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How Much Liability Insurance Do I Need for My Business in 2023?

10 May 2022
How Much Liability Insurance Do I Need for My Business?

“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

VP – Marketing & Development

Juan Cruz is the Vice President of Marketing and Development at Inszone Insurance Services. He joined the company in 2016, bringing with him over seven years of experience in direct response marketing. Juan holds a bachelor’s degree in Global Studies with a minor in Anthropology from the University of California, Los Angeles (UCLA).

At Inszone, Juan oversees all aspects of marketing, focusing on building a consistent brand identity and creating successful direct response campaigns. His expertise has helped multiple companies enhance their digital presence, grow lead generation efforts, and strengthen their brand visibility.

A passionate traveler, Juan has visited 25 countries and is an avid scuba diver and bike rider. He believes in working hard to enjoy life to the fullest.

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