General liability insurance is a blanket policy meant to cover common claims against a business such as property damage or bodily injury. In Florida if you’re a business owners will likely need to get a general liability policy to protect your business and those who patronize it. Luckily for entrepreneurs in the Sunshine State, liability insurance is generally inexpensive relative to other business insurance policies. In this guide we’ll discuss the average cost of business liability insurance in Florida. You should walk away with an understanding of how much it may cost your business and where to find a good price.
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How Much Does Business Liability Insurance Cost In Florida?
The cost of a general liability policy in Florida will vary based on a number of factors, but we found on average it’s about $2,205 per year or $183 per month. That is slightly more expensive than the national average of $1,661 which we found. However this is a reflection of the types of industries that are popular in Florida.
As you will soon see, the price of business liability insurance in Florida (and in general) is impacted by several factors. The biggest factors include the type of business, how much revenue that business earns and where that business is located. One factor is location. A business in a large city like Jacksonville or Miami, for example, may have different rate than someone from like Homestead or Daytona Beach.
Average Cost Of General Liability Insurance By Industry
The industry your business is part of will be a huge factor on what you ultimately pay. We took the eight most popular small businesses in Florida and found their average general liability insurance cost:
| Business | Average Business Liability Insurance Annual Premium | Monthly Premium |
|---|---|---|
| Civic/Social Organizations | $930 | $78 |
| Grocery Stores | $962 | $80 |
| Snack and Nonalcoholic Beverage Bars | $962 | $80 |
| Nail Salons | $1,058 | $88 |
| Labor Organizations | $1,058 | $88 |
| Liquor Stores | $1,251 | $104 |
| Limited-Service Restaurants | $2,019 | $168 |
| Hotels/Motels | $7,607 | $634 |
As you may notice, premiums are higher the more dangerous a business becomes. With a social organization for example which requires minimal physical activity, the chance of damages happen at your place of business or a result of your business is small. At a motel on the other hand where there are multiple guests coming in every day, the chances of something going wrong are much higher.
Cost Of Business Liability Insurance By Total Revenue
A business’ total revenue also changes the cost. That may seem odd and unrelated. In reality, the more money your company makes, the more it stands to lose in a lawsuit. An accident at your place of business can open you up to a lawsuit that goes after all of your assets. As a result, you need to have the right amount of coverage to protect every penny of your assets.
As coverage increases, price follows suit. Here are the same business industries again, but this time, listed with the general liability insurance cost for $50,000, $250,000, and $750,000 in revenue, based on companies with 10 employees.
| Business | Insurance for $50,000 Revenue | Insurance for $250,000 Revenue | Insurance for $750,000 Revenue |
|---|---|---|---|
| Limited-Service Restaurants | $1,153 | $2,019 | $3,173 |
| Supermarkets and Other Grocery (except Convenience) Stores | $550 | $962 | $1,512 |
| Beer, Wine, and Liquor Stores | $715 | $1,251 | $1,966 |
| Nail Salons | $605 | $1,058 | $1,663 |
| Hotels (except Casino Hotels) and Motels | $4,347 | $7,607 | $11,954 |
| Snack and Nonalcoholic Beverage Bars | $550 | $962 | $1,512 |
| Labor Unions and Similar Labor Organizations | $605 | $1,058 | $1,663 |
| Civic and Social Organizations | $756 | $930 | $1,462 |
How To Find Business Liability Insurance In Florida
Whether you own a hotel on the beach in Miami or run an accounting business from home in Tampa, you’ll likely need general liability coverage. The price will depend on features specific to your business but an insurance marketplace like CoverWallet should be able to help you find the best price.
Do You Need Business Liability Insurance?
General liability insurance isn’t required by law in Florida, but it is highly recommended for any small business. While some industries are riskier than others, there is always some risk of injury or damage when someone enters your place of business. If you own a Miami night club for example, there shouldn’t be any question about getting a general liability insurance policy.
Some Professions May Require It
There are certain professions which require a license (such as a dentist or real estate agent) where to get the license you may need to have a liability policy in place.
General Liability vs Workers Comp Insurance
Another key thing to remember when shopping for liability insurance in Florida is the difference with workers comp insurance. While they may sound similar, they actually cover very different things. General liability insurance protects you from litigation resulting from an injury of a patron or damage to a patron’s property at your place of business.
Workman’s compensation insurance on the other hand covers you from litigation stemming from one of your own employees who are injured at your place of business. A general liability policy would not cover you should one of your employees decides to sue.
General Liability Insurance vs Product Liability Insurance
As we say above, general liability covers damages that arise due to negligence on the part of the individual, company, or business usually at your place of business. Some business have a unique type of risk however that is not considered physical bodily or property damage. Some liability stems from the words or things we give to clients.
In comes Product liability insurance. This type of insurance protects the company, manufacturer, or seller from any claims that arise due to the negligence of using their products. For example, if your business manufactures a lip gloss, and lip gloss causes an allergic reaction you could be sued for negligence. Product liability insurance will cover expenses incurred by your cases.
General Liability Insurance vs Professional Liability Insurance
There is also professional liability coverage which provides coverage to individuals who are employed in a professional capacity by a company. Professional liability insurance is generally purchased by those who own medical practices, law firms, consultancies or marketing firms.
