5 Factors That Might Impact Your General Liability Coverage

As a small business owner, you know you need liability insurance, but the question we hear the most is: How much?

The amount of liability insurance will vary from individual to individual based on several factors, including the type of business you’re in and the specific risks that come with it. Additionally, if you have a contractual agreement with a large company, this is also a factor that could result in a need for higher liability coverage; the reason being that many of these big companies require a certain amount of liability coverage in order to do business with them.

Today, though, we’re going to talk specifically about five factors that might determine the ultimate cost of your general liability insurance.

5 Factors That Might Impact Your General Liability Coverage

1. The structure of your business.

Though all businesses run the risk of lawsuits, some are more susceptible than others. If business structures like yours tend to suffer more lawsuits, this might just lead to a higher priced general liability plan.

2. Past claims.

Has your business already experienced liability claims in the past? This could be a factor that affects your eligibility for general liability insurance, as well as the pricing.

3. Location.

Location, location, location. It’s all you hear when opening a business. But just as your location can help attract new customers, it might just play a role in the amount of general liability coverage you need. For instance, if you’re opening a business in a state with a history of large liability lawsuits, your business might require more general liability coverage than elsewhere.

4. Your business type.

Some industries are inherently “riskier”. Contractors, for instance, and businesses with cars on the road, might require an increase in general liability coverage to make sure they’re properly covered.

5. The size of your business.

Lastly, the size of your business plays a major role in the amount of general liability insurance you’ll need. It makes sense that the bigger your business is, and the more company vehicles you have on the road, the more coverage you’ll need.

At Latorre Insurance, we work with top insurance providers to give you the general liability coverage you need, at the most affordable price. Find out how much coverage your business will need–start a quote now!