For a business, general liability insurance is a dam against disaster. This type of insurance protects the company or organization from legal claims related to injuries and/or damages that might occur on the business property. Sometimes referred to as commercial liability insurance, it can also help organizations with legal and medical expenses that may be incurred. 

Even if you currently have liability insurance, it’s possible that the policy hasn’t been revisited in a while and your current coverage is inadequate if the business has grown or changed in any way. It may be time to reevaluate your current policy. 

Before you can purchase business liability insurance, you need to understand how much protection you will need to cover all potential scenarios. Below are some tips for determining the right amount of general liability insurance coverage you will require. 

What Type of Business Do You Have?

Some businesses are riskier to operate than others. You’ll need to know what every employee is doing: are they operating heavy machinery, or are they stuffing envelopes? How experienced are your workers? Are they licensed to do their job? What are your work premises like? Is there a lot of noise involved, or repetitive motions? Do you work with any type of chemicals or flammable materials? If your business is IT related or collects sensitive data, you may need to carry additional cyber liability insurance to protect against the fallout from hacking or data breaches. 

Who Are Your Customers?

Whether your operation works entirely in the business-to-business realm or you interact with the general public will also dictate what type of coverage you need. Do customers visit your premises? Companies that interact with large numbers of the public may need more insurance than those that operate in a closed environment with only employees. 

What is a Ballpark Figure for My Liability Insurance?

In general, you will require enough liability insurance to cover your organization’s net worth. Net worth is the value of all the things your business owns, plus cash and investments. If you rent a building, chances are good that the landlord will specify how much liability coverage you need. Likewise, if you have large clients, the client agreements may specify the required level of coverage. 

What Types of Business Liability Insurance Exist?

There are two types of business liability insurance.  Commercial property insurance will ensure reimbursement for damaged, lost or stolen property. Business liability insurance will assist your company in paying legal costs if someone else sues the company.

Talk to a Licensed Insurance Agent

To find an affordable general liability policy that won’t break the bank but will cover your needs, it’s important to sit down with a licensed agent to ensure you are choosing the appropriate insurance policy for your business. 

Connecticut-based Petruzelo Insurance offers business liability policies that fit your needs and your budget while ensuring you are covered for all possibilities. Call us at 866-479-3327 or visit our website for more information.