Liability Insurance Cost

• Premiums for liability insurance vary widely depending on the size of the business (in square footage and/or payroll), the risks involved and the exact type of coverage. A commercial liability policy for a home-based child care business runs $350-$700 or more a year, according to the National Network for Child Care^[1] . Professional liability coverage for a photographer runs $1,000-$1,500 annually, according to the Professional Photographers of America.

• Basically, general liability insurance covers medical or other costs if someone or their property is injured at your place of business, and legal expenses if you are sued for these liabilities. A general liability policy can also cover product liability, which is needed if you manufacture or assemble a product that could cause harm in any way. Product liability insurance may be sold separately, and the cost depends heavily on whether you?re selling soft rubber balls or high-powered gas mowers.
• Professional liability insurance covers you if someone claims you failed to properly perform your duties or services. This type of policy is usually purchased independently of general liability insurance. AllBusiness.com^[2] describes the different types of liability insurance, and offers guidelines for insuring a home-based business.
• The Entrepreneuers' Help Page^[3] calls general liability insurance "as close to a must have as you may get when operating a business," and presents an overview of the common types of insurance needed by most small companies.

• Ask your insurance agent about liability coverage for your type of business. If you don't have an agent, Hoovers.com gives links to companies registered to sell liability coverage. Or check with your state insurance department for a list of registered companies in your area. The National Association of Insurance Commissioners gives links to state offices^[4] and a way to search for financial details and complaint histories for specific firms.
• Online quotes are available from NetQuote.com^[5] and MostChoice.com.

1.  www.nncc.org/Business/cch.liability.html
2.  www.allbusiness.com/finance/insurance-liability-insurance/2601-1.html
3.  www.tannedfeet.com/business_insurance.htm
4.  www.naic.org/state_web_map.htm
5.  www.netquote.com/?ProductCategory=Business&NQID=12170&Status=G_GB00259_business+liabili...

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