The Really Useful Information Company (TRUiC)- owned and managed by a team of world-leading entrepreneurs, has undoubtedly become the go-to online guide for everything entrepreneurship related- including business formation services, liability insurance, and Artificial Intelligence Tools, assisting over 300,000 startup owners worldwide.
Below, TRUiC explains how starting business owners can save significant capital on General Liability Insurance.
What Exactly Is General Liability Insurance?
General Liability Insurance allows starting business owners to insure themselves against any potential claims that may arise as a result of a person injuring themselves on their business’s property, even if that damage is caused as a direct result of their employees’ (or their own) negligent actions. This is because general liability insurance policies are structured so as to cover business owners’ judicial fees and court costs if they happen to be found personally liable.
Consequently, depending on the industry in question, General Liability Insurance can be one of the most popular and sought-after forms of insurance that business’s acquire after their launch.
TRUiC has delineated the most common risks that are covered by General Business Insurance in the U.S, these include:
- Physical injury- physical and quantifiable damage caused to a non-employee’s body.
- Most Medical payments- in this context, these relate to any medical fees that arise as a result of damage caused on a business owner’s premises.
- Property damage- any damage caused to property within your premises- whether your own or a client’s, is covered.
- Advertising- this covers any breach of another business’s Intellectual Property rights (such as trademarks or copyrights).
- Personal Liability- this covers quite a large range of torts, including: wrongful eviction, copyright infringement, slander and false arrest.
Is General Liability Insurance Affordable?
According to TRUiC, the average cost of General Liability Insurance for Limited Liability Companies tends to be anywhere between $300 and $1000 per annum; the reason for this disparity is because- subject to a business’s specificities and sector, different risks may be involved, and thus different insurance premiums may be demanded.
Such variables can include (but are not limited to):
- A business’s location,
- A business’s industry,
- Annual Payroll- the number of individuals that a company employs is almost always taken into account, and
- Aggregate Limit Deductible- this determines the total amount payable per policy period.
Of course, we have included general amounts for contextual purposes only, businesses looking to ascertain exactly how much a robust general liability insurance coverage package would cost them should get a quote from an insurance agent.
Benefits Of Having General Liability Insurance
Aside from the obvious direct benefits of protecting a company’s assets, General Liability Insurance does provide a plethora of other indirect benefits for companies that business owners should undoubtedly take into account.
Firstly, it can demonstrate that you are a secure, long-term business: businesses with General Liability Insurance can inadvertently portray an image of ‘’longevity’’ to their clients as they are directly implying that their company will not be held liable for any potential mistakes in the future.
Moreover, it can show a business’s employees that they are valued: This can go a long way in building a more friendly and welcoming office-culture, which has been shown to increase total productivity and incentivise a task-initiative based attitude.
Lastly, it can allow business owners to proliferate their business- This is because a small number of clients (depending on a business’s industry) may require General Liability Insurance so that they know that they will not be held personally liable for any erroneous business choices which may be made.
Does Every LLC Require General Liability Insurance?
Whilst most businesses can benefit from having General Liability Insurance, it is by no means a requirement.
According to TRUiC’s LLC Insurance guide, businesses that operate within the Real Estate industry, however- or any other valuable tangible asset-related market, should always ensure that they invest in General Liability Insurance; this is because any employee or company mistakes made in those areas can very easily give rise to exorbitantly high claims.
Overall, when considering the widespread protection that General Liability Insurance policies offer in conjunction with their relatively low annual cost, we can unequivocally see why more and more entrepreneurs are choosing to rely on them in 2021.