General liability insurance is designed to protect a business from claims concerning bodily injury, property damage and advertising injury. It's a crucial policy for any business to have, but many businessowners worry about the expense.

Understanding what influences your general liability insurance rates can help you keep those rates low. On average, general liability on its own costs about $53 a month. This is relatively affordable for insurance, but it often comes in bundles with other important policies.

Factors That Influence General Liability Rates

Location

Different states, and areas within those states, charge differently for general liability insurance. This is due to general costs, medical costs in the area, population and the number of claims that usually occur in the area.

Size Of The Business

Larger businesses tend to pay more for general liability insurance. This is because the more locations, clients and employees means higher risks when it comes to accidents and lawsuits.

Industry

The industry of the business can also impact general liability insurance costs. Certain industries are at higher risk of liability claims. Businesses that host guests, manufacture equipment and conducts other high-risk activities tend to pay more for general liability insurance.

Coverage Limits

As with other types of insurance, general liability premiums vary depending on the amount of coverage. Most of these policies come in millions, starting at $1 million in coverage for claims per policy term. But every business is different. Your business may need different liability limits than the business across from you.

Deductible

A lower deductible generally means higher insurance premiums. You can raise your general liability insurance's deductible in exchange for lower monthly premiums, but this also means paying more out of pocket after a claim before receiving compensation.

Bundling And Discounts

You can often save money by bundling general liability with other crucial coverages. A business owners policy combines general liability and property damage insurance into one comprehensive policy for small businesses. This policy can also be adjusted to add coverages such as professional liability or Directors and Officers insurance.

Be sure to ask your Dave Millet Insurance agent about discounts your business may qualify for. Although business insurance can grow to be expensive, going without is even more of a risk and can result in thousands or even millions of collars in lawsuits and other accidents.

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