Choosing the right amount of general liability insurance is an important decision for small business owners. Carrying too little coverage could leave your business financially exposed, while carrying the right limits can help protect your company from costly lawsuits.
Standard Liability Coverage Limits
Most small businesses choose liability policies with limits such as:
- $1,000,000 per occurrence
- $2,000,000 aggregate
This means the policy may cover up to $1 million for a single claim and up to $2 million total during the policy period.
These limits are common for many small businesses.
When Businesses May Need Higher Limits
Some businesses may need higher coverage limits, especially if they:
- Work on large projects
- Sign contracts requiring higher insurance limits
- Operate in higher-risk industries
- Work with government or commercial clients
Many contracts require $2 million or more in liability coverage.
Umbrella Insurance
Businesses needing additional protection may add commercial umbrella insurance, which provides extra coverage above general liability limits.
For example:
- General liability limit: $1 million
- Umbrella policy: $2 million
Total protection: $3 million coverage
Industry Risk Factors
The amount of liability insurance needed often depends on the industry.
Higher-risk industries include:
- Construction
- Contracting
- Landscaping
- Roofing
Lower-risk businesses may include consultants or office-based services.
Protecting Your Business Assets
If your business has significant assets, higher liability limits may help protect those assets from lawsuits.
An insurance professional can review your operations and recommend appropriate coverage.
Get a Liability Insurance Quote
If you’re unsure how much coverage your business needs, Upstate’s Choice Insurance can help.
We help businesses in South Carolina, North Carolina, and Georgia find the right protection at affordable rates.
Call 864-845-7500 today for a free general liability insurance quote.