Tips for Saving on General Liability Insurance

General liability insurance is the first major layer of protection for claims of bodily injury or property damage against your business. Here are several helpful tips that will keep this valuable coverage from blowing your budget.

Shop, Shop, Shop!

Depending on your type of business there may be several general liability insurance companies interested in writing your coverage. Obtain business insurance quotes from at least three different companies. Submit the same information to each and request the same policy limits from each (this approach will give you a straightforward "apples-to-apples" comparison).

Stay Close to Home

A multiple-policy discount can provide significant savings. An insurance company with which you currently do business (i.e. business auto, umbrella, property, etc.) is a good place to look for discounts on general liability insurance.

Stick with the Group

Members of professional and trade associations and other business groups may have access to discounts on general liability insurance provided by an endorsed company. Consider which groups your business may be eligible for and the insurance savings that may be available if you join.

Loss Control

The best way for every type of business to save on general liability insurance is to maintain a favorable loss history – this means filing few or no claims. Ask if the general liability insurance company provides loss-control services. This service may be valuable in identifying areas of your premises or operations likely to cause a liability claim. Some companies may offer a discount for using the loss-control service.

Consider a Deductible

While deductibles are customary in most types of insurance, general liability insurance is an exception. However, many general liability insurance companies will offer a deductible if requested. A deductible can save you money on your premium in return for your willingness to take on a portion of the loss payment.

Keep in Touch

Any time you consider doing something new, such as offering a new service or manufacturing a new product, contact your general liability insurance provider first. The insurance company will tell you of any additional premium costs or considerations that the new service or product will have on your business’ general liability coverage. Failure to do so may result in a limitation in coverage. Furthermore, upon a policy audit other services will be reviewed and you will have to pay any additional premium resulting from those services – a surprise you want to avoid.

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