Most business owners are aware of the importance of general liability insurance. General liability coverage can protect a business from liability issues, claims, lawsuits, etc. What you may not know, however, is that a business’ rate and amount of coverage greatly depends on what “market” they fall into. Don’t know what a market is? Then you may want to speak to your insurance agent as soon as possible!

There are two basic markets of businesses when it comes to general liability insurance. A business will either fall into what is called the “Standard Market” or what is called the “Excess Surplus Market.” Those in the standard market are the businesses that get the lowest rates and the more comprehensive coverage. Examples of standard market businesses are technical companies, lawyers, doctors’ offices, etc. There is a set premium cost for general liability insurance with no finance charge for those businesses in the standard market.

For those businesses in the excess surplus market, however, getting general liability insurance is not as easy. Examples of excess surplus market businesses are roofers, siders, steal workers, etc. General Liability coverage for these businesses is very expensive and often has a lot less coverage (i.e. more exclusions) than those businesses in the standard market can receive. Excess surplus market businesses are also required to pay their premiums in full to their insurance company upon creation of their policy or find an outside financer to cover the immediate cost of their premium.

Businesses in North Carolina should contact Clinard Insurance for a free quote on general liability insurance and more information on which market your business may fall into. Visit our virtual insurance office today at www.clinardinsurance.com!