{"id":3402,"date":"2022-09-25T12:49:40","date_gmt":"2022-09-25T17:49:40","guid":{"rendered":"https:\/\/www.northone.com\/blog\/?p=3402"},"modified":"2023-05-16T14:49:04","modified_gmt":"2023-05-16T19:49:04","slug":"general-liability-insurance-cost","status":"publish","type":"post","link":"https:\/\/www.northone.com\/blog\/financial-management\/general-liability-insurance-cost","title":{"rendered":"How Much Does General Liability Insurance Cost?"},"content":{"rendered":"\n

If you\u2019re working to establish yourself as a small business, it\u2019s likely your budget<\/a> is tight and you\u2019re actively looking for areas within your work to reduce cost and streamline processes to bolster your bottom line. You want to be safe, but even if funds aren\u2019t too tight, spending money on things you don\u2019t actively need\u2014like an additional insurance policy that may save you money someday down the road\u2014can be a challenge. You may also be worried about how much small business liability insurance costs.<\/p>\n\n\n\n

But the positive impact of general liability insurance on your business can be significant. Not only does it expand your pool of potential customers\u2014in many industries, people specifically look for this protection before hiring a business\u2014it also could protect you from serious financial loss, or even bankruptcy. Read on to learn more about general liability insurance and how much it\u2019ll cost you up front.<\/p>\n\n\n\n

<\/span>Understanding general liability insurance<\/strong><\/span><\/h2>\n\n\n\n

The specific claims that could be covered under the umbrella of general liability insurance\u2014also known as \u201cbusiness liability insurance\u201d or \u201ccommercial general liability insurance\u201d by some providers\u2014are diverse and depend on your specific industry. In general, however, this kind of insurance focuses on third-party bodily injury and property damage claims.<\/p>\n\n\n\n

These claims could result from a malfunction in your company\u2019s product, an unforeseen issue arising during a service, or an accident that occurred during routine business services. No matter what type of work your company does, if you interact with customers in person or online, rent or own an office or storefront, or visit clients in their homes\u2014in others words, if your business is like most\u2014protecting yourself and your employees by investing in a general liability policy is an important decision.<\/p>\n\n\n\n

Since many client contracts specifically require businesses to have a general liability insurance policy, even if you haven\u2019t needed it before, enrolling may open professional doors for you later on in your career. The bottom line is, accidents happen. In the event that you someday find yourself in an unforeseen legal situation, having this type of insurance can help make sure your business remains financially stable and your employees continue to get paid while you sort it out.<\/p>\n\n\n\n

<\/span>How much is liability insurance for a small business?<\/strong><\/span><\/h2>\n\n\n\n

Once you understand the important financial security net general liability insurance provides, the first question that will likely come to mind is, \u201cHow much is this going to cost me?\u201d The good news is that, for many small business owners, the monthly cost is quite low, typically in the ballpark of $40 to $50.<\/p>\n\n\n\n

Of course, there are a number of factors that are considered in determining a small business\u2019s liability insurance cost per month. Depending on where your business falls in these areas, that monthly price could be lower or higher. So, what are these factors?<\/p>\n\n\n\n