How much does business liability insurance cost in South Carolina?

I’m starting a small business in South Carolina and need to purchase business insurance. How much will my business liability insurance cost in South Carolina? What does general liability insurance cover, and how can I find affordable coverage? 

Answer:

Business liability insurance, or commercial general liability (CGL) insurance, is one of the basic building blocks of any small business insurance program in South Carolina. It protects you from negligence claims and lawsuits. 

So if your business is responsible for damaging someone’s property (e.g., a waitress in your restaurant spills coffee on a customer’s laptop), or if someone is injured because of your business (e.g., a customer trips on a wet floor and breaks an ankle), your CGL policy helps you pay for the damage. It also helps you pay for your legal expenses if you’re sued. 

The cost of CGL insurance will vary significantly among businesses. On average, small businesses might pay between $400 and $1,000 per year, but it’s best to get a quote from an independent insurance agent to find out the true premium for your South Carolina business. Your premium depends on the unique characteristics and risk factors of your business. 

Simply stated, low-risk businesses pay less for business liability insurance than high-risk businesses. And how is that risk determined? Insurance companies look at a variety of factors, including the industry you’re in, the value of your business and assets, the number of employees you have, and the type of property you operate out of. 

You can assume that a business like a construction firm will pay more for CGL coverage than an accounting firm. That’s because, to oversimplify, the risk of injury to someone at a construction site is far greater than in an accountant’s office. 

Another factor that affects your cost is the amount of coverage that you need. A business that needs a $1 million dollar coverage limit will pay less than a business that needs $2 million or more in coverage. An independent insurance agent in South Carolina can help you determine how much coverage you need to adequately protect your assets. 

What does business liability insurance cover in South Carolina?

A: Business liability insurance in South Carolina protects your company’s assets and pays for claims that arise when someone gets hurt on your property or when property damage or injuries are caused by you or your employees in the course of doing business. It also covers the costs of your legal defense and any settlements or judgments that you must pay should an injured party sue you. 

Business liability insurance in South Carolina might also cover you for lawsuits related to false or misleading advertising, as well as libel, slander, and copyright infringement. It can be purchased on its own or can be included as part of a business owners policy (BOP). A BOP is a type of business insurance policy for smaller businesses that bundles property and liability insurance together into one comprehensive business insurance policy. 

A business liability policy has two major coverage components:

• Premises liability insurance: This covers third-party damage, injuries, or illnesses that occur due to an accident on your business property.
• Product liability insurance: This covers third-party damage, injuries, or illnesses caused by a defect in a product your company produces, sells, or promotes

Where can I find business liability insurance in South Carolina that fits my budget?

A: Insuring even small businesses can be complex. Your business insurance policies should be tailored to the type of business you have and the risks you face. South Carolina business liability insurance is just one of the types of coverage you need, and it is essential for protecting your assets from negligence claims and lawsuits. 

An independent insurance agent can work with you to assess your business risks and find the coverage you need to protect your business. You may need basic business liability insurance, as well as numerous endorsements or stand-alone policies to make sure that you are protected from all of your unique risks. 

Independent agents aren’t tied down to a single insurance company. A local agent can get quotes from multiple carriers, so you can make the best choice for your needs and budget.