General liability insurance is a policy tailored to cover accidents concerning non-professional negligence that nearly any business may face day to day. This is a common policy for businesses across industries, but it is important to note that the cost of this insurance may vary depending on your business’ needs and other factors.
On average, general liability insurance is relatively affordable. These premiums can vary, however, depending on your:
Size of the Business
Larger businesses tend to face higher risks when it comes to general liability. A business with multiple locations, for example, may face higher risks of injuries than a business with a single property. The more business your company does, the more you may also risk related lawsuits.
Different industries provide varying levels of risk when it comes to general liability insurance. If you have a physical location that provides a high risk of industry, you may pay more for general liability insurance. Certain industries and products may also present different risk levels for lawsuits from clients and third parties.
As you might expect, the more coverage you purchase, the more you may pay for general liability insurance. This doesn’t mean that it is more cost effective to go with a less amount of coverage, however. Going with less coverage could mean risking expensive accidents and lawsuits out of pocket when your policy reaches its limit. Speak with an insurance agent about insuring your business with the right amount of coverage.
History of Claims
If your business has a history of accidents or claims, you may pay higher amounts for general liability insurance. This is because insurers will see past claims as a sign that you are likely to file another claim in the future, so they may increase your premiums in order to offset the risk.
The main way you can avoid claims is by making your business’ operations and locations as safe as possible so as to avoid common injuries and accidents.
Credit of the Insured
As with any other insurance policy, your credit can affect how much you pay for general liability insurance. If the policyholder has a poor credit score, they will generally pay more for insurance. It is important for businessowners to have a high credit score in order to save money on important insurance policies.
You can also save money by bundling general liability insurance with other coverages, such as in a business owners policy.
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