Every small business faces the risk of lawsuits filed by customers or others who claim the company is responsible for damage to their property, personal injuries, or financial harm. Coverage like general liability insurance, for example, can pay for legal costs and also financial damages awarded by the court if your business is found to be liable.
Different types of business liability insurance cover different areas of a business. Common types of liability coverage include general liability insurance, professional liability insurance, and commercial auto insurance.
If your business has all three of these policies for different types of liabilities, for example, you can be protected from a wide range of claims, including:
These are just a few examples of ways that these liability insurance policies can protect your business.
Does your company need liability insurance for small businesses? In some states, certain types of business insurance (like commercial auto insurance)are required by law. In other instances, insurance may be required by your clients or landlord. Even when insurance isn’t required, most small businesses can benefit from the financial protection of insurance.
Unfortunately, just one lawsuit for bodily injury or property damage can bankrupt a small business that doesn't have adequate insurance protection. General liability insurance provides you with the coverage you need to pay for most damages, injuries, and medical costs related to accidents that could happen to people like your customers and other non-employees.
A number of factors affect the cost of liability insurance for businesses. One of them is the type of company you operate. Some businesses face more risk than others, and greater risk typically means higher premiums. Other company attributes play a role as well, like:
The specifics of your policy—things like coverage limits (the maximum amount the insurer will pay for a covered claim) and deductibles (the amount you pay for a covered claim before your insurance plan starts paying)—also affect your rate.
Getting a fast, free, no-obligation online quote is the best way to determine your liability insurance cost.
A Certificate of Insurance or COI is a document (physical or electronic) that proves you have liability insurance. The COI includes key details about your policy that a client, landlord, or someone else might require. You may need one for a few different reasons, including:
Plus, it’s just a good idea to have a copy of your Certificate of Liability Insurance for your records. At biBERK, we make it quick and easy to get a COI on our website.
Our licensed insurance experts are always happy to talk with you about your liability insurance needs. However, answers to some of the questions business owners frequently ask are provided below for your convenience.
Certain types of coverage may be required in your state and for your type of business. For example, commercial auto insurance is frequently required for companies that own vehicles. Plus, some organizations require that the businesses they work with have insurance, and some landlords require that you have general liability coverage. Our licensed business insurance experts can help you understand what kinds of policies you need.
Most likely, yes. But it depends on the state you’re in and the type of insurance you’re looking for. Review our coverage maps for details.
Each business has unique insurance requirements. Going through our online quote process or talking with one of our licensed insurance experts are two great ways to better understand your needs and the policies that can address them.
A primary insurance policy, like a general liability policy, kicks in first to cover a claim or loss. Excess insurance, like an umbrella policy, provides additional coverage for the same claim once the limits of the primary policy have been reached. For example, if you are found liable for $125,000 and your primary insurance policy has a $100,000 limit, an umbrella policy may cover the remaining $25,000.
The cost of professional liability insurance depends on factors such as your industry, years in business, and number of employees, as well as the level of coverage you select. Our professional liability insurance policies start around $300 per year and can go up into the thousands.
A general liability insurance example would be a policy that covers accidents that cause things like property damage or bodily injury. Professional liability insurance addresses claims from a client that you made a mistake or failed to do something you were obligated to do.
Commercial auto insurance can cover the cost of damages even if the vehicle is used for personal activities outside of its primary business use