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Must-Read Guide for General Liability Insurance

by | Nov 12, 2020 | Business, Professionals

Read the following Q&A (it’ll only take 10 minutes, we promise) to find out what you need to know about general liability insurance and protecting your business. For starters: Is it expensive? (Nope.) Do LLCs need it? (Yep!) Is it required? (Sometimes.) And more.

What is General Liability Insurance?

General liability insurance, sometimes called commercial liability insurance, protects you and your company’s assets against third-party claims for bodily injury, personal injury and property damage that occurs on your business’s premises and/or is caused by your business’s operations or products. This commercial insurance type can also provide coverage for legal defense fees, court costs and settlements.

What Does General Liability Insurance Cover?

It covers third-party (e.g., customer, vendor) bodily injury and property damage that occurs on your business’s premises and/or is caused by your business’s operations or products. The commercial liability insurance can also provide coverage for defense and court costs if you are sued.

Does Commercial Liability Insurance Cover Theft?

No. The commercial liability insurance protects your business from claims resulting from injuries and property damage that happen to others while they are on your premises or are caused by your product. It does not cover your losses if your property is lost or stolen.

How Much Does General Liability Insurance Cost for a Small Business?

Since no two businesses are alike, the commercial liability insurance costs for a small business depend on several factors: the size of your business, your industry and location, how many people you employ and your claims history. Depending on risk and coverage limits, premiums range from $300 to $900 annually.

Is Commercial Liability Insurance Based on Payroll?

Most general liability insurance is based on your payroll. The rate is based on your type of business and is calculated per $1,000 of gross payroll. The rationale behind this is that the more people you employ the greater your risk of exposure.

Do You Need General Liability Insurance With an LLC?

While registering as an LLC separates personal assets from business assets, you still need commercial liability insurance to protect your company from third-party claims alleging your business caused property damage or bodily injury. Win or lose, court costs and legal fees can result in serious out-of-pocket expenses.

Does a Single Member LLC Need Insurance?

Even a single member LLC needs general liability insurance. Although your personal assets are protected, your company assets are vulnerable. Having commercial liability insurance is an inexpensive way to protect your business. If a claim is made against your company, the insurance company handles it so you don’t have to.

How Much Does Commercial Liability Insurance Cost?

Different businesses face different risks. Consequently, costs are based on several factors, including the size of your business, your industry and location, how many people you employ and your claims history. Depending on risk and coverage limits, premiums range from $300 to $900 annually.

Is General Liability Insurance Available in Florida?

Not only is general liability insurance available in Florida, it is required for most businesses. It provides protection from claims made against your business or your employees for personal injuries or property damage and helps pay the cost of defending yourself if you end up in court.

How Much is a Million Dollar General Liability Insurance Policy?

Again, premiums are based on risk. For example a general contractor is going to pay more than a consultant. Most one million dollar commercial liability insurance premiums range from $300 to $1,000 a year. Two million dollars worth of coverage averages $500 to $1,300 a year.

 

Conclusion

Here’s what can happen if you don’t have general liability insurance for your business. A customer falls and breaks an arm in your place of business and you wind up on the receiving end of a lawsuit. Or, maybe a fire starts in the office you rent and your landlord sues you to cover the repair costs; or one of your products injures a child. The possibilities are almost endless. Not only is being sued stressful, it disrupts your business and can cost tens of thousands of dollars to settle – or push you into bankruptcy.

That’s why it’s important to work with an insurance advisor, like the ones at JAISIN, who specialize in commercial liability insurance. They’ll develop a cost-effective plan specific to your needs, and advise you on how to manage your risks so you remain claim-free.

Commercial liability insurance is a small investment to make for the peace of mind and protection the correct policy provides. Get a quote or call JAISIN Insurance Solutions today to talk with one of our general liability insurance advisors.

President/CEO

Jason Albertson Bishara is the Founder and CEO of JAISIN Insurance Solutions. Mr. Bishara has almost 25 years of executive experience in financial services, including insurance, banking, and fintech industries, with an emphasis on Micro/Small Cap companies, Financial Advisors, and High-Net-Worth individuals.

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