What Is Small Business Liability Insurance?
Liability insurance for small businesses helps cover claims of:
- Bodily injuries
- Property damage
- Financial loss due to an error or omission
Every small business faces unique risks. We’re here to help protect you from them withsmall business insurance coverage that can help you stay focused on running a successful operation.
To learn more about your small business insurance options, get a quote.
What Does Liability Insurance Coverage for Small Businesses Include?
Small business liability insurance includes several different types of coverage that you should think about for your risk management plan. Be aware that small business insurance requirements vary by state, such as carrying workers’ compensation insurance or commercial auto insurance. You may need acertificate of insuranceto help prove that your business has the necessary coverage.
To learn more about the different types of business insurance,get a quote today.
General Liability Insurance
General liability insurancehelps cover claims that your business causedbodily injuriesor damage to another person’s property. It can also help covertortfeasorclaimssuch as libel and slander. This coverage can help pay for legal fees and claims that can come up during normal business operations.
Business Auto Insurance
Business auto insurance, or commercial auto insurance, helps protect you and your employees on the road if you drive a company-owned vehicle for business. It can help cover bodily injury and property damage claims from an accident that your business is involved in.
Professional Liability Insurance
Professional liability insurancehelps protect your business from liability claims that it made a mistake in the professional services given. It’s also known as errors and omissions insurance. Thisprofessional liability for small businesses coverage can help pay your:
- Defense costs
- Attorney fees
- Judgments
- Settlements
Workers’ Compensation Insurance
Workers’ compensation insurancegives benefits to your employees if they get a work-related injury or illness. It can help cover their:
- Medical expenses
- Ongoing care costs
- Disability benefits
- Lost wages
Employers in most states are required by law to have workers’ compensation insurance.
Commercial Umbrella Insurance
Commercial umbrella insuranceextends the limits of some of your liability insurance policies. So, if there’s an expensive claim that exceeds your policy limit, commercial umbrella coverage can help pay the difference if it’s a covered cause of loss.
You can typically buy a $1 million or $2 million umbrella policy for a few hundred dollars. Making this investment now can be worth it if you’re faced with thousands of dollars later from a claim.
Additional Liability Insurance Coverage for Small Businesses
To help protect your business from more of the risks you face, consider adding these types ofbusiness liability insurance coverage:
- Business Owner’s Policy (BOP)
- Business income insurance
- Business property insurance
- Business flood insurance
- Bonds for small businesses
How Much Does Liability Small Business Insurance Cost?
Insurance companies look at several factors when determining the cost of small business liability insurance. This can include your:
- Policy details, like coverage limits and deductibles
- Business industry
- Location
- Employee size
Our customers pay an average of $805 a year, or about $67 a month, for general liability insurance.1 But because every small business is unique, your actual cost may be different. The insurance cost for a startup business may be different from an LLC’s insurance cost.The best way to find out your business’ cost is to get an insurance quote.
Why Do You Need Liability Insurance for Small Businesses?
If you don’t have liability insurance, you’ll have to pay for claims or lawsuits out of pocket. This can include:
- Fines
- Criminal penalties
- Lawsuits if your business doesn’t meet state requirements
You can learn more about liability insurance for a small business by asking an insurance agent or professional these seven questions:
- What businesses need workers’ compensation insurance in my state?
- Do all employees need workers’ compensation?
- Does my liability insurance protect my business operations in other states?
- Do I needgeneral liability insurance for my small business that I run out of my home?
- What are the minimum limits for liability insurance I need?
- Can I increase or decrease my liability insurance premiums throughout the year?
- How much liability insurance do I need?
When you’re ready to get a liability insurance quote for your small business, you can work with an independent insurance agency or an insurance company like ours. Our specialists are here to help you. Whether you’re looking to discuss the cost ofcommercial general liability insurance or need help with a claim, we’ve got your back.
Why Choose The Hartford for Small Business Liability Insurance?
We’re an insurance company backed by more than 200 years of experience. We’ve helped over 1 million small business owners get the protection they need and we’re here to help do the same for you. Our specialists regularly earn high customer claims ratings and reviews.* And our company was recognized as a World’s Most Ethical Company® 14 times by Ethisphere.2
Our dedicated team is here to help youget small business insurance coverage you need. Our specialists can walk you through general liability insurance costs, workers’ comp benefits and any other questions you may have. Find outwhat is the best liability insurance for small business and what your insurance cost will be by getting asmall business quote today.
Last Updated: November 20, 2023
1 Premium amounts presented are based on monthly premium paid by The Hartford’s Small Business customers between 1/1/22 and 9/14/23 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.
2 “World’s Most Ethical Companies” and “Ethisphere” names are registered trademarks of Ethisphere LLC.
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