General liability insurance is essential coverage for all businesses irrespective of their size. Although it is not compulsory in Minnesota, getting one can protect you from a range of costly incidents. Therefore, as a small business owner in Minnesota, you should consider getting general liability insurance for financial and legal reasons.
This article will explain general liability insurance and how it works in Minnesota.
CoverWallet is an online broker backed by Aon, an American insurer. As an online broker, CoverWallet does not sell any policies of its own. Instead, the organization works to help business owners find online prices that match their business. With the website, you can also compare insurance policies and claims processes to make informed decisions for your purchase. Plus, you can manage your existing insurance plans using the website. In addition, coverwallet has a section dedicated to information and resources about general liability insurance.
Next insurance is your best bet for quick insurance coverage. Next insurance provides fast online insurance, which is a great solution when you need to show immediate proof of insurance. It allows you to request an online quote and tailors the coverage to your industry. The good news is it all of the steps take just a few minutes. Asides from general liability insurance, Next Insurance also provides professional liability insurance, commercial auto insurance, and workers’ compensation insurance.
Nationwide insurance started in 1926, with the name Farm Bureau Mutual Automobile Insurance Company. As they tried to expand coverage to all states, they changed their name Nationwide in 1955. Today, they are one of the best options you have in Minnesota.
We selected Nationwide as our best overall because the company focuses on simple, straightforward insurance solutions. As such, they are the ideal insurance company for businesses with high-risk, general liability needs. Besides, Nationwide has an A++ Superior rating for financial stability from the AM best.
biBERK is a small business insurance company that assists small business owners in terms of insurance. The insurance company is a subsidiary of Warren Buffett’s Berkshire Hathaway Insurance Group, with over 40 years of experience and over 100,000 satisfied customers. When you use the company’s service, you could save up to 20% on general liability insurance as a startup.
BiBERK has a rating of 4.9 out of 5 stars based on customer reviews. It also has an A- rating from the BBB. Most of its customers believe they have excellent customer service.
Hiscox is a leading specialist insurer in the United States with a long history of protecting businesses. The provider takes pride in providing fast and affordable coverage for small businesses all over the US.
The company provides general liability insurance for businesses across different industries in Minnesota. They have customized services for various clients in architecture and engineering, beauty, commercial maintenance, consulting, fitness, health, home services, marketing, property, therapy, and retail industries.
To get a quote, all you need is to check their website. Hiscox will provide you with a quick and free quote in minutes to put Hiscox’s services at your disposal. They have an A rating from AM Best and Standard & Poor’s for their financial strength.
Simply Business is a digital brokerage firm specializing in serving small businesses. What sets them apart is that they partner with several reputable carriers that have solid financial strength ratings and tend to offer low-cost coverage. That makes it easy for you to find the cheapest general liability insurance quotes with them.
After submitting your information, Simply Business will provide several quotes from partners that they work with. Many of their carrier partners may not be well-known but offer great affordable quotes that you wouldn’t be able to access otherwise.
Getting and comparing several quotes online are fast and simple. Within 10 minutes you will find the cheapest one for you.
Simply Business also has a great customer satisfaction rating on trustpilot.
Commercial liability insurance (or commercial general liability insurance or business liability insurance) protects your Minnesota company from financial loss resulting from claims of injury or damage caused by you or your employees to others.
The following are some instances that are beyond your general liability insurance.
General liability insurance is not required in Minnesota for businesses because the state is a modified no-fault state. That means, if someone is more than 51 percent to blame for an incident or accident, they cannot collect anything from you or your business. However, having general liability insurance isn’t a bad idea in Minnesota. That’s because it protects you further as long as the person suing you hasn’t waited past the statute of limitations. Personal injury claims have a 6-year statute of limitations for negligent conduct and a 2-year statute of limitations for intentional conduct. For negligence or strict liability suits, the product liability statute of limitations is four years.
The following are some reasons why you need general liability insurance for your business in Minnesota.
The cost of liability insurance in Minnesota typically varies between insurance companies. Most companies arrive at their liability insurance rates using the following factors:
In most cases, insurance rates are calculated per $1,000 based on one or more factors mentioned above.
That said, a typical small business in Minneapolis can expect to pay between $300 and $5,000 per year for general liability insurance. The final cost of liability coverage will differ significantly from one business to the next based on the SIC code or the insurance company’s classification system for GL rating. Additional factors used to calculate insurance costs include the nature of your business, its physical location, prior claims experience, and the number of years it has been in operation.
The following tips will help you get more affordable general liability in Minnesota.
Like we have said earlier, the Minnesota state laws does not compel you to carry general liability insurance. However, certain businesses like construction companies need to show proof of their general liability insurance before getting contracts.
Unfortunately, this is not as easy as it sounds, as most insurance companies do not like offering coverages to construction companies. That is because construction jobs come with a higher level of risk. If you own a construction company in Minnesota, you might have to speak with an insurance broker to discuss your options.
However, keep in mind that your premium as a construction company will come at a higher price. On average, you should be looking at 2,000 dollars above annually for your general liability policy.
Minnesota is not one of the best places to start a business in the US. According to Business Insider, Minnesota is 37th out of the 50 states in the US when doing business. That means you might find insurance policies cheaper here than you would in other states. In addition to your general liability insurance, you should consider getting a few different types of insurance policies. Small businesses in Utah must have workers’ compensation insurance and commercial auto insurance. They are both required by Utah laws. Professional liability insurance is also necessary if your company provides advice and services to its customers. Lastly, almost all small businesses are conducting their business digitally nowadays, which makes cyber insurance necessary to protect your business from data breaches and hacks.
Thang TruongThang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.
