General Liability Insurance Information
Why is General Liability Insurance Important?
In your business, you have a risk management plan in place to help you manage the liabilities present. However, even strong risk management cannot prevent every accident that might occur. If this accident impacts others, then you might have a legal responsibility to pay them for their losses. General liability insurance helps you do so.
Any security or safety risk in your business could cause a problem for a client, vendor or total stranger at any time. This doesn’t have to be an intentional mistake to be a sign of negligence on your part. Even the simplest oversights could lead to bigger problems. With general liability insurance, you won’t put critical business assets on the line as you try to make restitution to others.
What does General Liability Insurance Cover?
A commercial general liability policy covers liabilities that are common in almost any business and industry. These might include:
- Bodily Injuries: If a client trips over a broken tile in your store, falls and gets hurt, then this coverage can pay them for medical costs and other expenses or lost income.
- Property Damage: In the course of your work, you might cause property damage to another party’s belongings. This coverage can help you pay for their losses.
- Personal Injuries: Someone might allege that you committed acts like libel, slander or copyright infringement. If you must settle with them, then you might be able to use your liability plan.
- Products/Completed Operations Liabilities: Sometimes, the products you make or the services you provide someone else might cause them harm. For example, a coffee cup you manufacture might unexpectedly shatter and spill burning liquid on a client. If they sue you, then liability coverage can help you fight back.
Most policies will offer legal expenses coverage, too. They can help you cover your own defense costs and other fees related to a liability lawsuit.
How Much General Liability Insurance do I Need?
Many general liability plans offer at least $1 million in aggregate coverage, and you can increase your policy limits much higher in many cases. You’ll want to choose a policy that will cover a value close to that of your company assets. That way, you won’t face a huge loss of capital following a claim.
Because general liability insurance might not cover all the risks present in your business, you may need to add more specific liability coverage such as:
- Errors & omissions (E&O) insurance
- Hired/non-owned auto liability coverage
- Commercial auto liability insurance
- Employment practices liability insurance
- Cyber liability insurance
- Directors & officers (D&O) liability insurance
In some cases, you can add these benefits to your plan as endorsements. In other cases, you will have to buy coverage separately.
How can Small Businesses Get the Right General Liability Insurance?
Many businesses are required to buy general liability insurance, but regardless of requirements, this is still essential coverage for you to always have on hand.
If you are a small business owner who is looking for the right policy for you, then it is only natural that you want to keep your benefits both affordable and manageable. An easy solution is a business owners policy (BOP). With a BOP, you will receive essential business insurance in one package, and liability insurance is generally offered. The BOP’s terms are customizable to the needs of a small business.