General Liability Insurance Rates
General liability insurance rates may vary according to the level of risk involved in your business, your history of filing claims and the overall performance of your company. By comparing quotes from a number of general liability insurance providers, your company has a better chance of finding the lowest rates that an insurer can offer. Your group may also be eligible for discounts that could lower your costs even further.
General liability insurance protects your company against potential losses due to lawsuits filed by customers, vendors, or other members of the public. In today's legal climate, filing lawsuits against businesses has become commonplace, making it more challenging to go about your daily operations. When you can secure affordable general liability insurance rates, protecting yourself against legal damages becomes an attainable goal. Take advantage of the resources on this website to compare quotes from a number of insurers in your area.
Determining Your General Liability Rates
When you apply for general liability insurance estimates, an insurance provider will gather specific information about your company in order to determine your general liability insurance rates. The amount of risk your employees take in your day-to-day operations is a factor in determining your rates. If you operate a retail store with a high volume of customers, or a machine shop where your staff is exposed to machinery, you may have higher rates than a small business with very little foot traffic and no potentially hazardous equipment on the premises.
Your company's size is factored into your rates. Smaller businesses may have lower rates than organizations that perform comparable work. Your company's earnings, its financial performance and stability and its history of losses in the past may also be taken into account when determining how much you'll pay for your coverage. Older companies with a solid financial history may be perceived as better risks than newer businesses that are just getting established.
Your business's location can make a difference in your costs. Factors such as the risks involved with doing business in a certain area of your community are typically determined through statistics about the number of claims filed by commercial enterprises in those areas. Having operations in multiple states may affect your general liability insurance rates, as well.
Extending Your General Liability Coverage
The amount of general liability insurance coverage that you purchase will affect the cost of your policy. Increasingly, more businesses are choosing to raise the amount of insurance that they buy due to the rising incidence of lawsuits. Higher costs of medical care and legal fees have also caused many business owners to pay higher general liability insurance rates.
In some states, commercial lawsuits are decided overwhelmingly in favor of the plaintiff. In these areas, paying higher general liability insurance rates for more coverage makes sense for the sake of protecting your organization. Every policy includes a maximum limit that the insurer will cover per claim or per policy period. This maximum figure should be included in your original quote. Review this figure carefully to make sure that it adequately covers your potential losses.
In the event of a serious injury, your company may be held liable for acute medical care, rehabilitation, physical therapy and other costs. Loss of wages may also be included in the damages that a plaintiff receives if your group is determined to be at fault. If the damages awarded to the plaintiff exceed your policy's maximum, you will be responsible for the additional amount.
An umbrella plan extends your protection beyond the maximum limit stated in your contract. General liability insurance rates may be higher when you extend your coverage; however, these additional costs may be minimal compared to the expenses of a major lawsuit. If your maximum limit falls short of the damages, your umbrella plan makes up the difference. Talk with your legal counsel about the amount of protection that's realistic for your line of business.
Reducing Your Costs
Preventing accidents and avoiding potentially damaging actions are among the most effective ways to reduce your general liability insurance rates. The more measures you take to secure yourselves in advance, the lower your chances of having to file a claim. When you maintain a strong claims history, you may qualify for a discount on the costs of insuring your business. Ask your insurer about loss control programs or employee training that can help you and your staff minimize your risks.
Lowering your general liability insurance rates helps you keep the costs of legal protection within a manageable range. Contact multiple providers online to request information, compare estimates and find out about any discounts that may apply to your policy. When you're searching for coverage against liabilities, you can't afford not to have enough protection to secure your company's financial future.