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Business Liability Insurance

Updated 01:15 PM EST, Fri February 12, 2021

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What Is Business Liability Insurance?

Business liability insurance, also known as general liability insurance and commercial general liability insurance, helps protect your business from claims of bodily injury or property damage. These business liability claims can come up during your normal operations and be very costly. Without coverage, you’ll have to pay for costs out of pocket. To avoid this, you’ll want to make sure you have the right liability policies in place. You can learn more by getting a quote today.
 

What Does Business Liability Insurance Cover?

Your business liability insurance policy can help cover claims like:
 
  • Bodily injury caused by your business
  • Medical costs for customers injured by your business
  • Property damage, like if your employee breaks a client’s window while working in their home
  • Reputational harm if someone sues you for libelous or slanderous statements
  • Advertising injuries or errors, such as copyright infringement in your marketing materials
  • Damage to property you rented that’s caused by a fire, lightning strike or explosion
Many business owners increase their protection by bundling coverage through a Business Owner’s Policy (BOP). A BOP combines three insurance coverages into one convenient policy:
 
For small business owners, a BOP provides a good foundation for protection. With a packaged policy, you can get protection while also saving on insurance costs.
 
It’s also important to be aware that your business liability insurance policy doesn’t cover all claims. You may need other types of insurance to help you get full protection for your business. For example, you’ll likely need:
 
Having the right liability insurance for your business can help cover these types of claims and related expenses, like legal defense costs. Without the proper coverage, you may have to pay these costs yourself. You’ll also want to get a certificate of insurance that shows you have the right business insurance coverages.
 
If you own vehicles, you might also want to consider general liability umbrella protection. It gives you extra coverage to help pay for costs that exceed certain liability policy limits.
 

Who Needs Business Liability Insurance Coverage?

It’s not a state business insurance requirement to have general business liability insurance. But, it’s important to have if your company:
 
  • Has employees
  • Interacts directly with customers
  • Works in a high-risk industry
  • Frequently works off-premises
This insurance can help protect many businesses in various industries. For instance, if you’re hired as an independent contractor, and you damage your customer’s walls, this coverage can help pay the cost of repairs. It can also help protect your business if you’re in a lower-risk industry. So, if your client trips in your accounting firm and breaks her arm, this coverage can help pay her medical bills.
 
 
For startup owners, our general liability insurance for startups can give you the coverage you need to protect your new business.
 

How Much Does General Business Liability Coverage Cost?

Every business is unique. So, there’s not a one-size-fits-all business liability insurance policy. This means your business will have its own general liability insurance cost that’s based on several factors, like your:
 
  • Policy deductible: Your deductible amount impacts your cost. For example, choosing a lower deductible can increase your premium.
  • Coverage details: You can add optional coverages to your business liability policy. This will increase your insurance rate, because your business has more protection.
  • Type of business: Insurance companies often charge industries with more risk a higher rate than companies in low-risk industries. For instance, a landscaping business will likely have a higher rate than an accounting firm.
  • Years of experience: The more experience your business has, the lower your rate can be. Newer businesses can have an increased rate because there’s a higher risk of claims.
  • Location: Busier places can increase your business’ liability risks. For instance, being in a city with more foot traffic can increase your insurance rates, because there’s a higher risk of customer injuries.
  • Claims history: If you haven’t caused any customer injuries or property damage, you’ll likely have a lower rate.
To find the best rate, it’s a good idea to compare insurance quotes from multiple companies. To get started, get a quote from us today.
 

How Much Does a One Million Dollar Business Liability Insurance Policy Cost?

The cost of a business liability insurance policy with a $1 million limit can depend on your industry, location, coverage details and claims history. This means everyone’s rate will be unique for their business.
 

Find Out More About Business Liability Insurance

Without business liability insurance, your company may have to pay the cost of claims out of pocket. So, it’s important to get the right coverage to help protect your business. With over 200 years of experience, we understand how every business is unique. To learn more about our small business insurance, get a quote today.

The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
 
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
 
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In Arizona, New Hampshire, Washington and California, the insurance is underwritten by Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Navigators Insurance Company, Navigators Specialty Insurance Company, Pacific Insurance Company, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company and Twin City Fire Insurance Company. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Fire Insurance Company.
 
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.
 
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