As a business owner, it’s important to protect your company and its finances. You’ve invested a lot of time and money into your business, so it would be a shame to put that at risk. Accidents can happen on and off the job site, so it’s critical to ensure you’re covered if such an event occurs.
Commercial general liability insurance is one measure you can take to prevent additional hardships and to protect your investments.
We elaborate on how commercial general liability insurance can benefit you and what the cost of such insurance might be.
Understanding the Cost of Commercial General Liability Insurance
What is commercial general liability insurance?
Commercial general liability insurance (CGL) is a type of insurance policy. It provides financial coverage to businesses and corporations for bodily harm, personal injury, and property damage that occurs on the company’s premises. Said injury or damage can also be a result of interacting with the business’s operations, equipment, or products.
How much does commercial general liability insurance cost?
Some business owners grimace at the idea of having to spend additional money to maintain the operation of their company. However, this extra cost can save you from thousands or even millions of dollars worth of legal fees in the long run.
The cost of CGL does vary depending on the insurance plan you decide on. There are several options when it comes to the level of coverage that your CGL can provide.
Some coverage levels focus primarily on the premises, which includes any worker injury that occurs on the property. Other levels extend to damages that are a result of finished products or services done off-site. Naturally, the latter will cost more, as your insurance coverage will need to have a greater reach.
Purchasing CGL can feel intimating due to the amount you can be insured for. If you are insured up to $1 million, most may assume the monthly rate will be incredibly high. However, the average yearly amount that companies pay is around $450. Therefore, when broken down into monthly payments, it can seem much more manageable.
How much should I be paying?
As the Insurance Bureau of Canada notes, you want adequate coverage without being over-insured and overpaying. Some aspects to consider when looking into CGL are:
- The value of your property
- Your potential liability exposure
- Past losses
Speaking with an insurance broker regarding commercial general liability insurance can help you determine the level of coverage you need and gain a better understanding of the cost.
Lakeview Insurance Brokers Ltd. has been a highly dedicated member of the Independent Brokers Association of Albert and has been family-run since 1979. Our brokers take the time to ensure you get the best policy that suits your needs. Contact us today to get started at 403-287-2521 or send an email to [email protected].