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General liability insurance is your protection against lawsuits. As a small business, you may be required to carry general liability coverage on your policy. Here are six of the cheapest companies that offer policies for businesses with 1-10 employees. They all have low premiums and high deductibles in comparison to other options available out there.
General Liability Insurance is a type of insurance that protects the insured from financial loss due to injury or damage caused by the insured’s operation of a business. The 6 cheapest general liability insurance companies for small businesses are: AIG, Allianz, Chubb, CNA Financial Corporation, Liberty Mutual and State Farm.
Owners of businesses want to safeguard their assets, but insurance is costly. Unfortunately, less expensive insurance frequently implies less coverage. We looked at 15 firms to see which ones provide the best general liability insurance for small businesses at a cheap rate without losing coverage.
The following are the finest firms for low-cost general liability insurance:
- CyberPolicy; is the best option for low-cost general liability insurance; rates start at $240 per year.
- Hiscox; Best for microbusinesses. Premiums start at $350 per year and go up from there.
- State Farm: Best for spas and salons; premiums start at $500 per year and go up from there.
- Chubb: Best for merchants and distributors.
- The Hartford: Best for professional offices, such as attorneys and accountants.
- Travelers: Best for restaurant owners.
CyberPolicy
CyberPolicy offers small businesses the greatest opportunity to discover affordable general liability insurance that still delivers excellent coverage by collaborating with top-rated carriers and building an online platform that enables company owners to obtain general liability insurance within minutes of applying. In addition, CyberPolicy does not charge broker fees and might provide savings for insurance purchased in bulk.
Pricing
CyberPolicy’s general liability plans start at $20 per month or $240 per year. Because CyberPolicy is a broker, your premium is paid to the carrier that created the insurance, who then pays a commission to the broker. CyberPolicy is one of a kind in that it does not charge you a separate broker’s fee. However, policy maintenance, certificates of insurance, and endorsements may be charged by carriers.
CyberPolicy may also provide savings to company owners who buy numerous insurance, even if those plans are from different carriers. CyberPolicy may also qualify business owners for a discount if they switch their coverage to a different insurer.
Hiscox
Hiscox is a business insurance provider that focuses on independent contractors and small enterprises. Its general liability coverage, which covers a broad variety of businesses including trades, consulting, and design, begins at $350 per year. Business owners who operate out of their homes and those who bundle insurance may save up to 5% on their rates.
Pricing
Hiscox is one of the few insurance companies that publicize its basic pricing, indicating that general liability coverage begins at $350 per year. The minimum premium for a business owners’ policy (BOP), which combines general liability insurance and property coverage, is $500 per year, or $41.67 per month. Hiscox also provides discounts of up to 5% for home-based enterprises and company owners who purchase several policies, as well as no-cost monthly payment arrangements.
State Farm
State Farm is a nationwide insurance company with over 18,000 agent locations throughout the United States. State Farm’s BOP includes extensive and affordable general liability insurance, notably for hair salons, spas, nail salons, and massage therapists, but its brand is better recognized for vehicle insurance. The cost of a BOP starts at $500 per year.
Pricing
State Farm does not provide general liability insurance as a stand-alone policy for small businesses, but it does make obtaining a business owner’s policy (BOP) affordable and simple. General liability, business property, and business interruption coverage are all included in BOPs, which start at $500 per year. State Farm also covers equipment and signage for spa and salon businesses and automatically boosts coverage during high seasons.
While State Farm is perhaps better recognized for its personal insurance coverages such as house and vehicle, it did outperform other carriers in a recent J.D. Power poll for small business insurance.
Chubb
While not as well-known as some of the other insurers on our list, Chubb is a high-quality provider with solid financial backing that provides comprehensive coverage. Chubb offers outstanding standalone general liability insurance for as little as $300, but retailers may also save money by opting for a BOP. Because it covers outside property, employee theft, and forged checks, its BOP may be the better bargain.
Pricing
Chubb’s website does not provide particular pricing information or information regarding discounts, however, its small business website does provide an online estimate. The cheapest was a little about $300 per year, while the most expensive was $937. The cheapest general liability insurance we could find for any retail outlet was on the low end, and it included $100,000 in coverage for damages leased to you.
The Hartford
By producing policies that address the risks in its target sectors with greater coverage than other insurers, Hartford has become a national leader in small business insurance. Its high liability limits for damage to property leased to the policyholder, in particular, make it the ideal alternative for most professionals who operate in offices, such as lawyers, accountants, and financial advisors.
Pricing
For its target sectors, The Hartford’s general liability insurance products are priced competitively across the board. While The Hartford does not disclose its minimal premium, we found general liability estimates beginning at $330 per year for professionals in finance, accounting, law, and insurance. This is for the coverage at the Basic level. The Plus level adds hired and non-owned vehicles for $480 per year, while the Premier level adds data breach, employment practices liability, and waiver of subrogation for $845 per year.
The Hartford’s website does not mention any particular reductions, but it does provide a wide BOP that covers 40 different coverages that are more expensive with other carriers.
Travelers
Travelers is an excellent solution for restaurant proprietors with razor-thin profit margins. Most restaurant owners who deal with Travelers acquire a business owner’s policy (BOP) tailored to the industry, which includes general liability coverage of up to $2 million per occurrence and $4 million for all claims throughout the policy term. In its restaurant BOP, Travelers automatically provides coverage for spoilage, employee dishonesty, and equipment malfunction.
Pricing
Travelers, like other carriers, does not provide average or minimum premiums on its website. It does, however, provide a BOP that often bundles general liability and property insurance at a lesser cost than purchasing separate policies. Travelers’ restaurant BOP, known as Master Pac, also contains critical coverages that other insurers automatically charge for, such as coverage for spoilage, rental premises, and staff theft.
Travelers provides all of the fundamental insurance that small companies need, as well as risk management solutions that may help them save expenses.
Is it a Good Idea to Buy Low-Cost General Liability Insurance?
Cheap general liability insurance may seem to be a smart option, particularly if you’re a tiny company owner who has to keep an eye on every dollar. It does, however, come with certain drawbacks. If you have to pay for high claims out of pocket, policies might become pricey in the long term.
Average Claim Costs vs. General Liability Insurance Costs
General liability insurance is a crucial company coverage since it protects you against incidents that might happen to any business owner, such as accidents or property damage caused by persons who aren’t your workers. The cost of insurance varies based on the risk, but most small firms spend between $400 and $1,300 per year. That may seem like a lot, particularly if you’re on the upper end of the scale, but premiums paid today help your company survive if anything catastrophic occurs later.
Those dreadful events occur more often than most company owners know. The Hartford performed five-year research to discover the most frequent and expensive claims that small companies encounter, with the findings shown in the chart below.
The Cost of General Liability Claims for Small Businesses
The average cost of a general liability claim rises to $75,000 when a lawsuit is involved, according to The Hartford’s data—and that doesn’t include the expense of time spent away from your company. Whether the claim is real or frivolous, a modest claim might cost anywhere from $2,000 to $5,000 in settlement or defense costs. These expenses fall on your shoulders if you don’t have general liability insurance.
This isn’t to say you shouldn’t shop around for low-cost insurance. You’ll want to double-check that your policy accomplishes what it says it would, such as covering the risks you’re most likely to experience. Comparing quotes from top-rated general liability insurers is the best method to achieve this. As a result, you may be certain that your claims will be paid immediately and without causing any disruption to business operations.
How to Find the Most Cost-Effective General Liability Insurance for Your Small Business
While you don’t want to get inexpensive general liability insurance that leaves your company vulnerable, you do want the lowest policy you can find that covers all you need. You may do this by:
- Shopping around: Each insurance company has a certain appetite for certain types of risks. Generally, a company may provide more cheap general liability insurance to firms that fit inside their scope, so acquire at least three or four quotations before you purchase.
- Coverage evaluation: There are two types of limitations in general liability insurance: an aggregate limit, which is the total amount your insurer will pay for all claims throughout the policy period, and a per occurrence limit, which is the amount it will pay for any one claim. Higher coverage limits are more expensive, so select a quantity that protects you against danger without going overboard. For small enterprises, the most common limitations are $1 million per incident and $2 million overall.
- Estimating revenue accurately: Insurance applications nearly usually inquire about your income, in part because a higher income might suggest a higher risk. This implies that you should offer as much correct information as possible to avoid getting overcharged.
- Bundling policies: Many carriers provide savings when you purchase numerous policies since it improves the likelihood that you will renew with them. Most companies also have a business owner’s policy (BOP), which is meant to make general liability and property insurance more inexpensive for small firms.
- Paying in full at the start of the policy: Some carriers give a discount to company owners who pay in full at the start of the policy. Others may levy a surcharge for deferring premium payments.
- Managing risks: One of the elements insurers evaluate when determining your rate is your claims history. Taking actions to lower your odds of making claims might help you save money on your insurance premiums.
How We Assessed Providers of Low-Cost General Liability Insurance
Few insurance firms give precise premium information, owing to the fact that general liability prices vary depending on your activities and other factors relevant to your company. To find the lowest general liability insurance for small businesses, we searched for providers that published their general liability minimum premiums. Following that, we obtained quotations from key carriers for target sectors and searched for discount possibilities. We investigated internet brokers for both the carriers they deal with and if they impose extra costs since comparative shopping is critical for finding inexpensive coverage.
Conclusion
Because no company is immune to general liability lawsuits, it should be a common business practice to get coverage. However, cash-strapped small company owners seeking low-cost general liability insurance should keep in mind that pricing isn’t the only factor to consider. Coverage restrictions, extra costs, and the carrier’s reputation are all factors to consider.
Don’t spend time comparing general liability insurance plans from several companies to locate the best deal. By submitting an application via CyberPolicy, you may hire a professional to work for you. For almost two decades, it has assisted small company owners in locating the most affordable general liability insurance.
Frequently Asked Questions
Who has the best general liability?
At the moment, thats still up for debate among insurance companies. Some insurers also offer cheaper rates to customers who are willing to pay a higher premium in exchange for lower coverage limits and other perks like free roadside assistance or reduced deductibles.
What are the 4 types of business insurance?
A: These are the four types of business insurance.
1) Property Insurance
2) Business Interruption or Extra Expense Insurance
3) Equipment Breakdown and Replacement
4) General Liability
