How much does General Liability Business Insurance cost?
Commercial Liability Insurance costs can vary widely, and, unlike personal lines insurance (like homeowners’ insurance), commercial business insurance is unique according to each business’ exposure. Pricing depends on many factors, including:
The cost of general liability insurance can range from a few hundred dollars for small business operations with limited exposure to many thousands of dollars for large enterprises. This cost needs to be balanced against the potential cost of a lawsuit, which typically may be $10,000 – $25,000* and does not include potential settlements or awards. Few small or medium business owners have a reserve fund in case someone decides to sue and even larger corporations can suffer serious financial setbacks by an expensive lawsuit.
Budgeting for proper commercial liability insurance coverage can provide a safety net to ensure that a costly lawsuit does not potentially wipe out some or all of your business assets.
Whether you run a large incorporated company, a partnership, a small start-up or a home-based business, commercial general liability insurance should be part of your business plan. This will help you sleep better at night and let you focus on growing your business.