Pricing and Costs of Business Liability Insurance

Stretch your dollars and get the most out of your general liability insurance

Pricing and costs of business liability insurance vary by area of the country, by industry and even by how long you've been in business. Because the needs of each business vary greatly, so do the amount of insurance your business should have and how much it will cost. But no matter the industry, there are things you can do to maximize your insurance dollars.

Insurance companies base their prices on risk, so the lower your risk, the lower the premium. The insured's previous behavior is the greatest predictor of future losses, so your liability insurance rates will be higher if you've suffered recent losses.

You can put your insurance dollars to work by doing the following:

1. Save on general business liability insurance by preventing losses.

2. Use company affiliations when shopping for business liability insurance quotes.

3. Check for financial stability in your general liability insurance company.

 

Avoid losses to save on your corporate liability insurance costs

When it comes to insurance, you can save money by not having losses. A company with recent losses may pay twice as much for the same coverage compared to a similar company that hasn't had a claim. Further, all businesses in a given industry are categorized according to the general risk, so look at the information available to your insurance company about your industry.
Try: Obtain data about loss figures for your industry from the Bureau of Labor Statistics. A handy online tool can help you compare the different industries and how liability insurance companies rate them based on risk. Then, look into loss prevention. You can find a variety of loss-prevention topics available as a "webinar" from Liberty Mutual.

Save money on company liability insurance with your group memberships

Providers of business liability insurance offer group savings to trade associations for their insurance products. Check to see if you can take advantage of one of these special group rates.
Try: Use your relationships with national trade associations to get discounts on your business insurance through Allstate. Or, you can save up to 10% on business insurance through Safeco with your Costco membership.

Check the solvency of liability insurance providers you're considering

It's not just the cost of the insurance that's important, but also the solvency of the company. If the company isn't around to take care of your claim, that low rate you got means nothing. So check the solvency of the liability insurance companies you're evaluating.
Try: A.M. Best is well known for providing ratings for insurance companies based on their solvency. Standard and Poor's also collects data and determines solvency for insurance companies. In addition, you can check for complaints and their resolution through the insurance department in your state, courtesy of the Insurance Information Institute.

 

• Enjoy top company liability insurance savings by keeping your credit score high and not making claims.

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