As a small business owner, you know that owning and running a business is no small feat. You must juggle multiple tasks and ensure all the pieces are in place to keep your company running smoothly. One of those pieces is general liability insurance. This insurance covers bodily injury claims, property damage claims, and more.
Without this insurance, your company could face hefty fees- that would need to be paid out of pocket. Here are a few factors small business owners should consider when shopping for general liability insurance.
Factors Small Business Owners Should Look for in a General Liability Cover
- Coverage Limits – The first thing you should consider when looking at general liability policies is the coverage limits. Different policies offer different levels of coverage, so it’s important to understand what kind of protection you need before selecting. Ensure the policy covers any potential costs arising from an incident or lawsuit related to your business operations.
- Exclusions – It’s also important to understand what risks are not covered by your policy. Every policy has exclusions, so be sure to read through them carefully, so you know exactly what your policy does and doesn’t cover. That way, if something that isn’t covered by the policy happens, you can be prepared with other options for handling it, perhaps protecting yourself financially if necessary.
- Additional Insureds – If you work with contractors or other third-party vendors who might be liable for damages caused during their work for your business, consider adding them as “additional insureds” on your general liability policy. This way, they’ll have some coverage in case of an incident or lawsuit involving them while working for your company. This additional layer of protection could save you a lot of money if something happens, and they are held liable for damages caused by their work-related activities on behalf of your business.
- Deductibles – When comparing different policies, make sure you understand how deductible amounts will affect premiums. That includes the policy’s overall cost over time (both in terms of monthly premiums and out-of-pocket costs). Generally, higher deductibles mean lower premiums but higher out-of-pocket costs if an incident requires payment under the policy. Lower deductibles, on the other hand, mean higher premiums but lower out-of-pocket costs if an incident requires payment under the policy.
Get a General Liability Cover
There are plenty of options for finding the right general liability insurance for small businesses—so shop around. Make sure you get quotes from multiple providers to compare rates and offerings side by side before selecting one that fits your needs best.
General liability insurance is a must-have for any small business owner. However, not all policies are created equal. When shopping around for a new general liability insurance plan, consider all factors, including coverage limits, exclusions, professional liabilities, additional insureds, and deductibles. Only then will you find the perfect plan that offers adequate protection from lawsuits and fits within your budget constraints. Get a general liability cover and protect your business today.