What Is Small Business Liability Insurance?
Small business liability insurance helps cover claims for:
Bodily injuries
Property damage
Financial loss due to error or omission
Every small business faces unique risks. We’re here to protect you from them with small business insurance that helps you focus on running a successful operation.
To learn more about small business insurance options, get a quote.
What Does Small Business Liability Insurance Cover?
Small business liability insurance includes several different types of coverage that you should think about in your risk management plan. Be aware that small business insurance requirements vary from state to state, such as workers’ compensation insurance or commercial auto insurance. You may need a certificate of insurance to 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 insurance helps cover claims that your business has caused bodily injury or property damage to another person. It can also help cover claims by perpetrators of crimes such as libel and defamation. This coverage can help pay for legal fees and claims that may arise during normal business operations.
Business Car Insurance
Company auto insurance, or commercial auto insurance, helps protect you and your employees on the road if you drive a company vehicle for business purposes. It can help cover claims for personal injury and property damage as a result of an accident involving your business.
Professional Liability Insurance
Professional indemnity insurance helps protect your business against liability claims that it made a mistake in the professional services it provided. It is also known as errors and omissions insurance. This small business professional liability can help you pay:
Defense costs
Attorney fees
Judgments
Settlements
Workers Compensation Insurance
Workers’ compensation insurance provides benefits to your employees if they suffer 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 insurance extends the limits of some of your liability insurance policies. So if there’s a costly claim that exceeds your policy limit, commercial umbrella coverage can help pay the difference if it’s a covered cause of loss.
You can usually buy a $1 million or $2 million umbrella policy for a few hundred dollars. Making this investment now may be worth it if you face thousands of dollars in claims later.
Additional liability insurance for small businesses
To help protect your business from the multiple risks you face, consider adding these types of liability insurance:
- Business Owner Policy (BOP)
- Business income insurance
- Business property insurance
- Business flood insurance
- Small Business Bonds
How Much Does Small Business Liability Insurance Cost?
Insurance companies consider several factors when determining the cost of small business liability insurance. This may include your:
Policy details such as coverage limits and deductibles
Business industry
Location
Size of employee
Our customers pay an average of $805 per year for general liability insurance, or about $67 per month.1 However, because every small business is unique, your actual costs may vary. The cost of insurance for a startup business can differ from the cost of LLC insurance. The best way to find out the costs of your business is to get an insurance quote.
Why Do You Need Small Business Liability Insurance?
If you don’t have liability insurance, you’ll have to pay out of pocket for damages or lawsuits. This may include:
- Fines
- Criminal penalties
- Lawsuits if your business doesn’t meet state requirements
You can learn more about small business liability insurance by asking your insurance agent or professional these seven questions:
Which businesses need workers’ compensation insurance in my state?
Do all employees need employee benefits?
Does my liability insurance cover my business operations in other states?
Do I need general liability insurance for my small business that I run from home?
What are the minimum liability insurance limits I need?
Can I increase or decrease my liability insurance premiums during the year?
How much liability insurance do I need?
When you’re ready to get a quote for liability insurance for your small business, you can work with an independent insurance agency or insurance company like ours. Our specialists are here to help you. Whether you want to discuss the cost of commercial general liability insurance or need help with a claim, we’ve got you covered.
Why Choose Hartford for Small Business Liability Insurance?
We are an insurance company with 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 you do the same. Our specialists regularly receive high ratings from customer claims and reviews.* And our company has been recognized 14 times by Ethisphere as the World’s Most Ethical Company®.2
Our dedicated team is here to help you get the small business insurance you need. Our specialists will guide you through general liability insurance costs, employee benefits and other questions you may have. Find out what the best small business liability insurance is and what your insurance costs will be by getting a small business quote today.
Last updated: November 20, 2023
1 Premium amounts shown are based on monthly premiums paid by The Hartford’s Small Business customers between 1/1/22 and 9/14/23 for 12-month policies. Premiums are derived from a number of factors specific to your business and may vary.
2 “World’s Most Ethical Companies” and “Ethisphere” are registered trademarks of Ethisphere LLC.
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