Do you have enough general liability insurance? This is a question most business owners need to consider. Even if you never adjusted the coverage limits prior to now, there are some indications to look for to see if it is time to do so. Business owners should review their coverage on an annual basis. Doing so can shed light on some key areas of risk. Here is how to get more coverage to fit your needs.
How Much Insurance Do You Need?
There is no specific liability coverage limit that fits all companies. The amount you need depends on several things, including:
• The size of company you have (bigger companies generally have higher risks levels)
• The type of business you have (some companies have a history of filing more business insurance claims, some have higher liability risks)
• The number of employees you have (more employees means more risks of injury, fraud, or other losses to other parties)
• The type of customers you work with (businesses or individual consumers, for example)
• The type of service you offer (do you provide professional consultancy services or a simple repair service)
The goal of every general liability insurance policy is to give you protection from risks in case you cause harm to others. Yet, it is up to you and your business insurance agent to name what those risks are specifically. That way, you can better set up your coverage.
What Is Typical?
A typical small business general liability insurance policy provides $1 million to $2 million in coverage. Again, this may not be the right amount for your company. The policy generally will have a per-incident and a per-claim limit. Some policies will have a lifetime limit, too. It’s important to know the details of your plan specifically.
When You Need More
There are some situations where you may need a higher amount of general liability insurance than you have. Your business insurance agent can help you. He or she will discuss your concerns with you. Sometimes, the agent will bring these concerns to your attention.
Consider them. Did you file a claim last year? What about over the last five years? If so, it may be necessary to extend your general liability insurance coverage to be at least the amount of claims you paid out.
Your business insurance agent can help extend the amount of coverage you have. Sometimes, you will need additional policies. For example, in some situations, professional liability insurance becomes necessary. This is another layer of financial protection that can be beneficial to your company if you provide consultant services or provide advice. Contact us today for more information on general liability insurance.