation is a state-mandated insurance that protects businesses when an employee becomes ill or injured on the job. Most states require businesses to have this type of business insurance.
Generally, you can get workers compensation insurance through a private insurance company. However, you have to get the workers accounting via a state fund if you
