As a business owner or small contractor, you require a form of general liability protection, to shield you from such unexpected situations. A single accident might lead into a lawsuit that is beyond your financial abilities. When that happens, you will be staring at losing your source of livelihood. That is where general liability insurance comes in.
Some clients might also need you to agree to a certain level of general liability before you can provide goods or services to them. Landlords typically require you carry general liability insurance, as well as business your are doing work for.
What Does General Liability Insurance Cover?
Businesses are inherently risky. The good news is that some of the risks can be protected against. General business liability insurance helps to safeguard your business against various known and unknown risks. Some of the areas in your business that are covered by general liability insurance include:
- Property damage and bodily injury: “Slip and fall” is covered here. The property damage and bodily injury helps to protect your business against various business claims as well as claims alleging financial loss as a result of bodily injury or property damage, occurring out of your products or business operations.
- Advertising errors: This protects your business from certain claims where others claim that your business has infringed on certain copyrights when advertising your goods, services or products.
- Reputational harm: The reputational harm protects your business against claims of malicious prosecution, false arrest, slander, libel, wrongful eviction and violation of privacy rights, just to name a few.
- Damage to rented premises: This helps to protect your business from certain claims that might occur during your business operations. This may be occasioned by lightning, fire or explosion.
- Medical payments: General liability insurance will protect your business against medical claims brought forward, when someone gets injured in your business premises and requires medical treatment.
What Doesn’t General Liability Insurance Cover?
The truth is, general liability insurance does not cover everything. Some instances of negligence or malpractices are not covered, which include:
- Employee injuries: In such instances, it is advisable to go for workers compensation insurance. This insurance protects all your workers every time they are hurt when working in your business premises.
- Professional mistakes: General liability insurance does not cover professional mistakes. Such issues are covered by professional liability insurance. It insures your business against mistakes that may happen as you offer solutions, opinions, recommendations or services.
- Auto-related coverage: Additionally, general liability insurance does not cover auto accidents even when they are related to your business. Just buy a different auto policy and protect your business.
- Intentional acts: Injuries or damages resulting from intentional or expected acts are not covered by general liability insurance. For example, if one of your employees insults a client, the damages sued will not be covered by business liability insurance. However, if the said employee was defending the company or himself from a criminal act, then the liability insurance applies.
General Liability Insurance Cost
The cost of your liability insurance coverage is determined by various factors. They include the business type, location of your business, the total number of employees in your business, your gross sales or payroll, as well as the risk level your business is exposed to.
For example, if your business manufactures, delivers and installs certain equipment, then it is exposed to a higher risk of being sued, as compared to an enterprise that delivers equipment only without installation.
With the daily uncertainties of business management, you cannot afford to stay without liability insurance. Accidents do happen, whether off site or on site. They may include your customers or employees, regardless of the level of precautions you have put in place.
More and more enterprises are being sued due to issues like libel, slander, property damage, and bodily injury, just to name a few. Apart from that, businesses can be sued even when they have not done anything wrong. That is why your business requires general liability insurance protection
Free General Liability Insurance Quote
We offer a wide range of general liability insurance plans, which can be customized to meet your business needs. We understand the need for complete business protection. Our agents will work closely with you to identify the right type of general liability insurance needed in every stage of your business. Just request a free quote and we will get back to you to get started.