Currently there are many insurances that have been designed to protect people or assets in different ways against the unforeseen events that arise daily. You have probably heard about general civil liability insurance, well, then we will explain it in detail what is General Liability Insurance.
- 1 What is General Liability Insurance?
- 2 What does General Liability Insurance cover?
- 3 Who needs General Liability Insurance?
- 4 How much does general liability insurance cost?
- 5 Why do you need liability insurance?
- 6 Is general business liability insurance required by law?
- 7 Get additional coverage with professional liability insurance and limited liability insurance
What is General Liability Insurance?
General liability insurance (GLI General Liability Insurance), sometimes called commercial liability insurance and business general liability insurance, helps protect your business from bodily injury and property damage claims. These types of claims can arise during normal business operations. Without coverage, payment for possible damages would come out of your pocket.
What does General Liability Insurance cover?
General Liability Insurance or general liability insurance helps you cover the expenses that arise when facing a property damage or bodily injury claim. It can help you pay:
- A client’s medical expenses if they slip and fall at your business.
- Costs to repair a wall that your employee accidentally damaged while working on a client’s home
- The legal costs to defend your business in court
- A client’s lawsuits and settlements or a client’s lawsuit
Civil liability insurance or General Liability Insurance can help cover claims for:
- bodily injury or damage to the property that your business may cause.
- damage to reputation as a result of malicious prosecution, slander, defamation, wrongful eviction, violation of a person’s privacy, and more.
- advertising injuries, such as copyright infringement of your business ads.
- medical costs if your client is injured while visiting your business.
- Damage to rental property caused by a covered loss such as fire, lightning or explosion.
Who needs General Liability Insurance?
Statistics show that four out of ten small business owners are likely to receive a property or general liability claim in the next 10 years. Claims range from unexpected incidents, such as a robbery, to unforeseen accidents, such as a client who is injured after a slip and fall.
If you own a business you should have civil liability insurance or General Liability Insurance.
How much does general liability insurance cost?
The cost of general liability insurance depends on several factors.
An important factor is your type of business. Companies in higher risk industries must pay a higher price compared to lower risk companies. For example, construction companies are likely to be charged a higher rate than consulting firms. Other factors that can affect the cost of your general liability insurance are those of your company:
- Years of experience
- building conditions
- Policy details, such as coverage limits and deductibles
- Insurance claim history
The best way to find out the exact price of General Liability Insurance for your business is to request a quote. You can adapt your policy to your specific needs. Request a quote to find out how you can protect your business with general liability insurance.
Why do you need liability insurance?
Many business owners wonder why they need general liability insurance. The answer is simple. As a small business owner, this insurance helps protect you from costly liability claims. It can help you if a claim arises during common business situations, such as:
- Meet with clients face to face
- Working on or with someone else’s property
- Use third-party sites for commercial activities
- advertise your business
You may also need this coverage if you have clients who request it. Many clients want to confirm that you have this coverage before signing a contract with your company. You can prove that you have general liability insurance with a certificate of insurance.
Is general business liability insurance required by law?
State laws do not typically require business owners to carry general liability insurance. However, it is advisable to have this coverage. If a customer sues your company and you don’t have coverage, you can put your company’s finances and your personal assets at risk.
It is important to understand the insurance laws in your state. Working with a local small business insurance agency can help you make the right decisions when choosing liability insurance for your business.
Get additional coverage with professional liability insurance and limited liability insurance
You can expand your business liability coverage with limited liability insurance and professional liability insurance.
Forming a limited liability company (LLC) separates your personal assets from your business. However, you are still exposed to liability claims that can put your business at financial risk. A limited liability insurance policy can help protect your LLC and cover claims that your business caused bodily injury or property damage.
A professional liability insurance policy helps protect your business if it is sued for an error in the professional services you have provided. This coverage is also known as errors and omissions (E&O) insurance.