How much liability insurance does your business need?

Public liability insurance is not only beneficial for businesses to protect their assets, but it required in many states within the USA and countries around the world. Some typical examples of covered circumstances are: a third-party slipping on a wet floor on your premises or damaging their car being damaged at your mechanic shop due to an accident by one of your employees, etc.

So exactly how much coverage does your business need?

The amount of public liability insurance coverage depends on the type and size of your business. If you run a small home business then you will only need a smaller deductible to cover yourself. But if you run a big business with hundreds of people then your deductible should be large enough (a few million dollars) to cover any probable claims. Even though the deductibles are high, your premiums should be pretty reasonable.


Your premium depends on what type of business you operate. These premiums are rated against the activity of the business. In general, your premiums are determined depending on your revenues. For some businesses, however, different factors may come into play to decide their premium. For a hotel that wants public liability insurance coverage, it may be decided based on the number of beds in the hotel.

External Resources:
Liability Insurance for Businesses
Third Party Liability Insurance