cheapest business liability insurance

Commercial general liability insurance is a crucial component of business risk management, providing financial protection in the event of harm to individuals or their property, or allegations of such harm. This form of insurance is essential for businesses of all sizes, ranging from sole proprietors to large corporations. Major commercial insurance companies offer general liability insurance either as a standalone policy or as part of a comprehensive business owner’s policy.

For small-business owners seeking reliable general liability insurance, several reputable providers stand out. Each of these providers has its unique strengths and offerings:

1. Chubb: Business Owner’s Policy Specialist

• Rating: 5.0 NerdWallet Rating
• Chubb’s Business Owner’s Policy (BOP) is accessible online for businesses with less than $1 million in revenue. Apart from business interruption insurance, Chubb includes extra expense coverage, providing valuable support during recovery from accidents or disasters. Notably, Chubb has a lower-than-expected number of complaints about general liability insurance, considering its market share.

1. Next Insurance: Seamless Online General Liability Solutions

• Rating: 5.0 NerdWallet Rating
• Next Insurance offers a streamlined online experience, allowing businesses to obtain quotes and purchase general liability insurance rapidly. With policies starting at $11 per month, Next Insurance includes product liability coverage, making it an attractive option for small businesses needing quick and affordable coverage.

1. Thimble: Event-Specific Liability Coverage

• Rating: 4.0 NerdWallet Rating
• Thimble caters to businesses requiring liability coverage for specific events or temporary periods. Offering flexibility, Thimble provides monthly or event-specific general liability insurance, making it ideal for businesses seeking coverage to meet contractual obligations.

1. Nationwide: Industry-Specific Insurance Leader

• Rating: 4.5 NerdWallet Rating
• Recognized for customer satisfaction in J.D. Power’s 2023 Small Commercial Insurance Study, Nationwide excels in industry-specific business insurance. In addition to general liability coverage, Nationwide offers specialty options like surety and fidelity bonds, catering to the unique needs of construction companies and other specialized firms.

1. The Hartford: Personalized Coverage with Business Insurance Agents

• Rating: 5.0 NerdWallet Rating
• The Hartford distinguishes itself by emphasizing the role of business insurance agents. These professionals take the time to understand your company’s needs and can effectively shop around for the coverage that suits you. For those who prefer a personalized approach, The Hartford is a top choice.

1. Hiscox: Comprehensive Coverage for Professional Liability

• Rating: 4.0 NerdWallet Rating
• Hiscox stands out for businesses needing not only general liability insurance but also professional liability coverage. Particularly crucial for businesses providing fee-based advice to clients, Hiscox’s policies cover work conducted globally, offering a comprehensive solution for professional liability.

Understanding how general liability insurance operates is crucial for businesses. This type of insurance can provide financial assistance in cases of third-party bodily injuries on your property, third-party property damage caused by your business, and personal and advertising injury. It covers legal costs and medical payments for injuries on your property, offering protection against claims related to products your business manufactures, delivers, or sells.

While general liability insurance is not legally mandated, NerdWallet recommends it for all businesses as a fundamental level of protection against potential lawsuits. Landlords, clients, or contractors may require it as a prerequisite for collaboration. Having a policy in place when an accident occurs is essential for coverage, and some policies may even offer retroactive protection.

Businesses should consider a business owner’s policy (BOP) when seeking a comprehensive insurance package that includes general liability, business property, and business income insurance. This is particularly relevant for businesses with rented or owned space, inventory, or expensive equipment, where a disaster or accident could lead to business closure.

Costs for general liability insurance can vary widely based on factors such as the nature of the business, location, number of employees, and prior claims history. The median premium is approximately $42 per month, but actual costs may differ significantly. Understanding policy limits, including per-occurrence and aggregate limits, is crucial, as these determine the maximum payout for a single claim and the total amount for a year.

While general liability insurance provides essential coverage, businesses may require additional types of insurance to address specific risks. Professional liability insurance is recommended for businesses offering services, protecting against claims of negligence or mistakes resulting in harm. Workers’ compensation insurance is essential for covering injuries suffered by employees on the job, as general liability policies typically exclude coverage for employee injuries.

Frequently Asked Questions

What is General Liability Insurance?

General liability insurance stands as a protective shield for your business in the event that you, or your employees, face allegations of causing harm to a third party, damaging their property, or tarnishing their reputation.

What falls under the coverage of General Liability Insurance?

General liability insurance encompasses the financial protection against legal expenses and settlement costs arising from a third party filing a lawsuit for bodily injury, property damage, copyright infringement, libel, or slander. Additionally, it extends to covering medical expenses for individuals injured on your premises or during the course of your business operations.

What is the typical cost of General Liability Insurance?

The average cost of general liability insurance is approximately $42 per month, as reported by the insurance marketplace Insureon. However, businesses classified as low-risk may secure more affordable coverage; for instance, policies from Next can commence at $11 per month, while Thimble offers policies starting at $17 per month, according to information provided by these companies.

Is General Liability Insurance a necessity for your business?

In essence, every business is advised to obtain general liability insurance. While it may not be a legal requirement, the entity that engages your services as a contractor, your clients, or even your landlord might mandate the necessity of having it in place.