5 Tips for Purchasing General Liability Insurance

Having the appropriate level of insurance coverage for your business isn't just a good idea -- it can be crucial if you ever find yourself in a serious situation or pending lawsuit. Here are five tips for purchasing general liability insurance. Keep these in mind when you need to purchase a policy.

Tip #1: Have a Good Idea of Your Risk Level

Every business has some sort of risk level. For example, a retail store has the risk that an employee might leave out a ladder and cause a customer to trip and become injured. Likewise, a social media expert runs the risk of accidentally ruining a client's reputation and getting sued for thousands of dollars. Know your particular risk level before purchasing a policy. Ensure that it applies to your specific industry.

Tip #2: Know How Much Coverage You Need

Your company's industry will often determine how much coverage you need. For example, most general contractors need more coverage than a graphic designer would. They also likely need different types of protection. Do a bit of research or ask your agent to find out what is common for other companies in your same niche.

Tip #3: Determine Whether You Need a BOP or Just Liability Coverage

It's also important to determine whether you need a Business Owner's Package (BOP) or just a general liability insurance policy. BOPs include a standard amount of liability coverage, but also have the added benefit of including a property damage provision. In some cases, this type of bundled coverage is much more cost-effective than purchasing each policy separately. Ask your agent whether a single option, or multiple policies, is right for you.

Tip #4: Don't Be Afraid of Buying Insurance

It may sound silly, but some small business owners are actually afraid of purchasing coverage. They put the process off as long as possible. The truth is that the application is often quite simple and the premiums are often more affordable than you would think. Plus, your agent will help guide you through a few simple questions to determine how much you actually need. It really is that easy!

Tip #5: Review Your Coverage on an Annual Basis

As your business grows, your needs will change. Make sure to sit down with your Baton Rouge general liability agent and review your coverage on an annual basis to ensure you have the exact amount you need.