How Much Does Liability Insurance Cost?

We know many people wonder, “How much is liability insurance for a business?” The answer is that it’s different depending on what you do. In fact, several factors influence your company’s cost, like your:

Number of employees: The more workers you have, the more insurance protection you’ll need, which can increases your rate.
Exposure to risk: Every business faces different levels of risk. For instance, construction workers often face more risk than retail workers.
Business’ size: In many cases, larger businesses with higher sales or a large operating space can face more risk and have higher premiums.

Keep in mind that you may also pay for liability insurance on a monthly basis, and that this protection is also known as general liability and commercial liability coverage.

To learn more, get a quote from us today. We can help you understand what minimum coverage limits are best for you. From there, we can help customize your liability insurance to fit your business’ needs. We can also help you figure out the price for different types of coverage for your specific business, like your cost of car insurance.

Average Liability Insurance Costs by Coverage

General Liability Insurance

General liability insurance helps cover claims of:

Bodily injury
Property damage
Advertising injury

Similar to other business liability coverages, general liability insurance costs can depend on a variety of factors like your type of business, location and insurance claim history.

Professional Liability Insurance

Professional liability insurance helps cover claims of negligent acts, errors or omissions in the services you provide to a customer.

Your professional liability insurance cost can depend on factors like your coverage limits, years in business and claims history. This coverage is also known as errors and omissions insurance.

Workers’ Compensation Insurance

If your employees have a work-related injury or illness, workers’ compensation insurance can help pay for their:

Medical expenses
Lost wages
Disability benefits
Ongoing care costs

Your workers compensation insurance cost can depend on:

The number of employees you have
The types of work done by your employees
Your state’s requirements

Commercial Auto Insurance

Commercial auto insurance can help pay for the costs of auto accidents involving vehicles that your business owns. Some factors that influence how much you’ll pay for this coverage include:

Your vehicle’s type and size
Each driver’s experience level
The number of company cars you’re insuring
Your deductible

To learn more about average car insurance rates for small businesses and the cost of car insurance for you, get a quote from us today.

Factors That Impact Liability Insurance Costs

Whether you need general liability insurance, professional liability insurance or workers’ compensation, there are a number of factors that impact your small business insurance costs, like your:

Industry: Your exposure to risk influences how much you’ll pay for your premium. For instance, landscapers might face more risk than accountants for certain liability policies, like general liability insurance.
Location: Your geographical location can impact your insurance premium. For example, areas with higher populations often have an increased risk of bodily injury. This means certain zip codes and cities can have higher rates.
Deductible: Higher deductibles can give you a lower premium than policies with lower deductibles.
Years in business: The experience you have can factor into how much you pay for an insurance premium.

Keep in mind that your credit score can also impact your insurance costs, like commercial auto insurance rates.

3 Tips for Saving on Liability Insurance Costs

You can save on your liability insurance costs by:

Bundling your insurance policies: With a Business Owner’s Policy (BOP) from us, you can bundle your business income, general liability and commercial property insurance into one convenient policy. You can also add other insurance coverages, like a data breach policy.
Choosing appropriate insurance deductibles: You can lower your premium by choosing higher deductibles, but you may have to pay more out of pocket if you file a claim.
Managing your risk: If you run a high risk business, your premium will increase. One way business owners can help minimize their company’s risk is by having employees take a training and safety program. Depending on the company you work with, these programs can help reduce your employees’ injuries and accidents.

To learn more, get a quote from us today. We’re an insurance company you can trust. In fact, we’ve been helping our customers learn how to get liability insurance for a small business for over 200 years.