Posted on May 19, 2014

How To Get The Best Rate On Your General Liability Policy

In today?s tough economy finding ways to save money on commercial insurance takes top priority. Business owners want to fully protect themselves while at the same time meeting tight budgetary constraints. Finding the best rates for general liability policies varies because each specific industry has its own level of risk that requires different underwriting policies and rates. Additionally, the rate for each state also differs so there is no hard and fast rule to general liability pricing.

With that in mind, here are five tips to consider when shopping for the best rate for your general liability policy.

  1. Find the right insurance broker. Most broker agencies specialize in different business insurance needs. Insurance professionals with expertise in general liability coverage are most likely able to better assist clients in providing the appropriate type and amount of insurance with the best savings.

  2. Evaluate general liability coverage carefully. After you?ve found the right insurance broker expert, they will assist you in determining which coverage is appropriate for your industry. Liability coverage provides protection for claims of property damage as well as bodily, advertising and personal injuries. Each specific industry has its own unique risks and requirements for coverage. Companies realize savings when they do not add coverage that isn?t necessary to their business.

  3. Lowest price doesn?t always mean the best coverage. When shopping for general liability insurance, it isn?t always the lowest quote that is the best for your company. Typically, insurance carriers that offer the lowest prices might not provide the same amount of coverage or service. They may also cut corners on paying claims so be sure to thoroughly understand the pricing structure being offered as well as the policy terms.

  4. Deductibles can change the amount of premiums. Often, maintaining a higher deductible can also save on general liability costs. While it will reduce the monthly premiums due, it will increase the amount needed to pay for a claim. Companies that choose a higher deductible may want to consider opening a business savings account and keep that deductible amount available when and if a claim occurs.

  5. Overall policy pricing can vary from company to company. The cost of general liability varies based on industry, revenues, experience, number of employees, location and a host of other risk factors. Always be sure to compare quotes received from your broker and make sure that the proposal is based on accurate information.

General liability insurance is a necessity for most businesses so finding the best policy with the right pricing is important. When comparing different insurance carriers, always make sure to check the coverage amounts, limits and deductibles so that you have an accurate picture of the policy pricing and terms.

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