How to Choose the Right Liability Limit for a Florida Small Business

Learn how to pick the right general liability limit for your Florida small business. Step-by-step guidance from B & B Insurance Agency in Lantana, FL.

TL;DR:** Most Florida small businesses start with a $1 million per-occurrence / $2 million aggregate general liability policy, but that floor may not be high enough. Your real limit should match the largest realistic claim you could face, the highest requirement in any contract you sign, and the total assets a lawsuit could reach. An independent agency like B & B Insurance Agency can shop multiple carriers to find the right fit. What You Need Before you start comparing quotes, gather these four things: 1. Your contracts.** Client agreements, leases, and government permits often specify a minimum liability limit. That number becomes your floor, not your ceiling. 2. Your gross revenue.** Larger revenue generally signals higher exposure and higher award potential if a claimant argues lost profits. 3. Your asset list.** Real estate, equipment, vehicles, and cash reserves that a court judgment could reach. 4. Your industry risk profile.** A web designer and a roofing contractor both need general liability, but the roofer's exposure is orders of magnitude higher. Step 1: Identify the Risk You Are Actually Covering General liability protects you from three main claim types: bodily injury to a third party, property damage you cause, and personal or advertising injury (such as defamation). Before picking a number, answer this: What is the most expensive version of a claim that could realistically happen in my business?* Worked example.** A Lantana landscaping company accidentally severs an irrigation line at a commercial property. Repairs cost $18,000. The property owner also claims $40,000 in lost rental income while the irrigation was down. Total exposure before legal fees: roughly $58,000. That fits inside a $1 million per-occurrence limit easily. But if the same crew…