How to compare general liability insurance quotes
Many factors determine which general liability insurance policy is the right one for your business. Here’s how to choose a policy by looking at six different aspects of your general liability insurance quotes.
How to find the best general liability insurance
You already know that shopping around is the best way to get a deal. That's true for insurance as well.
When you shop for general liability insurance, be sure to get quotes from different insurance companies. You'll see a range of costs and coverage options, but luckily you don't need to be an expert to compare policies.
Here are six factors to consider when reviewing your general liability insurance quotes.
1. Look at premiums and what's included
Businesses typically have a maximum price point they’re willing to pay for general liability insurance, so a good way to quickly narrow down your options is to go through your quotes and eliminate any policies with premiums that you can't afford.
Small businesses pay an average of $42 per month or $500 per year for this policy, but the exact figure depends on your unique risks.
Remember, a cheap policy is likely cheap for a reason, so you need to look at more than cost alone. Make sure the policy fulfills the requirements of any loans, leases, or contracts. You also want to make sure it provides sufficient financial protection in the event of a lawsuit or other incident that could affect your business.
2. Compare carrier ratings to look for a trustworthy provider
Every insurance company has a rating from the credit rating agency AM Best. AM Best rates the credit of insurance providers on a scale from A++, which indicates superior credit, to D, which indicates poor credit.
When you’re looking at quotes on TechInsurance, check the "carrier rating" in the upper left-hand corner to see the provider’s credit rating. TechInsurance only works with top-rated carriers, so expect high ratings.
3. Compare policy limits
Each general liability policy includes an aggregate limit, which is the maximum amount the policy will cover in one year, and a per occurrence limit, which is the maximum amount the policy will cover per incident.
Many policies also include sublimits, which limit coverage for particular incidents.
For example, a general liability policy might have a $1 million aggregate limit, a $250,000 per occurrence limit, and a $10,000 sublimit for immediate medical care if a client is injured in your office.
Most of these limits are fairly standard from one policy to another, but that's not always the case. Depending on the type of work you do or whether you receive clients in your office, the sublimits listed in your quote could have an impact on your choice.
4. See if the policy provides commercial property coverage
Standalone commercial general liability insurance only offers property coverage for items belonging to third parties that are damaged on your business premises.
While it costs more to purchase a BOP than to purchase standalone general liability insurance, the insurance bundle typically costs less than buying general liability and commercial property insurance separately.
If you’re looking for commercial property coverage, be sure to check out BOP quotes, too.
5. Find out what kind of deductible you’ll pay
Before you can receive benefits on a business insurance policy, you have to pay the annual deductible. Policies with higher deductibles typically have lower premiums, and vice versa.
Typically, you’ll want to look for a policy that strikes a good balance between the cost of the premium and the deductible.
6. Read the policy’s fine print
Now that you’ve narrowed down your quotes, it’s time to dig deeper into the fine print of the remaining policies.
Check the policy details to see:
- if it offers seasonal coverage increases (if you have a busy season)
- if it has any special limits or coverage restrictions for injuries at your office
- how it handles theft and damage
- how it responds to other issues
Get free quotes and compare policies online with TechInsurance
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