Keep in mind that there are several types of insurance that a small business should have, in addition to commercial general liability insurance. As an example, if business operations are stalled due to an unexpected hold on a project, commercial general liability insurance does not cover the cost of lost income. In such a case, business interruption insurance is necessary.
We know insurance can be confusing, which is why we’ve answered the top three frequently asked questions about commercial liability insurance:
How Can I Save Money On Commercial Liability Insurance?
The cost of commercial insurance for business owners varies based on several factors, such as the size of your company, industry, and years of experience. That’s not to say you should accept the first policy offered to you. When purchasing insurance, the most inexpensive policy isn’t always the best and vice versa.
Here are a few steps you can take to save money and get the best coverage for your business:
- Take Time To Shop Around
Don’t accept the first policy you offered without conducting additional research or requesting quotes from other companies. Okay, we know you’re super busy, so, this might not be the best use of your time. in the interest of saving time, allow us to do the shopping around for you. We’ve partnered with over fifty of Canada’s largest insurance companies to ensure we’re offering you the best policy for your business at the best price.
- Review The Fees Charged By Your Broker
Compared to the investment industry, insurers aren’t beholden to the same level of transparency, allowing them to charge steeper fees on policy renewals. When your insurance broker sends you a letter notifying you that your policy is up for renewal and that rates will be going up ever so slightly, ask for a breakdown of the coverage and costs. You might be paying for coverage you don’t need. At Zensurance, we’ve removed the confusing jargon and made our policies crystal-clear, so you know what you’re paying for every single time.
- Ask Your Broker About Which Incidents Are Covered And What’s Excluded
Uncertain whether your cybersecurity policy covers data breaches caused by social engineering tactics? It’s your right to ask your broker to explain the fine print. Speak with your broker about customizing your policy to meet your specific business needs. There’s no point in having a policy that doesn’t cover you where you need it most. Alternatively, make sure you’re aware of what your policy doesn’t include, in case you need to purchase additional coverage.
How Much Commercial Liability Insurance Do I Need?
Every business is unique, and so is every insurance policy. The amount of coverage you need will depend on the size of your business and its specific risks. You will also want to take location and industry into consideration. For a small- to medium-sized business, you can anticipate spending $450.00 annually on a basic CGL policy with a $2,000,000.00 limit.