YOU ASK:

How much does general liability insurance cost?

WE ANSWER:

General liability insurance will cost from around $400 to $1,500 in annual premiums. Premiums will vary from one business or practice to another.

Please note that insurance premiums are based on the risk factors a business or an organization presents. The insurance company will look into the type of business you have, what products and/or services your company provides and the risks such operations presents in terms of liability.

Another area on how risk is computed is based on the size of your business. This is usually measured through the square footage of your business or through the business' payroll amounts.

Thus, the insurance company will look into the following risk factors, which indicate the potential of a liability lawsuit against your business or practice:

  • Risk of bodily injury. This includes the risks to customers, visitors and even trespassers. Accidents can happen in your workplace. An employee or customer may get hurt while in your business premises - one can slip or have something fall down on his head. Thus, high traffic businesses (such as restaurants) will be charged higher premiums due to an increased risk of bodily injury. The general liability insurance will only cover for liability, even when there is negligence involved (such as a failure to put a "Wet Floor" sign while mopping the floor).
  • Risk of property damage. This includes damage to your business property, as well as damage to third party property (such as a brick falling into a customer's car).
  • Risk on Personal and Advertising factors. This measures the level of risk you or your business presents of being sued due to libel, fraud or a false claim in your advertising. This component of the general liability insurance coverage will also pay for legal fees in a lawsuit you face due to alleged trademark or copyright violations, as well as copying slogans or taglines of another business. Thus, if your business is into a lot of advertising, your general liability insurance premiums may be higher than a business that rarely advertises.

The best thing to do is to ask for a visit from your insurance agent or from a representative from an insurance company to give you a quote as to how much general liability insurance will cost for your business.

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