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 are available under general liability insurance and how to determine your business’s insurance needs.
General Liability Insurance is 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’s assets from a number of legal issues, including:
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.
“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.
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.
If you aren't sure what type of insurance your business needs, contact Magruder Insurance to discuss your industry and common insurances popular within it.