If you have employees working for you, then you need liability insurance. There are many different types of insurance policies out there, including commercial general liability (CGL), automobile medical payments (Med Pay), worker's compensation, employer's liability, and others. However, if you don't purchase liability insurance, you could face legal troubles, civil lawsuits, and even criminal charges. If you're not sure whether you should buy liability insurance or not, here's what you need to know about it.

The amount of coverage you get will depend on how much you spend on your business each year. You'll find liability limits ranging from $500,000 to over $10 million, with some businesses having higher limits than others. To give you an idea of how much liability insurance costs, we've outlined some premiums below:

- $125/month - $500,000 limit per occurrence

- $250/month - $1,000,000 limit per occurrence

- $375/month - $2,000,000 limit

- $750/month - $5,000,000 limit

- $1,000/month - $10,000,000 limit (for self-insured operations)

There are two types of liability coverages: primary and excess. Primary means that the policyholder pays the first dollar spent on claims; excess means that the insurer pays only after the primary coverage has been exhausted. In addition to these two options, there may be deductibles involved as well. Deductible refers to the amount of money you pay before your insurance company begins paying claims. A deductible is generally between 5% and 10% of the total claim amount.

Anyone who operates a business that involves people can benefit from purchasing liability insurance. That includes anyone who owns a car repair shop, restaurant, barbershop, retail store, construction site, landscaping service, janitorial services, moving company, or any other type of business where people work. Even if you own a home improvement business, you still need to carry liability insurance. People who run their lawn care service, snow removal service, tree trimming service, cleaning service, or pet sitting service can also benefit from carrying liability insurance.

You do need to carry worker's compensation insurance when hiring employees. But, you do not need to carry liability insurance unless someone gets hurt at your place of employment. If you hire contractors to work on your property, you will likely need to carry liability insurance depending on the size of your project.