General liability insurance is the first major layer of protection for
claims of bodily injury or property damage against your business. Here
are several helpful tips that will keep this valuable coverage from blowing
your budget.
Shop, Shop, Shop!
Depending on your type of business there may be several general liability
insurance companies interested in writing your coverage. Obtain business insurance quotes from at least three different companies. Submit the same information
to each and request the same policy limits from each (this approach will
give you a straightforward "apples-to-apples" comparison).
Stay Close to Home
A multiple-policy discount can provide significant savings. An insurance
company with which you currently do business (i.e. business auto, umbrella,
property, etc.) is a good place to look for discounts on general liability
insurance.
Stick with the Group
Members of professional and trade associations and other business groups
may have access to discounts on general liability insurance provided
by an endorsed company. Consider which groups your business may be eligible
for and the insurance savings that may be available if you join.
Loss Control
The best way for every type of business to save on general liability
insurance is to maintain a favorable loss history – this means filing
few or no claims. Ask if the general liability insurance company provides
loss-control services. This service may be valuable in identifying areas
of your premises or operations likely to cause a liability claim. Some
companies may offer a discount for using the loss-control service.
Consider a Deductible
While deductibles are customary in most types of insurance, general
liability insurance is an exception. However, many general liability
insurance companies will offer a deductible if requested. A deductible
can save you money on your premium in return for your willingness to
take on a portion of the loss payment.
Keep in Touch
Any time you consider doing something new, such as offering a new service
or manufacturing a new product, contact your general liability insurance
provider first. The insurance company will tell you of any additional
premium costs or considerations that the new service or product will
have on your business’ general liability coverage. Failure to do
so may result in a limitation in coverage. Furthermore, upon a policy
audit other services will be reviewed and you will have to pay any additional
premium resulting from those services – a surprise you want to avoid.
Learn more about business insurance from NetQuote – get your
free business insurance quotes today.
