For those starting a business or looking for another insurance provider for your company, no matter what your business is for, you are going to need general liability insurance. This article is designed to explain what types of coverage is available under general liability insurance and how to determine your business’s insurance needs.
What is General Liability Insurance?
General Liability Insurance commonly shortened to Liability Insurance and may be referred to as Commercial General Business Liability by some insurance agents. The purpose of General Liability Insurance is to protect a business’ assets from a number of legal issues, including:
- If someone gets hurt on your property;
- Other injuries or property damages caused by you or your employees;
- Cost of legal representation if you are sued;
- The expense of a settlement if one is awarded,
- Liability as a tenant if damage is caused to the property you rent;
- And General Liability Insurance protects against claims of libel or slander, false advertising, and copyright infringement.
Like with other types of insurance, your liability plan will pay for covered expenses – up to your coverage limit. If you select $500,000 as your coverage limit for Liability Insurance, then your carrier will pay only up to $500,000 for a claim, and anything over $500,000 will be your sole responsibility. If your company holds a higher risk for potential claims, you will want a higher coverage level to ensure you are fully protected from potentially damaging financial claims.
Does Your Business Need General Liability Insurance?
“Better to have, and not need, than to need, and not have.” – Franz Kafka
Wiser words have not been said, at least not when it comes to insurance needs. Modern day society has become more litigious than it ever has been before. Protecting your business and your hard work should be your main focus when deciding about insurance. The overall annual cost of business insurance is far less than if something were to happen and you were found liable for the expenses.
How much coverage you should get will depend on the type of business you have and the associated risks that go with your line of work. Higher risk businesses will need more coverage than a business with fewer risks. Speak with one of our insurance agents to discuss your business and insurance needs to determine what types of coverage will be best for your growing business.
Are There Other Types Insurance?
In addition to General Liability Insurance, you can opt for additional or lesser coverage options. A Business Owner’s Policy (BOP Coverage) includes liability insurance and bundles it with property insurance, however, the coverage limit may not be as high as you need for your type of business. General Liability Insurance is available by itself but if you wish to opt for the bundled option provided by Business Owner’s Policy, then consider Excess Insurance or Umbrella Insurance. Either will increase your coverage limits and widen your range of claims that are eligible to be made against your policy.