The expenses involved in protecting your business from potential lawsuits can be very high. There are many factors that have gone into the escalation of small business liability insurance premiums. After years of extreme competition among insurers leading to very competitive rates, events such as the 9/11 terrorist attacks and fluctuations in the stock market have led to higher insurance costs while lowering the coverage available. Therefore, it is very important for entrepreneurs to shop and compare when seeking to renew a policy or find a new one.