It is essential for small businesses that serve customers to have general liability insurance. The cost of the insurance will depend on the type of business, the activities it undertakes, and the potential risks it may face.

Creating a suitable insurance plan for your business involves careful consideration. Insurance providers will assess the amount of risk they are taking on by providing coverage. They need to know the details of your company, its processes, and any weaknesses it may have. All of these factors have an impact on the price of general liability insurance for business owners.

If you are considering applying for general liability insurance, here are some factors that might affect your application.

1) Class Code and Payroll

The type of business you are running and the amount of payroll you have will be taken into consideration. This is because the higher your payroll, the higher the risk.

Insurance companies will want to know what kind of business you are running, the number of employees you have, and the wages you pay them. This will help them determine the amount of general liability coverage you need.

Your class code can also be used to determine whether or not a claim is valid if it is outside of your normal business operations. It is important to consider all of these factors when determining your insurance needs and costs.

2) Number of Employees

It is important to consider your employee size because it will have an impact on the amount of coverage you need, as well as the cost. If you have more employees, you can purchase additional coverage to protect your business from potential risks.

3) Years of Experience

Knowing the years of experience of your employees can help you make an informed decision about the type of coverage you need. It is important to consider the experience of your staff when choosing an insurance policy, as inexperienced employees may be more likely to make mistakes that could lead to liability claims.

Your insurance provider may ask for details about your business’s track record and the qualifications of its leadership team. This is because the length of time your business has been operating, and its financial standing can impact the cost of your premiums.

4) Location of Your Business

The location of your business can also affect the cost of insurance. If your business is located in an area with a higher crime rate, for example, you may be charged a higher premium than if it were located in a more secure area. 

Similarly, if your business is situated in an area prone to natural disasters, such as floods or earthquakes, you may have to pay a higher premium than if it were located in a safer area. Having many visitors in your space can result in higher insurance costs. A lot of people coming into your place increases the potential for someone to be hurt.

5) Size and Condition of Your Establishment

General liability insurance is designed to safeguard businesses from the expense of potential legal claims for property damage or bodily injury. The cost of the insurance plan will be determined by the size and condition of the company’s property.


The cost of general liability insurance can vary widely depending on a variety of factors. Businesses that operate in higher-risk industries or have more employees or visitors will likely pay higher premiums. Business owners should work with their insurance provider to determine the best policy for their needs.

If you want business operations to be smooth and hassle-free, Pascal Burke Insurance Brokerage Inc. has you covered. We offer builders’ risk insurance in Louisiana to protect you and your employees from harm. Get in touch with us today to learn how.