“How much liability insurance do I need for my business,” is a question many entrepreneurs have. The short answer is as much as your budget will allow. According to an article on Forbes Advisor, most small businesses spend $65 per month while choosing standard coverage amounts of $1 million per occurrence and a $2 million aggregate policy limit for their general liability insurance coverage. However, the short answer is as much as your budget will allow. Additional factors that affect the cost of your liability insurance are: the type of business you operate.
Additional factors that affect the cost of your liability insurance are:
- the type of business you operate.
- the annual amount of your gross sales/receipts and employee payroll
The Basics of Liability Insurance
When it comes to liability insurance fundamentals, the phrase “business liability insurance” is a wide notion.
There Are Many Types of Business Liability Insurance
It’s important to have a conversation with your local, independent insurance agent to determine which types of liability insurance you should invest in for your business. Below are the most common types of business liability.
- General Liability
- Professional Liability
- Automobile Liability (even if you don’t own one)
- Employee Practices Liability Insurance
- Cyber Liability
- And others
How Much Liability Insurance is Needed?
Liability insurance protects and defends your business for everything it’s legally obligated to pay for because of its operations, subject to policy coverage and exclusions. When thinking about how much liability insurance you need, there are two important pieces of data you should consider:
- how much is your business worth?
- what are your contractual obligations to provide liability insurance?
Our team of expert agents at Inszone Insurance Services are here to help you determine what’s best for you and your business.
Juan Cruz
