A lot of things play the consideration factor if you are a business owner regardless of the height of the success of your business as well as the type of goods or services that you offer. One of the things that get ignored is the insurance ‘liability’.
It is very crucial to consider this type of insurance when making a budget for your business finances.
If you are working on your budget, one of the key questions that would cross your mind is; how much does general liability cost a business owner? The response to this particular question comes in different forms and we will aid you in getting a clearer picture of everything here.
Let’s look at what liability insurance means:
What is General Liability Insurance?
Liability insurance is a secure way to ensure that your company or business is protected in the case of misfortunes or accidents. There are various types of liability insurance however general insurance is the most advisable way to know that you are covered.
Liability insurance covers misfortunes such as personal injury claims, bodily injury claims, and property damage. Failure to pay attention to such things may result in causing your business to be a bit shaky or hurt.
With accidents being something that cannot be written off at workplaces, it is important to have liability insurance. It’s very needed to cover your business beneath false and true claims – meaning liability insurance can just be the right one to save your business in a time of false claims and limit the damage from real ones.
Most often, general liability insurance schemes make provisions to cover the cost of third-party lawsuits from minor accidents and property damage for small businesses.
What Should You Be Paying for General Liability Insurance?
Many factors come to play when trying to get a general liability insurance plan. Some of such factors are listed below:
- Business Location
- Number of Employees
- Type of Business
- Risks The Your Business Is Associated With (construction jobs, like roofers or electricians, have a lot more risk associated with their work than, say, an office administrator with a desk job).
In the new world that we find ourselves, businesses and their owners can be easily sued for pieces of stuff they have no idea of or they have not done. Lawsuits such as slander, liber, and property damages are now becoming common day in and out.
Most of the general liability insurance does make provisions for moments like that.
Eventually, you ought to be paying for risk protection should a mishap occur, or you want inclusion if somebody somehow managed to sue your business. This sum ought to mirror the size of your business and interests, as there’s a nobody-size way to deal with a risk protection installment plan.
How Much Does It Cost?
As earlier stated, many factors come to play when talking about the cost of liability insurance plans. Monthly payments can range anywhere from as low as $27 a month for very small, relatively risk-free businesses to thousands of dollars a month for bigger ones – that could also differ from state to state.
According to the Small Business Association in their pricing list, the average cost of general liability insurance runs on an approximation of $60 to $170 per month or annual costs of $750 to $2,000.
When you are a business owner with less than 10 employees working for you, the average cost of insurance is usually around $30 per month. With a figure around these amounts, be rest assured you will get a better liability insurance offer.
The nature of your business and factors surrounding it play a key role in determining the price of general insurance liability should you go wanting one. Such a factor goes into specific coverage.
Many offers are prepared for businesses, so the cost for one business when insuring will be different from the other. It is very crucial to make detailed research before jumping into getting the liability insurance else you did be spending huge on something you could have gotten affordably.
Here are the 5 key areas to look into when looking into business insurance.
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