Commercial General Liability Insurance: A Summary of What Business Owners Need to Know About CGL
Almost every business, regardless of size or industry, requires commercial property and general liability insurance. The cost of commercial general liability insurance obviously varies widely based on industry, with “higher risk” industries, such as construction, paying more. Luckily, there are some good sites that offer free quotes. For small businesses, CGL insurance can cost well below $100 a month, while larger businesses could pay hundreds or even thousands.
This makes sense, as larger companies tend to have more employees, customers they serve, and larger buildings they occupy. The more people and property involved, the higher the risk that someone can become injured. You might also be expected to pay for workers’ compensation, depending on where you live and what kind of industry you are involved in. Location plays a role as well. If your place of operation is in a neighborhood with a high crime rate, you will likely be expected to pay more for insurance than a similar business in a small town or country with a low crime rate.
You have a better chance of getting a low quote for commercial general liability insurance if you have experience, and if your business has been around for at least a couple of years. This is because the longer a business has been involved in the industry, the more financially stable they are likely to be. It’ll also look impressive if your company hasn’t had any claims filed against it.
Deductibles and Premiums in Commercial General Liability Insurance
Like literally every other type of insurance out there, deductibles and premiums are going to play a role. Lower deductibles usually mean lower premiums, and higher deductibles result in lower premiums. If you are willing to raise your deductibles, the cost of CGL insurance will be decreased every month.
Another factor that could play a role in the quotes you get are gross sales. Obviously, the more revenue you have, the higher your premium is going to be.
There are more options if you want protection for yourself. CGL insurance usually doesn’t cover injuries to the owner. Depending on your industry, you might have an inventory you want to protect. An inventory of goods is usually valued at the price the business owner has paid for it, even if you plan to sell it at a higher price. If you’re involved in the financial sector, you might want to consider coverage for errors and omissions.
Get commercial general liability insurance and any other type of coverage tailored specifically for your needs at Hiscox Insurance Company. You can get a fast, free quote in just a matter of minutes. Hiscox Insurance offers the best customer support.