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.
- Top 6 providers of general liability insurance in Minnesota
- What does Minnesota general liability insurance cover?
- Is general liability insurance required in Minnesota?
- Why Minnesota small businesses should get general liability insurance
- How much does general liability insurance cost in Minnesota?
- How to find cheap general liability insurance in Minnesota
Top 6 providers of general liability insurance in Minnesota
- CoverWallet: Best for comparing quotes across insurance companies
- NEXT: Best for Fast Insurance
- Nationwide: Best Overall
- biBERK: Best for affordable prices
- Markel: Best for claims
- Hiscox: Best for professional services
CoverWallet: Best for comparing quotes across insurance companies
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: Best for fast quotes
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: Best Overall
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: Best for affordable prices
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.
Markel: Best for claims
Markel insurance is a well-known carrier with 90 years of experience in the insurance industry. The company has good ratings on A.M. Best and the BBB regarding financial strength. The BBB has accredited them Since April 26, 1931, and they have an A (excellent) financial rating and a stable outlook. You can check in to make claims online or via phone and mail 24/7 without any restrictions. Unfortunately, you cannot get a quote directly from their website. You need to see one of their insurance brokers to get a quote. However, the good news is that they’ll refer you from the website.
Hiscox: Best for professional services
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.
What does Minnesota general liability insurance cover?
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.
- Bodily Injury: That is physical damage to someone that is not an employee at your place of business. This also includes injuries caused by you or an employee at a client’s home or workplace.
- Personal Injury: This includes libel, slander, infringement of copyright, invasion of property or privacy, wrongful eviction, false arrest, and other similar acts that harm a person’s reputation or rights.
- Legal Defense and Judgments: Your coverage also covers your legal defense and judgment if things go south. You should note that this generally excludes punitive damages for willful or negligent misconduct.
- Property Damage: This includes damages to another person’s property caused by you or an employee while conducting business.
- Advertising Injury: This includes losses incurred as a result of your advertising misbehavior.
What does general liability insurance not cover?
The following are some instances that are beyond your general liability insurance.
- Professional blunders: Your general liability insurance will not protect you from lawsuits arising from professional errors, such as unsatisfied services and missed deadlines. To cover such damages, you’ll need professional liability insurance, also known as errors and omissions insurance. Learn more at the best professional liability insurance companies.
- Injuries to employees: Your general liability insurance will also not cover you from costs arising from employee injuries or illnesses. What you need is a workers’ compensation insurance is a policy. It covers all employees’ medical expenses, physical therapy, and lost wages. Learn more at the best workers comp insurance companies and the cheapest workers comp insurance companies.
- Property damage to a business: A business owner’s policy, which combines general liability and commercial property insurance, can assist in covering the cost of replacing stolen business property. It may also pay for repairing or replacing commercial property damaged by fire or certain weather events. Learn more at the best BOP insurance companies.
- Lawsuits for discrimination against employees: Your general liability insurance is also limited in this regard. To cover the costs of lawsuits resulting from claims of harassment, discrimination, and wrongful termination, your business needs employment practices liability insurance (EPLI).
Is general liability insurance required in Minnesota?
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.
Why Minnesota small businesses should get general liability insurance
The following are some reasons why you need general liability insurance for your business in Minnesota.
- Ease of running your business: You can run your business without worrying about certain risks and incidents if you have a good policy in place. To be more specific, a general liability insurance MN can serve as a survival plan to help you stay in operation even if a court judgment is rendered against you. Furthermore, in such a case, the insurance company will litigate on your behalf and pay for all legal defense fees up to the policy limits.
- Protection for your business assets: Without coverage, your tools, bank accounts, vehicles, properties, and other assets are vulnerable and could be seized to settle claims in court or through out-of-court settlements. Remember that several businesses have gone bankrupt after having courts took their assets. If you continue to be ignorant or knowingly ignore general liability insurance, you risk massive losses and the loss of your entire business.
- Gaining the trust of potential clients: In this day and age, when information is so easily accessible via the Internet, clients have learned to do their homework before hiring. Also, some landlords in Minnesota check to see that you have insurance before renting or leasing out their place to you. So, if you do not have this coverage, you might be at a disadvantage compared to your competitors who do.
How much does general liability insurance cost 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:
- The total income of your business
- The total payroll for employees and owners
- The square footage of the premises
- Subcontractor exposures (if applicable).
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.
Learn more the cost of general liability insurance in general.
How to find cheap general liability insurance in Minnesota
The following tips will help you get more affordable general liability in Minnesota.
- Review all insurance policies annually and keep track of any changes that may affect your coverage costs. For example, the addition or reduction of employees, clients’ product offerings or inventory; building modifications; or changes in state regulations could all have an impact on your premiums.
- Learn how plans differ to ensure that you purchase the best policy for your specific business at a competitive price.
- Claim a tax deduction for your fire, casualty, and burglary insurance premiums.
- Avoid purchasing policies that overlap. Check the terms carefully to ensure that you are not covered for the same item under two different policies. Doing this will also ensure that you are not missing out on essential coverage in other areas.
General liability insurance for contractors 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.
Learn more about general liability insurance for contractors, the cost, and the best providers of contractors general liability insurance.
Small business insurance in Minnesota
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.