General Liability Insurance in New York: Costs, Benefits, & Who Needs It

Here’s the thing with liability lawsuits: they are more common than you think, and they can be expensive. If you get sued by a client, you spend hundreds of dollars on one settlement. Or if a client visits your business and trips, they could sue you for bodily injury. This is where New York liability insurance could save your finances.

So what is general liability insurance in New York? NY general liability insurance covers your business if someone sues you for property damage, bodily injury, or advertising injury. In most cases, business insurance in NY is recommended for small businesses in New York because there are many situations in which they could get financially hurt in a lawsuit. 

To avoid this type of risk, business liability insurance in New York could be the perfect option for your business in New York. In this article, you will learn everything you need to know about general liability insurance in New York, including the costs, benefits, requirements, and who needs it. 

Who Needs General Liability Insurance in New York?

Most small businesses that rent commercial space need general liability insurance. Also, all businesses that work with clients can find this type of policy helpful. 

New York commercial insurance can keep your organization financially stable if you get sued by a client or even your competition. That said, most small business owners can find New York business insurance helpful, and this includes:

• Accountants
• Architects
• Caterers
• Electricians
• Handyman services
• House cleaning
• IT consultants
• A small business owner
• Landscaping company
• A consultant
• A real estate agent
• Marketing company
• Painters
• Photographers
• Restaurants

Is General Liability Insurance Required in NY?

While business insurance in NYC isn’t mandatory, it is advised to invest in sufficient general liability insurance for your business to minimize the risk exposure in case you get sued by a client. 

How General Liability Insurance in New York Works

Before you purchase commercial insurance in NYC, you will need to gather all the necessary information that will make the process quicker:

• Contact information
• Number of employees
• Basic information on what your business does
• Details about your business location
• Details about whether you are renting the place
• Estimated business revenue (usually for the upcoming year

Once you gather all this information, you need to compare general liability insurance quotes from at least three insurance companies because the policy prices aren’t the same. If you choose East Insurance Group, you will be able to speak to experienced insurance agents who will provide you with the information you need and craft an offer for you according to your specific business needs. 

East Insurance Group offers insurance policies in all cities in New York, including:

• New York City
• Buffalo
• Yonkers
• Syracuse
• Albany
• Mount Vernon
• Utica
• Brentwood

What General Liability Insurance in New York Doesn’t Cover?

As you can see, small business insurance in New York general liability insurance covers a lot, but not everything. For example, New York general liability insurance doesn’t cover:

• Business-related auto accidents
• Damages to your business property
• Employee injuries 
• Employee illnesses
• Illegal acts 

How Much Does General Liability Insurance in New York Cost?

The median cost of small business insurance in New York City is $42 per month or $500 annually. The policy is considered one of the more affordable insurance coverages for NY businesses. Here are the factors that have an impact on the policy cost: 

• Type of business
• Business location
• Number of employees
• Policy limits
• Other coverage options

Read More: The Complete Guide To Commercial Auto Insurance in NY

An Example of Professional Liability Insurance in New York for Finance and Accounting Businesses

Regarding professional liability insurance for finance and accounting businesses, the median cost is less than $35 per month or $400 per year. Professional liability insurance, also known as Errors and Omissions insurance, can cover finance professionals for mistakes they made during their work with clients. 

If your business has a higher risk of being sued over mistakes, you will probably pay more for the policy. The cost of professional liability insurance depends on the type of your business organization. 

Recommended Types of Insurance for New York Small Businesses

Besides general liability insurance in New York, there are other types of coverage that are recommended for business owners, including:

Professional Liability Insurance

Professional liability policy, also known as Errors and Omissions insurance or E&O, covers businesses that offer professional advice.

Cyber Liability Insurance

Cyber liability insurance covers financial costs that result from data breaches. This type of policy is recommended for businesses that work with credit card numbers and other sensitive data. 

Business Owner’s Policy

Business Owner’s Policy or BOP is a bundle of insurance policies, including business property insurance and general liability insurance. This type of coverage is known as the most cost-effective type of business insurance for New York businesses. 

Workers’ Compensation Insurance

According to New York state law, every business that has employees (full-time or part-time) must carry workers’ comp insurance. This policy is useful because it covers sole proprietors from costs that may arise from work-related injuries. 

Commercial Auto Insurance

Commercial auto insurance is required for business owners who drive their vehicles for business purposes. The policy covers injuries and property damages that occur in an accident, such as theft or vandalism.

Business Liability Insurance in New York Insurance Requirements

New York state law requires some policies, including:

Workers’ Compensation Insurance

New York state law requires every business with more than one employee to purchase workers’ compensation insurance. Workers’ comp insurance covers medical bills and offers disability benefits to injured workers. Also, this policy protects business owners in New York from liabilities over injuries. 

Commercial Vehicle Insurance

Business owners who use vehicles for commercial purposes also must carry commercial auto insurance. This policy covers the costs of accidents. 

FAQ

Why Do You Need General Liability Insurance in New York?

Liability claims happen more often than you think. They can also destroy a business if you’re not ready to cover all the costs from your own pocket. That said, getting a general liability insurance policy can save your business, especially if you don’t have thousands of dollars to spend on potential lawsuits. 

What if My Business Isn’t Listed in the Most Common Industries That Need General Liability?

Most businesses are eligible for general liability insurance. You can, however, check your company’s eligibility with an experienced insurance agent who will provide you with all the necessary information and craft an offer that will suit your specific business insurance needs. 

Are you still confused about general liability insurance in New York or do you need some help with getting a quote for your business? Contact us today and get all the information you need fast and for free!