General liability insurance is designed to protect a business from claims concerning bodily injury, property damage and advertising injury occurring to third parties (I.e your clients). It’s a crucial policy for any business to have, but many business owners worry about the expense of such coverage. 

Understanding what influences your general liability insurance rates can help you keep those rates low. On average, general liability on its own costs only a small amount of money per month. This is relatively affordable for insurance, but it often comes in bundles with other important policies. Therefore, you don’t want any benefit within your portfolio to disproportionately influence the cost of your benefits. 

Factors that Influence General Liability Rates 
1 Location 
Different states, and different areas within those states, face different average liability claims costs. This is due to general property and medical costs in the area, population, cost of living and the number of claims that usually occur in the risk group. 

2. Size of the Business 
Larger businesses tend to pay more for general liability insurance. This is because the more locations, clients and employees means higher risks when it comes to accidents and lawsuits. Larger businesses are, unfortunately, much more likely to be seen as easy targets to sue, because they might be those who would be expected to pay significant amounts of money, 

3. Industry 
The industry of the business can also impact general liability insurance costs. Certain industries are at higher risk of liability claims. Businesses that host guests or manufacture products, for example, are therefore much more likely to see bodily injury claims lodged by their customers. Therefore, they often have higher risks present that could proportionally drive their rates up. 

4. Coverage Limits 
As with other types of insurance, general liability premiums vary depending on the amount of coverage. Most of these policies come in millions, starting at $1 million in coverage for claims per policy term. But every business is different. Your business may need different liability limits than the business across from you. 

5. Bundling and Discounts 
You can often save money by bundling general liability with other crucial coverages. A business owners policy (BOP) combines general liability and property damage insurance into one comprehensive policy for small businesses. This policy can also be adjusted to add coverages such as professional liability or Directors & Officers insurance, too, so it will offer a comprehensive level of coverage overall. 

Be sure to ask your agent about discounts your business may qualify for. Although business insurance can grow to be expensive, going without is even more of a risk and can result in thousands or even millions of dollars in lawsuits and other accident costs. Your agent will gladly work with you to determine the precise amount of benefits that are customizable to your advantage.