Choosing the Perfect General Liability Insurance for Small Businesses

Did you know about 70 percent of small businesses in the U.S. are underinsured?

If your business is one of these, you’re leaving things to chance. The average small business is faced with multiple hazards, such as employee injuries and cyberattacks.

Some of these hazards can leave your business liable to the tune of hundreds of thousands of dollars. Fortunately, general liability insurance for small businesses like yours makes it easier to minimize your liabilities.

However, to ensure this coverage works for your business, it’s prudent to choose your provider wisely. In this article, we’re telling you how to make a perfect choice.

What Is General Liability Insurance?

The first step to finding the best small business insurance for general liability is to know what the policy covers.

General liability insurance is a commercial policy that provides coverage for a wide range of business risks. It takes care of claims of bodily injury and property damage.

For example, if a customer suffers a slip and fall accident in your store, they can sue your business for their injuries. If the business is liable, your general liability coverage provider will compensate them.

There are state-specific laws that require certain kinds of businesses to purchase a specific minimum amount of liability coverage before they can operate.

Understand Your Liability Coverage Needs

Before you start shopping for coverage, understand the liability risks your business faces. This is because every business has unique liability coverage needs.

If you’re an ecommerce business, for example, you likely don’t have premises liability risks. Customers don’t physically come to your commercial space. However, you handle customer data, which exposes you to cyber liability in case of a data breach.

If your business has both in-store and online operations, it’s exposed to both premises and cyber liability.

Having a good grasp of your liability risks helps you determine how much liability coverage you need to have, and what risks the policy must cover.

Find the Right Insurance Provider

To get the best small business insurance coverage, you need to buy from the right insurance providers. These companies aren’t created equal. Most have a bad reputation for frustrating clients in their time of need.

Do extensive market research to zero in on the most reputable commercial insurance carriers, like this insurance company.

Try to find providers that have products designed for businesses in your industry. If you’re a medical practice, for example, an insurance company that has a custom insurance policy for medical practices will have a better grasp of your needs and challenges.

Get quotes from multiple lenders. This allows you to compare rates and find coverage that suits your budget.

Lastly, don’t purchase the bare minimum coverage. Ensure your coverage reflects your business’s level of risk exposure.

General Liability Insurance for Small Businesses Is a Must Have

Your small business faces several liability risks. Buying insurance is one way to manage those risks. In particular, general liability insurance for small businesses goes a long way.

You might need to purchase more policies, such as workers compensation insurance, if your business calls for it. But for the most part, general liability coverage will protect your business.

Explore our blog for more commercial insurance advice.

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