Do you need general liability or a business owner's policy?

A business owner's policy or BOP comes with all sorts of coverage. At the same time, general liability insurance works best for smaller operations. For instance, a contractor who doesn't own any commercial buildings would need general liability protection.

Are you unsure about what type of coverage you need? Then this article is for you. Let us walk you through the ins and outs of general liability policies so that you can pick the best coverages for your company.

Where does liability fit into business insurance? Read on to find out.

What Is General Liability Insurance?

What is general liability insurance for businesses? A business liability policy helps protect your company from claims.

You'll be protected from the type of claims that could pop up during regular business hours. This insurance policy offers protection for medical payments, advertising injuries, bodily injuries, and beyond.

If you find the right provider, they'll be able to help you get every coverage you need within your first quote. What type of coverages do you need? That's going to depend on the nature of your business!

Determining Business Coverage Needs

Business coverage needs vary from one place to the next. Smaller companies can usually benefit from a more lean policy with just the basic coverages.

Larger corporations, or those operating with a lot of risks, will need a more in-depth policy. The type of policy that can help respond to a wide variety of covered perils.

Whatever the case may be, you'll want to make sure you fine-tune your coverages with each liability quote you receive. By getting quotes that detail the exact coverages your company would need, you'll be able to budget accordingly.

What coverages should you look for? Property damage, physical injury, defense cost, and personal and advertising injury are some of the top coverages. For these coverages, you can expect to pay a considerable monthly premium.

Unique Pricing

The exact cost of your liability policy will depend on your exact needs. Every company is unique, and so are the risks that come with them.

Some of the price factors that you should keep in mind include the nature of your work, the location of your company, and the number of employees. If you work in an area that is prone to accidents, you'll have a higher premium. Whereas, if you work in an industry and area that's usually accident-free, you can enjoy low insurance rates.

Lower Policy Premiums

No matter what your insurance premiums are, there are always things you can do to help lower the cost. One of the best ways to lower the price of your general liability insurance policy is by asking your agent about discount opportunities.

Find out if there are any safe behavior programs that you can enroll your company in. Specific liability policies will reward customers for every year that they remain claim-free. 

Other policies will be able to reward your company just for completing special safety training. Every little you can do to bring your price down will be a big help!

If it's within your budget, try paying for the policy in one large lump sum. Paying in full usually presents a discount.

Another way to get a discount would be to bundle your insurance policies. You'll likely need other insurance coverages to keep your business up and running.

Auto insurance, umbrella insurance, and other policies can bundle together. When you bundle all of your insurance policies together, you usually receive a significant discount!

Common Liability Insurance Terms

So far, we've gone over the coverages that you should carry. But we didn't dive into what these coverages do. When you understand how these coverages operate, you'll be able to pick the best plan for your company.

For instance, property damage protects you from claims regarding other people's property. If one of your employees damages a client's home or vehicle, your property damage liability coverage can help pay for the cost.

Let's say there was an accident during business hours and a customer was hurt. In this case, you could take advantage of your medical payment coverage. For instance, if a customer was to slip and fall on a wet floor at your company, you could use your medical liability coverage.

Other coverages help protect your company against libel and slander lawsuits. Personal and advertising injury coverages will assist if any libel or slander claims are brought against your company.

Who needs liability insurance coverage in the first place? Any business that wants to cover all of its bases will need liability coverage. Liability coverage applies to small business owners, landscaping companies, marketing experts, real estate agents, and beyond.

Contractors, cleaning companies, and artisan contractors can also benefit from a liability policy.

If you're unsure whether your company needs liability coverages, reach out to a licensed agent and ask. It's free to get quotes, and talking to an insurance expert can be very reassuring.

Does an LLC Require Liability Protection?

An LLC can provide you with some protection from personal liability. However, the protection an LLC offers is not all-inclusive. In other words, if you own an LLC, your company can still face costly lawsuits. General liability insurance coverages can protect you if a third party files injury or property damage claims.

If you have an LLC, does your company need a particular type of liability insurance coverage? You might need a unique policy if your company provides a unique service.

Does your company own a condo? Then you'll need a condo association master insurance policy.

Do you own a storefront or use vehicles to transport employees, goods, or yourself? You'll need a business general liability policy and professional liability insurance. However, you might also need commercial auto insurance, cyber liability insurance, and a more inclusive business owner's policy. 

Speak to a Licensed Insurance Agent

Don't wait to call a general liability insurance agent. Now that you know how important business liability coverages are get your policies set up today. If something goes wrong, which is inevitable in business, you'll have the necessary coverages.

Call reputable providers to get quotes, and remember to ask them to quote you with exact coverages. The more exact your quotes can be, the easier it'll be to create an inclusive budget.

Did you need a few more tips to get up and running? Then check out another one of our blog posts.