General Liability Insurance Cost
General liability insurance cost comparisons can direct you to affordable coverage for your large company or small business. No matter what type of business you're in, you're vulnerable to lawsuits. No one likes to think about being sued by a customer, contractor or vendor, or about accidentally injuring a guest or bystander during the work day. However, accidents can occur under the safest of conditions, and the results can be costly.
Your business general liability insurance cost may seem minimal compared to the expenses involved in a lawsuit. Fees for your attorney and court costs can lead to serious financial losses -- even if no damages are awarded to the plaintiff. As you compare rates and collect quotes from general liability insurance carriers in your area, consider the financial risks you would be taking if you didn't have commercial liabilities coverage.
Long-term Cost of General Liability Insurance
In the short term, your general liability insurance cost may seem high compared to the price you would pay for a business owners policy, or BOP. A BOP packages your property and liability plans into one bundle, reducing your costs. However, this packaged insurance may not go very far if you're involved in a major complaint. In general, most businesses can increase their security by investing in general liability insurance, which is aimed at protecting companies against liability exposures.
Over time, you'll see that general liability insurance is a better value, even if the general liability insurance cost is higher. When you have incidents at work or encounter risks, you'll appreciate having a policy that doesn't impose a blanket solution on your concerns. Legal risks are a specialized area in the insurance industry, and you're more likely to have satisfactory coverage when those risks are covered by a policy that targets your needs.
If you're involved in a lawsuit in which the plaintiff is awarded significant damages, and you don't have a general commercial policy, you may end up being held responsible for significantly more money than a bundled plan will cover. To avoid this possibility, invest in a policy that may cost more in the short term, but gives you more value in the long run. The general liability insurance cost will seem insignificant compared to the amount you can save by having adequate protection.
Lowering General Liability Insurance Cost
To lower the cost of insuring your commercial enterprise, talk with your provider about how you can implement risk management strategies to keep your business safe. The companies that insure businesses have a vested interest in reducing your risks. Increased safety in your workplace translates into fewer claims, which means that your provider has to pay fewer settlements.
Some providers will conduct a loss control or safety review of your facility to help you tighten your production safety standards and risk management procedures. Training sessions and educational materials for staff may also be available. The fewer claims you have to file, the lower the cost of your coverage will be. Many providers offer discounts to businesses that have not filed any claims within a certain period of time .
Some factors that affect general liability insurance cost are beyond your control. The size of your organization or the location of your building can affect the amount you'll pay. The type of product or service you provide and the risks involved in your routine operations may have an impact on cost, as well.
Although you can't change all of the factors that influence your general liability insurance cost, you can do everything in your power to address situations that expose you to liabilities. Some of these measures are a matter of common sense, but during the course of the work day, as your staff gets busy, it can be easy to forget basic steps like cleaning up spills immediately or replacing broken light bulbs. Injuries due to slipping and falling on spilled liquids are one of the most common causes of claims -- they are also one of the easiest incidents to prevent.
Finding the Right Policy
Every business has different needs when it comes to protection against liabilities. The contract that protects a company in manufacturing may have completely different wording and terms than the contract written for a restaurant or an architectural firm. To ensure that you have the right protection for your business, work closely with an agent or broker who can match you with the right insurer.
When you find protection that suits the nature of your work, your general liability insurance cost may seem very reasonable. If you have to pay a bit more for a plan that's tailored to your needs, you'll realize that the value of this specialized coverage is worth the extra cost. Protecting your financial assets is a vital part of your company's loss control strategy.