Best General Liability Insurance For Small Business of U.S - 2023

Best General Liability Insurance For Small Business of U.S - 2023

The following table outlines key details of the top general liability insurance providers for small businesses in the U.S. for 2023, featuring information on online quote availability, complaint levels, and AM Best financial strength ratings.

Allstate

• Online Quotes: Yes
• Complaints: No
• AM Best Financial Strength Rating: A+ (Superior)

Allstate, known for home and auto insurance, excels in commercial liability coverage with a stellar track record. Their online platform offers tailored options for various industries, ensuring small businesses are well-protected.

CNA

• Online Quotes: No
• Complaints: Very Low
• AM Best Financial Strength Rating: A (Excellent)

CNA stands out with over 300 coverage types, providing comprehensive solutions for businesses in retail, restaurants, construction, and technology. With a low complaint rate, CNA is a reliable choice for diverse business needs.

Farmers

• Online Quotes: No
• Complaints: No
• AM Best Financial Strength Rating: A (Excellent)

Farmers offer a wide range of business insurance types, providing assistance through their agents and unique offerings like MySafetyPoint workplace safety resources. Their commitment to customer satisfaction is reflected in a spotless record of no complaints.

Frankenmuth

• Online Quotes: No
• Complaints: No
• AM Best Financial Strength Rating: A (Excellent)

Frankenmuth stands out for its customized, business-specific insurance packages tailored for retail stores, manufacturing, and small offices. Operating regionally in 15 states, they collaborate with local independent agents to ensure personalized coverage.

The Hanover

• Online Quotes: No
• Complaints: No
• AM Best Financial Strength Rating: A (Excellent)

The Hanover caters to a broad spectrum of businesses, offering excellent coverage with no reported complaints. Local independent agents provide access to their online library, offering valuable small business insurance tips and resources.

Westfield

• Online Quotes: No
• Complaints: No
• AM Best Financial Strength Rating: A (Excellent)

Operating in 21 states, Westfield impresses with low complaint rates and a unique SizeUp Competitive Analysis Tool. This tool allows small business owners to compare vital metrics in their area, enhancing their understanding of the competitive landscape.

Markel

• Online Quotes: Yes
• Complaints: Very Low
• AM Best Financial Strength Rating: A (Excellent)

Markel's insurance solutions cater to a diverse range of small businesses, from personal trainers to medical offices. With very low complaint levels and helpful online resources, Markel ensures businesses receive tailored coverage and support.

Nationwide

• Online Quotes: Yes
• Complaints: Very Low
• AM Best Financial Strength Rating: A+ (Superior)

Nationwide stands out with its low complaint levels, online quotes, and customizable small business insurance policies. While excelling in commercial liability insurance, it is important to note potential elevated complaints related to commercial property insurance.

Chubb

• Online Quotes: Yes
• Complaints: Very Low
• AM Best Financial Strength Rating: A++ (Superior)

Chubb offers a superior combination of low complaints and high financial strength, making it an appealing choice for businesses seeking general liability insurance. Their Business Owners Policy (BOP) allows for extensive customization, covering various valuable aspects beyond standard liability.

Travelers

• Online Quotes: No
• Complaints: Very Low
• AM Best Financial Strength Rating: A++ (Superior)

As the largest seller of commercial liability insurance, Travelers boasts very few complaints and offers a range of online services through insurance agents. Their risk control resources and online services contribute to a robust small business insurance offering.

What is General Liability Insurance?

General Liability Insurance, also known as business liability insurance or commercial general liability insurance, is a crucial component of small business policies. This type of insurance provides protection against potential financial losses resulting from accidents, injuries, or property damage inflicted upon others.

Beyond physical harm, it also covers issues such as copyright infringement, reputational harm, and advertising injury. By offering a broad scope of coverage, General Liability Insurance helps businesses navigate a variety of risks and safeguards their financial well-being in the face of unforeseen events.

How Does General Liability Insurance Operate?

General Liability Insurance operates in five steps: identify risks, buy a policy, run your business, process claims, and consider policy limits for risk management.

Coverage Identification

Identify potential risks and liabilities your business may face, such as bodily injury, property damage, advertising injury, copyright infringement, and reputational harm.

Policy Purchase

Purchase a general liability insurance policy that aligns with your business needs. When buying the policy, specify coverage limits, including per-occurrence and aggregate limits.

Business Operations

Carry out your business operations as usual. In the event of an incident where a third party claims injury, property damage, or other covered issues, notify your insurance provider promptly.

Claims Processing

If a covered claim is made against your business, your general liability insurance will kick in. The insurer will assess the claim, cover medical costs, property repair or replacement, legal expenses, and other associated costs, up to the specified policy limits.

Policy Limits Consideration

Be aware of the per-occurrence and aggregate limits in your policy. The per-occurrence limit represents the maximum payout for a single claim, while the aggregate limit is the total amount the insurer will pay for all claims during the policy period. Understand these limits to gauge the level of financial protection your business has in case of multiple claims or a significant incident.

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What is the Cost of General Liability Insurance?

The cost of General Liability Insurance varies, with a median of $42 per month. However, prices can differ based on factors like business risk and coverage needs. Low-risk businesses may find more affordable options, such as Next offering policies starting at $11 per month and Thimble at $17 per month.

It's crucial to note that individual circumstances, coverage limits, and location influence the final cost. For accurate and current pricing, it is advisable to contact insurance providers directly for personalized quotes tailored to specific business requirements.

Do Businesses Need Liability Insurance?

Yes, businesses are strongly advised to have liability insurance, even though it may not be a legal requirement in most cases. General liability insurance provides essential protection against potential financial losses arising from third-party claims for property damage, bodily injury, or other liabilities. While not mandated by law, clients, contractors, or landlords often require businesses to carry this insurance as a safeguard against unforeseen circumstances, making it a crucial risk management tool for any business entity.