How Much Commercial Liability Coverage is Enough?

Feature Photo by Henry Perks on Unsplash

Are you a business owner in the market for commercial liability insurance? If so, you probably have many questions. After all, it only takes one claim to paralyze your company. Your commercial liability coverage isn’t something to drop the ball on. But, don’t worry, here at Alliance Insurance Group, we have you covered. We have a wide range of insurance companies that we represent to provide you the best possible commercial liability and workers compensation protection, at the best possible price.

What is Commercial and General Liability Insurance?

Commercial General Liability is a broad type of insurance that is meant to cover all the unknowns that may come occur during its normal operations, specifically regarding bodily injury and property damage. So, if a client, or their property is harmed by your action, and they file a lawsuit against your business seeking damages, your liability insurance will protect you. Otherwise, your business will have to cough up any of the expenses related to out-of-court settlements or judgments against you. Depending on the circumstances, this can be more than enough to bankrupt a company.

But that’s not all that general liability will cover. It will also protect you and your business against expenses related to investigations, copyright claims, and other types of lawsuits filed against your business.

What Commercial Liability Insurance - Questions for Your BusinessQuestions About Your Business Should You Be Asking Yourself?


Photo by Harlie Raethel on Unsplash

Every company, and industry is different, and thus, will require different commercial and general liability coverage. So, what questions should you ask yourself to get a good idea on your required insurance?

Well, you should ask yourself:

  • How many employees do we have?
  • How high risk is the work that they do? (Are they construction workers or office workers?)
  • Given that risk, how expensive would a potential worker’s compensation claim be?

Ultimately, getting the right coverage comes down to risk management, and specifically, how forward-thinking you are being regarding the potential externalities that may come your way. Keep in mind that, as human beings, we tend to underestimate risk while overestimating reward. This can potentially be disastrous from a liability standpoint. Underestimating an unlikely, but costly, risk can potentially break your business.

Here’s a good example. The All-England Lawn Tennis Club, the tennis club that hosts the famous Wimbledon Tennis Championships, has paid for an insurance policy for the past 17 years that would protect the club in the event of a global pandemic. This means that they’ve paid out premiums for an event that was previously inconceivable to many of us. For the past 17 years, it would have been easy to think that it was a waste of money to pay for that policy, a worldwide pandemic was seemingly impossible until COVID-19. Now, thanks to nearly a decade of premiums on that insurance policy, the All-England Lawn Tennis Club will receive a payout of $141 million.

Now that’s proper risk management.

Go With Alliance Insurance Group

We understand this may be a confusing process at times. It’s also, given the potential risks of not having enough coverage, not something you’d like to get wrong. But, here at Alliance Insurance Group, we know Commercial and General Liability well. We can walk you through the entire process and make everything very easy. After getting a quote with Alliance, you can sleep easy at night knowing you have the perfect amount of coverage for you and your business. Because, let’s face it, every company is different. There’s no one-size-fits-all for general liability.

To get started on your quote, you can call our office, or visit our quotes page on our website, here.

Click here to get started with your Alliance Insurance Quote!