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6 Best General Liability Insurance in Pennsylvania for 2022

In 2018, the number of non-fatal accidents that occurred at your work locations in Pennsylvania was about 156,500. Interestingly, about 87% of these incidents happened at privately owned business outfits. As a business owner, an accident at your workplace can cause a lot of trouble. Such incidents may result in lawsuits and high recovery costs, which are frequently difficult to manage without insurance.   

Therefore, as a business owner in Pennsylvania, you must consider getting general liability insurance for financial and legal reasons. This article will show you what general liability insurance entails and the best companies where you can get one in Pennsylvania. 

The 6 best general liability insurance companies in Pennsylvania

CoverWallet: Best for comparing several insurance quotes online

CoverWallet is an online broker backed by Aon, an insurer with an AM Best rating of A. That means the company does not have its own insurance policies. Instead, the company offers online quotes from their several partners to help you compare and make the right selection. The information on the website will help you understand what types of insurance you need for your business and online claims processes. CoverWallet also provides general liability information and reading materials if you care to read for in-depth understanding. CoverWallet may be able to manage your pre-existing insurance policies. 

Here is a sample quote generated for a carpet cleaning company in Pennsylvania with four employees, an annual income of 500,000 dollars, and a yearly payroll of 260,000 dollars. 

Huckleberry: A good alternative for online quote comparison

Huckleberry is one of the newest companies that provide quality general liability insurance in Pennsylvania. As you will see on their website, the company aims to create quality insurance by doing away with all forms of paperwork. Interestingly, they keep to their word. Unlike most other insurers, you can do everything regarding getting your general liability insurance from Huckleberry online. You do not have to file any paperwork whatsoever. The interesting part is that they have tailored policies to suit their customers across their industries, including construction. Besides, their customers speak well of them and their quality ratings on most trusted platforms.   

 Here is a sample quote generated for a small business in Pennsylvania with four employees, an annual income of 500,000 dollars, and a yearly payroll of 260,000 dollars. 

Next: Best for independent contractors in Pennsylvania

Like the name, Next seems to be changing the face of general liability in Pennsylvania and across the US. Even though they are relatively new in the game, they do their best to ensure their users have the best experience. As a user with Next, you can obtain your coverage and file for claims at any time of your choice, thanks to their AI-powered website. However, sometimes, you might have to speak with a customer representative. Even then, response time is usually less than 48 hours. The only problem is, the company does not offer insurance for all industries. They focus on serving independent contractors from carpenters to landscapers to HVAC technicians.

To cap it all, the company is rated well by most of their customers and the A.M. Best.  Here is a sample quote generated for a small business in Pennsylvania with four employees, an annual income of 500,000 dollars, and a yearly payroll of 260,000 dollars. 

The Hartford: Best Overall

The Hartford is a household name when it comes to insurance policies for small and large businesses. Their general liability insurance coverage is worth mentioning because it is specially tailored to address the particular risks affecting businesses in their various industries. As a result, the company offers better protection than many other brokers out there. Its high limits for general liability insurance make it most suitable for most businesses in most industries. If you have a difficult time finding general liability insurance for your business, you will have a good chance to have success with the Hartford. The company has an excellent reputation and strong financial rating from all rating agencies, including AM Best.  

Geico: Best for existing Geico customers

The name GEICO is an abbreviation that comes from Government Employees Insurance Company. Back in 1936, when the company was founded, GEICO was mainly for military personnel and government employees. However, the company now provides a wide range of services focusing on vehicle insurance policies. The company offers their general liability insurance with their partner Hiscox business insurance. So, when you request a quote, you will be transferred to Hiscox, where you get your quotes. The process takes minutes, and it is fully automated. 

If you already have a Geico personal or commercial auto insurance policy, getting a general liability insurance policy from Hiscox through Geico offers you good discounts on both policies.

As you will see below, here is a sample quote generated for a small business in Pennsylvania with four employees, an annual income of 500,000 dollars, and a yearly payroll of 260,000 dollars. 

Liberty Mutual: Best for flexible options

Liberty Mutual is uniquely positioned to meet the changing insurance needs of small businesses. While their general liability insurance policy is comprehensive, they also allow their clients to use tailored policies to meet their unique needs. Aside from its flexibility and adaptability, Liberty Mutual is a Fortune 100 company and one of the largest insurance companies in the United States and worldwide. Therefore, you can rest assured that Liberty Mutual has enough funds to cover any claim you make. Liberty Mutual is also well-known for its workplace safety programs. You may be able to save money on your general liability premiums by implementing them. Unfortunately, Liberty mutual does not offer quotes for business insurance on their website at the moment. 

Pennsylvania general liability insurance requirements

General Liability Insurance is not a requirement under the law for businesses in Pennsylvania. However, it is worth noting that Pennsylvania has a terrible reputation for lawsuits in the United States. It is one of only five states where the constitution prohibits the legislature from limiting non-economic damages in liability suits. It’s so bad that about 60% of business owners here in Pennsylvania believe they would increase their annual revenues if they were assured that they would be protected from frivolous lawsuits. While the state legislature is currently working on legislation to address lawsuit abuse, it might be useful to invest in adequate commercial general liability coverage for your Pennsylvania business to limit your risk exposure.

What does general liability insurance cover in Pennsylvania?

General Liability (GL), small business, or commercial liability insurance is special coverage for small businesses that protect them from third-party claims such as bodily injury, property damage, or personal injury. In Pennsylvania, businesses are not compelled by law to have this insurance covered. However, having it is beneficial to your business as it helps you stay at rest. Also, some clients require that you have a certain level of general liability insurance before they can do business with you. 

Although the coverage may differ from company to company, a general liability insurance policy in Pennsylvania generally covers the following:

Bodily Injury

Accidents can happen at any time, even with careful planning. Sometimes, these accidents come with injuries that require you to pay for medical expenses. For example, imagine one of your clients comes to pick their clothes at your store, and then they trip and fall. If such a client gets an injury, you might be liable for their medical expenses, or you could even be sued. With general liability insurance, you can easily cover such costs arising from third-party bodily injury claims. This is important for your business whether you work at home, in an office, or work on your clients’ premises. 

Property damage:

Property damage insurance protects your company from business claims alleging financial loss resulting from property damage caused by your products or business operations. 

Errors in advertising:

For instance, imagine your company makes an advert, and suddenly, your business is being sued after someone made claims that your company violated certain copyrights in the adverts for your goods, services, or products. In such a situation, general liability insurance might protect your business in Pennsylvania from certain claims. 

Damage to one’s reputation:

In a similar vein, if someone were to sue you for reputational harm, malicious prosecution, false arrest, slander, libel, wrongful eviction, violation of privacy rights, etc., a general liability might protect your company from such claims.  

Rental property damage

This protects your company from certain claims that may arise during your business operations. For example, if there was lightning, fire, or explosion at your place of work that destroyed the place, general liability insurance might cover such.

Medical expenses

Pennsylvania general liability insurance will protect your company from medical claims when someone is injured on your business premises and requires medical treatment.

What is not covered by general liability insurance in Pennsylvania?

A general liability policy is a comprehensive policy that offers protection for your company. However, as comprehensive as the policy is, your general liability insurance typically will not cover the following:

Professional mistakes 

Your general liability insurance will not cover any of your professional mistakes. To cover lawsuits resulting from negligence and professional errors, you will need additional professional liability insurance (E&O). Learn more at the best professional liability insurance companies and the best E&O insurance companies.

Property damage 

General liability only covers third-party property damage. To cover such damages, you need business property insurance. Learn more at the best commercial property insurance companies.

Injuries to employees

Your general liability insurance policy only covers bodily injuries to non-employees. So, if you need a policy that will cover employee injuries, you will need a workers’ compensation insurance policy. Learn more at the best workers comp insurance companies.

Workplace disagreements

General liability insurance will not cover damages due to disagreements in your workplace. What you need instead is an Employment Practices Liability Insurance (EPLI) that covers lawsuits filed by employees alleging harassment, wrongful termination, discrimination, and other similar issues.

Physical damage to your vehicles

Finally, if there is any damage to your company vehicles, you will need commercial auto insurance to cover such costs. Learn more at the best commercial auto insurance companies.

Why you should get general liability insurance for your small business in Pennsylvania

Did you know, most small businesses in Pennsylvania have a 40% chance of facing a lawsuit within the next decade? If this happens, you will have to pay to defend yourself, including payment for lawyers and other legal proceedings and any other financial settlements. There is also a significant amount of time you will waste dealing with the legal process. It’s a costly nightmare that shouldn’t happen to anyone.  

But as a business owner, these things happen, and they can happen to you at any time. Someone might walk into your business premises, trip and fall, and you may be held legally liable. It could be their property that got damaged while visiting your establishment or due to something you did, and they want a settlement. Therefore, you must be sure that your company is adequately protected against all forms of risk.

Who should get general liability insurance in Pennsylvania?

If you and your employees do any of the following, you should consider purchasing general liability insurance as soon as possible:

If …Then, we will need general liability insurance, here is why … 
If you meet with your clients one-on-oneWhether your clients are visiting you or meeting them at their place, there is always a chance that someone might get injured which will require medical attention.  
If you advertise your businessIf you promote your business and inadvertently use copyright or trademarked language, general liability insurance may cover you if a claim is made.
If you keep your customers’ belongingsIf you have to hold your customer’s property at some point, you will need general liability insurance. It will protect you if any of the properties in your care gets damaged at your place of business or on a job site. General liability insurance may cover the cost of repairing or replacing the damaged properties.
Some contracts require general liability insuranceSome specific contracts require that you have liability insurance as a condition of contract award. Not having liability insurance is a way of reducing your chances of getting such contracts. 

How much does general liability insurance cost in Pennsylvania?

The average cost of a general liability insurance policy for small businesses in Pennsylvania is $110 a month or $1,320 a year. This is just the average. Your policy premiums will be very different.

Different insurance companies will provide you with different quotes. Be sure to shop around with a few companies or with a digital broker like CoverWallet to compare several quotes to select the best one for your business.

What factors affect the Pennsylvania general liability insurance cost?

When it comes to general liability insurance policies in Pennsylvania, there is no fixed cost. The cost varies across the company and also depends on several factors, including the following:

The profession of your business 

This is an important factor that plays a large role in the cost of your premium. For example, hazardous waste technicians usually work with dangerous chemicals and heavy equipment. As a result, they will pay more for coverage, unlike lawn care specialists that typically work with lighter landscaping tools at ground level. 

Your coverage needs

That is, the amount you want the insurance to cover. Usually, the higher the value, the more you have to pay for your premium. 

The size of your business

This includes several other factors like the gross payroll of the owners and employees (including subcontractors), the size of the business premises in square feet, and your projected sales for the next year.  The higher the value of these factors, the higher the cost of your premium. 

Location of your business

Businesses in highly-populated areas of Pennsylvania like Philadelphia and Pittsburg will pay more for general liability insurance than those in less populated cities like Erie.

>>MORE: How Much Does General Liability Insurance Cost?

How to find affordable general liability insurance in Pennsylvania

The following are some strategies you can use in getting affordable general liability insurance for your PA company. 

Compare several quotes to find the cheapest one

The first thing is to compare quotes across companies. While doing that, do not simply go for the cheapest. Instead, go for the company that offers you the best value at the most affordable price. Some insurers offer tailored packages that help you handle specific risks that are unique to your business type. That way, you get more protection, and you can save some costs.  

Manage the coverage limit and deductibles

Once you have got the right insurer, ensure to pick the right limits. Your limit refers to the maximum amount your insurer will pay for claims made during the policy period, usually one year. Generally speaking, the higher your limit, the more expensive your general liability insurance policy will be. Therefore, ensure you choose a limit that will protect you without being too expensive.

Similarly, deductibles play a role in determining the premiums of the policy. The higher the deductible is the lower the premiums are.

Avoid claims by prioritizing safety

Lastly, another effective way to keep general liability insurance costs low is to reduce claims. You can do this by prioritizing safety when people visit your store or office. When you have a customer’s property in your possession, exercise extreme caution. Also, go over best practices for safety with your employees so they can help you reduce the likelihood of a claim.

>>MORE: The Cheapest General Liability Insurance Companies

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