General Liability Insurance (2024)

FAQs

General Liability Insurance? ›

Liability insurance coverage protects you financially if you're responsible for someone else's injuries or property damage. Liability coverage comes standard with most vehicle and property insurance policies, including auto and homeowners insurance.

Your GLI policy can help pay for your legal fees and settlement costs. Without general liability insurance coverage, your business would have to pay out of pocket for costly claims that could come up during normal business operations.

How much is a 2-million dollar insurance policy for a business? On average, an insurance policy that offers coverage for up to $2 million can cost about $30 a month in premiums.

Insurance Expenses

Another possibility is to classify general liability insurance as an insurance expense. This is because the insurance is specifically for protecting the business from liability, and the cost of the insurance is directly related to the risk of liability.

A $5 million umbrella policy costs around $375 to $525 per year, on average. Every policyholder's umbrella insurance premium will vary based on their personal risk factors, so individuals who own more cars or properties will be more expensive to insure, as will people who are particularly likely to be sued.

Some large businesses may choose to self-insure to save money and control costs for their commercial property, auto and general liability coverages. When a business chooses this route, they don't buy a plan from an insurance company.

On average, Insureon customers pay $42 per month, or about $500 annually, for a $1 million general liability insurance policy. Additionally, 29% pay less than $30 per month, and 40% pay between $30 and $60 per month. Customers who need more coverage will likely pay a higher premium.

Cost. As a general rule of thumb, figure that each million dollars of insurance cost $1,000.

The average cost of life insurance for a $500,000 term policy is $29 per month. This coverage offers more than just funeral expense relief; it can also cover mortgage payments, educational costs and daily living expenses for years. While many insurers offer this policy, costs and benefits can vary.

General Liability Insurance

General liability insurance helps protect your business from claims that it caused bodily injury or property damage to someone else. For example, if a customer slips in your store, this coverage can help pay for their medical expenses.

Should I shop around for business insurance? ›

As a general rule, you'll want to get business insurance quotes from at least three different companies.

(For more on our analysis, see “Methodology” section at the end of this article). The survey found that 96% of owners didn't achieve a passing grade when quizzed about basic insurance knowledge. Nearly 30% don't carry any small business insurance at all. That should give all entrepreneurs some pause.

General liability insurance is usually tax-deductible because the IRS considers your policy payments to be a business expense. Keep track of all the payments you make toward your policy, as that will be important when you file your taxes at the beginning of the year.

Also please note, General Liability insurance only covers property damage and customer injury.

The list below will more clearly outline who your coverage applies to: Individual: Named individual and their spouse. Partnership or Joint Venture: Named partnership, named joint venture, partners, members, and their spouse. Limited Liability Company: Named LLC, members, and managers.

General liability insurance may help cover repair or replacement costs if your business accidently damages someone else's property. You might also feel better and could have increased peace of mind knowing your business may be covered just in case an accident happens.

Under an occurrence policy, the occurrence of injury or damage is the trigger; liability will be covered under that policy if the injury or damage occurred during the policy period. Under a claims-made policy, the making of a claim triggers coverage.

A Commercial General Liability (CGL) policy protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations or your employees.

Employment-based plans accounted for more than half of the population with insurance; the next largest sources of coverage were Medicaid and Medicare. There were 179.8 million people covered by employer-sponsored insurance in 2022, which is an increase of 1.5 million from 2021.