Info about Insurance
Public Liability Insurance
Public liability insurance protects a business in case of injury or property damage incurred on the business premises or as a result of business activities. Policies generally cover the cost of legal fees as well as any damages awarded. States usually require businesses to carry this type of coverage; it may be included under one's Business Owners Policy.
Areas Covered
Business public liability insurance protects a business from claims made against it. It covers bodily injury, property damage, advertising injury, and may even include injury due to slander or libel. Coverage usually pays for legal fees, damages, medical expenses, and so on, varying by policy. It does not cover a business from all liability, notably for professional businesses like those operated by doctors, lawyers, or accountants; they require an additional, professional liability policy to cover them from claims of negligence.
Components of Coverage
Public liability insurance includes several components. The most immediate is the premium – what a business pays every month for the coverage. The deductible is the amount the business has to pay out of pocket in case a claim is filed. Generally, the higher the deductible, the lower the premium. Then there is the coverage amount – the total amount of liability for which the business is covered. It's essential to research the average claims costs in one's industry because this will inform how high one's coverage amount should be. A business doesn't want to pay the costs of carrying a $5 million policy if no claim has ever required more than $1 million in coverage. At the same time, businesses need to make sure they have sufficient coverage to pay for the full amount. If getting a higher coverage amount is prohibitively expensive, business owners may get an umbrella policy to cover the difference between a claim amount and one's coverage amount.
Factors Affecting Cost
The insurance cost varies widely depending on the type of business. Large stores selling products to many customers will have very different premiums than will a home business. Premiums depend on the type of business, the business' activities, and the number of employees. Additionally, any prior claims lodged against one's business will need to be disclosed. Other characteristics that can affect the cost of the insurance include if the business has work in an industrial or commercial zone aside from one's office or store, any subsidiaries owned by the company, the number of customers the business has, one's product turnover, how long the business has been in operation, the state in which the business is located, among many others. The total amount of coverage also impacts the cost; a $5 million policy will cost more than a $1 million policy.
Public Liability Insurance Quotes
It's very difficult to talk about average public liability insurance rates because coverage is tailored to each individual business. Coverage for small businesses can run anywhere from $750 to $10,000 or higher, depending on all the factors. A garage door company with only one employee might have premiums of $1,200 per year. A small construction business doing work on airport runways could face premiums of $25,000 to $50,000 or higher. A one-day event policy for someone selling out of a stall at a fair can be anywhere from $500 to $750. In short, the cost varies. Business owners should check into the costs for his or her industry.
Research the Best Coverage
Owners should utilize the Internet to get the best deals on their coverage. Many websites offer comparison quotes from several different insurers. They allow owners to compare both costs and details of coverage. Make sure to read the fine print. The cheapest coverage is not always the best choice. Owners should look at the value of coverage, not simply the dollar amount.