When insuring your business, you will likely need general liability coverage to stay covered against third-party injury and property damage claims, and related expenses. Many business owners, especially those just starting, assume that all insurance policies are the same and that getting coverage for all businesses is the same.
Obtaining good coverage will require attention to detail and understanding of what such a policy can do for your business. As such, here are four important things to keep in mind while buying general liability insurance.
The type of your business will help determine how much coverage you need. For instance, a construction business will require much more coverage than a flower shop.
There are liabilities in every business, but these can vary even between two nearly identical companies. Insurance providers will need specific details of your business to provide a quote, including how long your business has been in operation, your experience level and history in the industry if you are starting a new venture, and what kind of operations or services your business will be conducting, providing, etc. It is always helpful to research or asks your agent to find similar coverages that other businesses in the industry have taken.
Understanding the policy exclusions in the coverage quote you receive will help you know what types of liabilities are covered. There will always be some exclusions in every liability policy. However, make sure to choose policies where the policy exclusions are not pertinent to your business. On the other hand, policy exclusions will also let you know if you need any additional insurance to safeguard your business. For instance, if alcohol sales are a part of your business, you must purchase a liquor liability policy to receive comprehensive liability protection.
Have an independent agent sort out what coverages you need to protect adequately.
As a business owner, you are not required to combine liability and property insurance under one policy or with the same insurer. However, it can often simplify your life and make it easier to obtain liability insurance. Stand-alone liability insurance policies are accessible and ubiquitous, but combining property with liability insurance is usually the most cost-effective option for a business owner. This is particularly true for people with firms that have a higher liability risk, either as a result of the items they manufacture or increased exposure to the general public.
Determining whether you require a Business Owner's Package (BOP) or only general liability insurance coverage is also crucial. BOPs offer the advantage of providing property damage provision and liability coverage.
As your business grows, your needs will change. Review your liability policy annually to ensure you have the necessary coverages and protections to stay covered against the existing and evolving risks.
The process of obtaining liability insurance is not standardized and may vary from business to business. It is always helpful to speak to your insurance agent about the protection you need for your industry-specific risks.
Contact us today at Weeks & Associates Insurance Services to learn more about commercial general liability insurance. We will help you get the right coverage you need to protect your business at all times.