Like most business owners, you're probably paying too much for your general liability insurance. General liability insurance can help protect your business from risks such as third-party bodily injury, property damage, and personal injury.
By understanding how it works and what it covers, you can ensure you have the right level of protection for your business or even personally with engagement ring insurance.
This article explains some little-known secrets that could help you save money on your coverage. Let's start by understanding the basics of general liability insurance:
Areas covered by public liability insurance
Most business owners need general liability insurance to protect themselves from claims of bodily injury or property damage caused by their business operations. Public liability insurance can also provide coverage for specific personal and advertising injuries.
General liability insurance covers the following areas:
- Tenant legal liability: If you're a tenant and any damage is incurred on the property, you'll have to take care of the expenses.
- Libel, slander, and copyright: If you or your employees make disparaging comments about a competitor that are published, you could be sued for libel or slander. If you use someone else's copyrighted material without permission, you could also be sued for copyright infringement.
- Product liability: If you sell products, your insurance can help protect you from lawsuits alleging that your products caused injuries or damage.
- Third-party bodily injury: If a third party, such as a customer, is injured while on your premises, your insurance can help cover the costs of their medical treatment. Examples include a customer slipping and falling in your store or a delivery person being injured on your property.
Here's a video to help give a better understanding of general liability.
To summarize, general liability insurance covers unintentional negligence of policyholders.
Now that you have a basic idea of general liability insurance let's dive deep into the secrets no one has told you about.
1. You may be able to get by with less coverage than you think
Many business owners carry more range than they need. Being sales is part of a typical insurance agent's job. If you want to get by with a lower level of coverage, you'll have to be the one to assert yourself and ask for the specific range required.
To do that, have the following numbers ready in front of you:
- Gross sales
- Operating costs
- Gross payroll
- Number of employees
- Loss History
- Operations
The numbers are essential for insurance providers to develop your best policy. If you're prepared beforehand and have everything available, you'll earn the best cost of your general liability insurance.
Remember that insurance companies will audit your policies, including worker's compensation and general liability, so undercutting your worker's compensation will not help.
2. Higher deductibles can save you money
By opting for a higher deductible, you can lower your overall premiums. Just ensure you have enough money to cover the deductible in case of a claim. To increase your chances of having claims paid, purchase insurance from a provider with an excellent financial rating.
A higher deductible means that you'll be paying less for your policy.
For example: if there's a deductible of $1000, you'll be paying the initial $1000 yourself. After this number, the insurance starts covering the amount. The deductible offered on your policy differs from case to case.
Have a good credit score. Keep your credit score rating updated, as it will help achieve the best possible package for your business needs.
3. Shop around for the best rates
Hire an independent insurance agency. They focus on providing solutions according to individual client requirements. Choosing from various insurance programs and companies can be a tough job. Insurance rates differ. Each company has its rates and policies.
It will always pay off if you compare rates before buying a policy.
Many insurance companies use different digital marketing channels for advertising their services. Compare other policies and then compare their rates. If some insurance company charges a high premium, it doesn't mean their service is better and vice versa.
If the company shows up on top in the search engine results, it simply shows that its website is optimized for search engines. This doesn't always reflect the quality of their services.
4. Know what's not covered by general liability insurance
It's no use signing an insurance policy only to find out that it doesn't cover what you need it to. Be sure to read the fine print to know exactly what your policy doesn't cover.
Some standard exclusions from general liability insurance policies include:
- Intentional acts: If you intentionally cause bodily injury or property damage, your insurance policy will not cover the damages. Similar is the case for criminal damages, also excluded from general liability insurance.
- Professional liability: In addition to general liability insurance, professional liability insurance will need to be purchased if you're in the following professions: doctor, lawyer, architect, realtor, or insurance agent.
- Claims that are non-professional: Slips in the office due to a wet floor, no presence of safety signs, or a fire that is caused (For instance: fire caused at a project site.)
- Property damage: The insurance does not account for the damage to your property.
5. Showcase an improved safety culture at your company
The aim of insurance companies is also to be profitable. They would be more willing to work with you if you're doing everything possible to reduce the risks associated with your business. One way to do this is by implementing and documenting a safety program. This could include things like:
- Regular safety meetings: Properly train your employees on safety procedures and make sure they understand their importance
- Having safety manuals: Have written site instructions and a paper trail documenting your safety procedures. The manuals will be helpful if you ever need to file a claim.
- Protective equipment: Invest in your employees' protective equipment (PPE). This could include hard hats, safety glasses, and gloves.
In short, demonstrate that you're proactive about reducing risks. Some insurers will give you a discount if you take steps to minimize the risks associated with your business.
6. Bundle your policies
If you have multiple insurance policies, you may get a discount by bundling them together.
Package different policies together under one roof. For example, you might get a break on your car insurance if you also get general liability insurance with the same company. Check your state's requirements and talk to your accountant to see if the bundled coverage suits you.
In addition, keep in mind that you may not need general liability insurance at all.
If your business is tiny or you have a home-based business, opting not to have general liability insurance is also an option. Your best bid is to have strict safety policies in such a case. This reduces the chances of having to rely on insurance.
What's the secret to getting the best policy?
The article briefly overviews tips for saving money on your general liability insurance. By following these secrets, you can get the insurance that serves the purpose and doesn't affect the bottom line.
Keep the following points in mind when finalizing general liability insurance:
- Comparing rates from different places before buying a policy might be time-consuming. However, it's a sure way to find the best deal.
- Do your research online to find the best deal for you. Many insurers offer discounts for online purchases.
- Improve safety procedures within your company by installing security cameras or alarms and implementing a safety program.
- Aim for a decent credit score. A good credit score is a positive indicator that shows you're a low-risk investment.
- Build a good relationship with your insurance agent. They might be able to help you save money on your premium or suggest a better insurance package for your business needs.
Insurance companies assess the risk of insuring a company by looking at different factors. The formula is simple: lessen the risk for the insurance carriers to get a profitable package for yourself.
