3 Things You Need to Know About General Business Liability Coverage
A major piece of insurance often overlooked by businesses just starting up is general business liability coverage even though the insurance covers both property damage and bodily injury liability for your business. Here are three things you need to know about general business liability insurance.
1. It’s cheaper than a claim
Our society is increasingly litigious and the legal fees associated with defending your business against a are going up not down. Factor in the actual settlements if you loose, and the outcome could break your business.
For most businesses, however, the cost for general business liability insurance premiums will run in the range of $750 to $2,000, which will depend on your industry or kind of business and the amount of coverage that you require.
2. Do your research
Many businesses are at higher risk for claims, like building trades. Do you know where your business rates on the risk scale? If not, do your homework to ensure that you carry enough general business liability coverage.
For example, if you are sued for $150,000 in medical fees and $100,000 for costs, and this is the average claim in your industry, you pay what your policy doesn’t cover. If your coverage is at $100,000 per claim, your business will be on the hook for the other $150,000.
3. Location, Location, Location
There are many factors that determine the amount of general business liability insurance you will need in addition to your industry or type of business risk. In 2010, the state of New Jersey was on the top 10 list of America’s most litigious states.
So if you are doing business in New Jersey, chances are that you need general business liability insurance; and if you carry it, review your coverage needs with your licensed insurance broker.