Small businesses play a significant role in the economy of Pennsylvania. In fact, there are 1,100,000 of them in Pennsylvania, representing 99.6% of the state's businesses. Small business owners will require the proper business insurance to safeguard their companies. Get a quote today to learn more about the small business insurance you require.
General Liability Insurance In Pennsylvania
General liability insurance, commonly known as business liability insurance, provides comprehensive protection against claims resulting from:
- Reputational harm
- Personal property damage
- Bodily injury
- Personal injuries like libel or slander
- Advertising errors
This policy may be purchased alone or as part of the Business Owners' Policy (BOP). It can assist in covering some costs, such as if your:
- Client leaves their personal belongings with you, which are afterwards damaged. Consequently, they sue you for its replacement.
- Competitor asserts that you violated their copyright by promoting your products.
- A customer is injured at your establishment and requires medical attention. Later on, they request that you pay for their medical expenditures.
- It is also crucial to know that customers might pursue claims against your company even if you committed no wrongdoing.
Other Types Of Business Insurance Offered In Pennsylvania
- Commercial Auto Insurance - This can safeguard your company if you or your employee are involved in a car accident while using a covered vehicle for business purposes. If your firm owns commercial vehicles, this policy can provide coverage.
If a car accident occurs on the job, commercial auto insurance can assist in covering property damage and medical costs.
- Commercial Property Insurance - If you own or rent property for your business, you must have commercial property insurance. This coverage can assist pay for repairs if the following causes damage to your building:
- Workers’ Compensation Insurance - Workers' compensation insurance protects your employees if they are injured on the job by providing them with access to medical care and aiding with the payment of their:
- Medical expenses
- Rehabilitation
- Lost wages
- Funeral costs
- Professional Liability Insurance - Professional liability insurance can assist in covering disputes involving:
- Misrepresentation
- Negligence
- Inaccurate advice
- Libel or slander
- Non-performance of professional services or professional services error
- Inadequate protection of personally identifiable information
Who Needs General Liability Insurance
As a contractor or small business owner, you must protect your livelihood with business liability insurance.
A single accident could end in a lawsuit that you are unable to defend yourself against. Having liability coverage that corresponds to your degree of risk is an excellent way to fight against this.
Before you may work for some companies or clients, you may be required to hold a particular amount of general liability insurance.
Cost Of General Liability Insurance In Pennsylvania
The amount of Pennsylvania commercial general liability insurance you need should be determined, as a general rule, by the type of business you operate or the goods you manufacture. The optimal revenue range for the majority of small businesses is between $500,000 and $1 million.
However, if your company is high-risk, such as the construction industry, or has a large volume of public engagement, such as a restaurant or retail store, you should consider expanding your coverage. Note that your homeowner's or renter's insurance has limited coverage for business liability and loss if you operate out of your house.
Quick Small Business Statistics In Pennsylvania
Pennsylvania’s 1.1 million small businesses make up over 99% of the businesses in the state. They collectively employ 2.5 million individuals. These small businesses are present across various sectors, including retail, education, professional services, construction, and so much more.
Below are some relevant statistics related to small businesses in Pennsylvania:
- There are currently 1.1 million small businesses operating in Pennsylvania
- Pennsylvania small businesses make up 99.6% of all businesses in the state
- Small businesses collectively employ 2.5 million or 46.3% of private employees
- In 2019, large banks reported issuing a total of $3.3 billion in loans to small businesses
- The professional, scientific, and technical services industry has the largest number of small businesses: 151,715. The construction industry closely follows with 120,543 small businesses
- 39.4% of businesses are women-owned; 48.2% of private employees are women
- 6.3% of businesses are women-owned; 4.9% of private employees are women
- 4.2% of businesses are women-owned; 6.9% of private employees are women
- 12.1% of businesses are women-owned; 16.6% of private employees are women
- Business employment in Pennsylvania grew by 7.6% from 1994 to 2018
- Earlier in 2022, the Pennsylvania Acting Insurance Commissioner announced that a loss-cost filing had been approved. It includes a 6.25% reduction in loss costs, leading to lower premiums that Pennsylvania businesses have to pay
Frequently Asked Questions
Here are frequently asked questions related to general liability insurance in Pennsylvania:
What are the three main sections of a CGL policy?
A standard commercial general liability (CGL) insurance policy has three main types of coverage that protect your business from financial loss due to damage or injury claims. These include:
- Bodily injury and property damage
- Personal and advertising injury
- Medical payments
The total coverage amount of a CGL policy depends on various factors, such as business needs, revenue, risks, and operational processes. Contact an insurance agent to get a quote.
Does the State of Pennsylvania require business liability insurance?
Pennsylvania state law requires businesses to provide workers' compensation insurance for all full-time and part-time employees. General liability insurance is not legally required but strongly recommended because it financially protects businesses from claims related to the following:
- Advertising or promotion errors
- Libel, slander, and similar types of personal injury
- Third-party bodily injury on commercial property
- Third-party property damage to the establishment
- Reputational harm or damage
General liability insurance may already be part of a business owner's policy. It may also be purchased separately.
What’s the minimum liability insurance for Pennsylvania businesses?
Small businesses range from solo entrepreneurs to organizations with almost 500 employees. Each situation is unique, so it’s best to talk to an insurance agent to determine the minimum liability insurance for your business.
Other Insurance Types
Contact Assured Standard to get a quote. You may also get in touch when you have inquiries about general liability insurance and other insurance types, and how they can protect your business.
