Discount Liability Insurance: Keeping Your Business Covered for the Right Price

The key to finding discount liability insurance is to know what you need from your general liability policy and what to ask for. Here are several tips to help you find discount liability insurance that doesn’t sacrifice valuable coverage:

Find a Good Fit

1. Comparison shop among at least three general liability insurance companies. This step will help you determine which company offers the best price for similar coverage.
2. Check with the professional associations/organizations you are a member of for information about discount liability insurance available through that group.
3. Ask about a “package policy.” Many types of businesses are eligible for a business owner’s policy (BOP) – a type of insurance that combines valuable property and liability coverages. Such a policy may offer a tremendous savings over purchasing the same coverages separately.

Coverage, Coverage, Coverage!

The only way to truly identify the right policy is to compare business liability insurance coverage. A policy with a lower premium and more restrictive coverage is not really a discount – it’s a gamble. You should:

First, check the coverage limits and know which types of losses they are applicable. Additionally, ensure that the limits satisfy any contractual obligations your business has, e.g., a landlord requiring certain limits of liability or a general contractor who requiring higher liability limits to perform a job.

Second, review the policy language for information about who is covered under the policy as well as any exclusions. A policy that does not cover the people you need it to cover (i.e., employees, partners, etc.) or losses common for your type of business (i.e., a plumber needs liability coverage for water damage) may not be worth the risk just to save a little money. 

Certificates

Some businesses need frequent proof of liability coverage to satisfy the requirements of those with whom they do business. This proof is furnished in the form of a certificate issued by the insurance company or an authorized representative of the company, such as an insurance agent.

Before purchasing a discount liability insurance policy inquire about the insurance company’s capacity to furnish certificates quickly upon request. A company that makes and backs up this guarantee may be worth be worth a few extra dollars.

Invasion of the “Additional Insured”

There are times when a manufacturer, property owner or other entity will require you to add them as an “Additional Insured” on your general liability policy. This practice may require additional premium. If you know this will be a common practice for your business be sure to ask how much it will cost (some companies will charge more than others) as well as any limitations.