General Liability Insurance

What Does General Liability Insurance Cost?

The cost of purchasing general liability insurance is based on a number of factors including:

• Industry.
• Years in business.
• Graphical location.
• Claim history.
• Number of employees.
• Total annual revenue.
• Replacement cost of building, contents, and equipment.

To get the best deal on GL insurance, consider purchasing it in a package like a business owners policy or commercial package policy. These types of packages are tailored for specific industries and business sizes and have optional lines of coverage, such as business interruption coverage, that can be added at discounted costs. By bundling policies, insurance companies save money and so do policyholders.

What are Common General Liability Claims?

The first step to take when you think you have a claim is to call your agent. Your agent will help you organize your information and guide you through calling the insurance carrier who will process your claim. The following are the top five property and liability claims for small businesses as reported by The Hartford¹ (2015):

1. Burglary and theft
1. 20% of claims.
2. Average cost to business owner: $8,000.
2. Water and freezing damage
1. 15% of claims.
2. Average cost to business owner: $17,000.
3. Wind and hail damage
1. 15% of claims.
2. Average cost to business owner: $26,000.
4. Fire
1. 10% of claims.
2. Average cost to business owner: $35,000.
5. Customer slip and fall
1. 10% of claims.
2. Average cost to business owner: $20,000.

According to The Hartford study, more than 40 percent of small businesses will submit a claim within the next 10 years. Will your business be covered? The Insurance Shop specializes in designing small businesses insurance solutions with the right coverage for the right price. Let us guide you through identifying your risks, and the coverages you need to mitigate those risks, so your business can have its best chance at success.

¹The Hartford Newsroom

How Can I Reduce my Risk?

Avoiding general liability risks in your business starts from the ground-up, literally. If your business is open to any third-party, that is anyone who is not an employee, then you need to assure that it is a safe and accessible space. Start with the floor, is it level? Are there tears, ripples or holes in the carpet? These are all examples of risks that could cause a person to trip and fall on your premises. With some basic common sense and a safety-first mindset, you can mitigate a lot of liability risk. Here are some tips to get started.

• Create safety checklists, then follow them!
• Perform regular inspections, do daily, weekly and/or monthly inspections of property to assure it is in top condition.
• Provide appropriate supervision, assure employees are following safety procedures, and provide safety training.

Frequently Asked Questions

1. Are there other names for general liability insurance?

Yes, some insurance companies refer to GL as commercial liability insurance or, simply, CGL, for commercial general liability.

2. If I have professional liability insurance do I need general liability as well?

Yes. While both coverages apply to third-party claims, there are big differences between professional and general liability insurances. While all businesses should have general liability insurance, not everyone will need professional liability. Professional liability, also known as errors and omissions, is meant to cover services, such as design or medical services.

3. Does my GL insurance cover my products and completed work?

Most GL policies include some degree of coverage for products and completed work. It is best to discuss your needs thoroughly with your agent to determine which kind and how much liability coverage your business needs.

4. Does general liability coverage include personal and advertising injury coverage?

Many GL policies cover lawsuits over advertising injuries such as copyright infringement, unlawful eviction or privacy violations. This coverage is one of the few exceptions in GL where the coverage isn’t for physical injury.