Getting a liability coverage for a business is an essential step. No way can you keep your business afloat and prosper it if not having a secure insurance policy. A business liability insurance is designed to protect a company against claims threatening from the third parties. It also covers all the medical and property damage expenses a client or stranger may get in your business territory or as a result of your business activity.
Factors Influencing The Cost
However, when considering purchasing one, you cannot but inquire how much does liability insurance cost. As a rule, this mainly depends on the business type and size. Yet, there are other factors influencing the price including the coverage level you prefer, the area your business is established on, etc. However, perhaps the greatest determinant factor in how much does liability insurance cost be the industry the insured company operates in. For instance, a home-based accounting company has far fewer risks than a building company. The highest risk industries are the followings from highest to lowest in sequence they are mentioned:
1. Construction & Contracting
3. Cleaning Services
7. IT services
8. Medical Offices & Health Professionals
9. Professional & Specialty Services
10. Advertising/Media Services
The Latest Statistics
Once we have found out the important aspects that may raise or lower the liability insurance cost, it is high time to have a look at the statistics. An investigation on the issue has recently been carried out to determine how much does liability insurance cost in average. The typical cost for a liability coverage every small business has to pay every year is counted $575.16 or $50 every month. The greatest part of customers choose a coverage the price for which ranges from $400 to $600. You see that this is a minor price for any company whilst the security it provides is great!
Business Liability Limits
How much does liability insurance cost? This also depends on the limits you apply for. If you want to get a broader protection, you definitely can’t get along merely with the basic coverage. You definitely need to be prepared to pay higher premiums to get higher coverage limits. The greatest part of liability insurance customers opt for $1M/$2M (from one million dollars to two million dollars) limits. When a $1M coverage is purchased, it means the insurance provider will pay up to $1, 000 000 to cover a single claim during its lifetime (one year).
How To Reduce Liability Price
We have answered your question How much does liability insurance cost and its time to mention the three ways that will help you reduce the price for a liability coverage. These are:
1. Bundle your insurance policies
2. Pay the whole premium up front
3. Proactively manage your risks