Navigating General Liability Insurance Premium Costs: Affordable Protection for Your Middle Market Business

general liability insurance premium costs

Hi, I’m Gordon Coyle, and today we’re going to tackle an essential topic that impacts your bottom line: general liability insurance premium costs.

In this video and post, we’ll explore how to navigate these costs and find affordable protection for your middle-market company.

General liability insurance provides crucial protection against potential claims and lawsuits, safeguarding your business’s financial stability.

But how can you ensure this protection remains affordable without compromising coverage?

Here are a few key ideas that you want to consider for your General liability insurance premium costs:

  1. Assess Your Business Risks
    Start by evaluating the specific risks associated with your industry and your specific operations. By understanding your risk exposures, you can better determine the coverage limits you need and avoid overpaying for protection you may not need.
    Identifying your unique risks allows you to tailor your insurance needs effectively. Now, I’m not saying that it makes sense to skimp on limits of protection, but if your business has changed over the years – maybe revenues are down, or your operations are less hazardous than in the past, or your contracts don’t mandate certain limits, there may be good reasons to reduce protection.
  2. Shopping for coverage
    Many business owners will regularly shop out their insurance program and may have seen some success in the past of bidding one broker against another. I’ve done a video on the topic of quoting or shopping that you can watch here: Why Quoting or Shopping Your Commercial Insurance is Ineffective

I’m not saying that comparing rates and premiums doesn’t make sense.

What I am saying is that the traditional approach of engaging 2 or 3 brokers to shop your general liability policy will not produce the results you’re looking for. There is a more strategic way to do it which I describe in this video and I’m happy to assist you with it.

  1. Evaluate Deductibles:
    Deductibles can play a significant role in determining premium costs. For larger firms, high deductibles (usually $25,000 and higher) may be available and will result in lower premiums, but remember to assess your business’s financial capacity to handle higher out-of-pocket expenses in case of a claim. Finding the right balance between deductibles and premiums is key.
  2. Consider Risk Management Strategies:
    Insurers will reward businesses that actively manage their risks, with lower premiums. Implementing robust risk management strategies, such as maintaining good housekeeping, preventing slip and fall risks in and around your premises, conducting product testing and more can lower your insurance premiums. Showcasing your commitment to risk reduction usually will lead to cost savings.
  3. Analyze your claim history:
    The premiums you pay for General Liability insurance include a rating factor for your claim history. If your claim history over the past five years has been superior you should be in a good position to negotiate a premium reduction from your insurer. Conversely, if your loss experience is above average you should be taking steps to reduce claim frequency and severity. Talk to your insurance broker about reviewing your loss runs and how to strategize an approach with your insurer.
  4. Consult a Business Insurance Expert:
    When it comes to navigating general liability insurance premium costs, seeking guidance from an insurance professional is invaluable. This means working with an expert in business insurance, not a generalist that does “all forms of insurance”. To achieve the best results you need a skilled and experienced broker to roll up their sleeves and work with you to find the most cost-effective solutions tailored to your business’s needs.

Ready to protect your business affordably without sacrificing coverage?

Contact me, and let’s chat.

I work with middle-market business owners across the U.S. and look forward to speaking with you to see if we’re a good fit for your particular circumstances.

Affordable general liability insurance is within reach!

By assessing your risks, strategically going to market, implementing risk management strategies, and seeking professional guidance, you can protect your business while keeping premiums in check.

Thanks and until next time stay protected and thrive in your business!

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