Why Is General Liability Insurance Important To Your Business?
For many business owners, general liability insurance is the first insurance policy they secure. General liability insurance provides coverage against claims in which someone is injured or their property is damaged as a result of the work or product your business performs.
Construction, retail, and wholesale-type businesses are fraught with mishaps and accidents. This kind of insurance is designed to cover medical expenses or compensation to the claimant so that your business isn’t covering their costs directly out of pocket.
What does general liability insurance cover?
General liability insurance represents a significant portion of all the insurance issued to businesses across the country and is the foundation for most all business insurance. Typically, general liability insurance covers the following:
- Medical costs for the claimant if they hurt themselves while at your business
- Attorney fees to defend your business if a claim is made
- Property damage that has occurred on your property or as a result of your product’s use or services
Additionally, general liability can cover your business’ brand. For example, a TV ad might inadvertently harm another business through its messaging, and this could be grounds for legal damages. This is called advertising injury and most general liability policies include protection of this, as well as coverage should your business be found liable for copyright infringement or reputational harm.
A standard general liability insurance policy is broken down into 3 parts:
Coverage A: Bodily Injury and Property Damage
Coverage B: Personal & Advertising Injury
Coverage C: Medical Payments
These three parts will cover you in multiple different areas:
- Premises liability. A feature that protects your business should a customer or someone not employed by the company sustain an injury at your site.
- Products liability. A feature that protects your business if a customer experiences a bodily injury as a result of using your product or service. These features vary widely and are based on the nature of your business.
- Personal advertising liability. A feature that provides coverage to your business should you incur costs defending a claim of libel, slander, and certain types of copyright infringement.
Why should my business get general liability insurance?
For many business owners, the risks of not having general liability insurance outweigh the benefits. Even if you aren’t required by law to have a general liability policy, clients, your landlord, or a certifying agent for your line of work may require proof of coverage.
Because of the importance of general liability coverage, many business owners opt to start a policy at the time they establish their business. Providing proof of insurance is a great way to prove to your customers and your community that your business is reputable and ready to offer services. For general contractors, liability insurance is a critical component of protecting your personal assets in the event of a filed claim. Possession of a general liability insurance policy allows the business the ability to weather the financial burden of settling the claim without having to take out significant personal capital or capital from the business itself. The same can be said for retail and wholesale establishments. From hardware stores to nail salons, protection against claims where an accident threatens your businesses’ very existence is a necessity.
How do I get a general liability policy if my business needs one?
The agents at R&S Insurance Agency, Inc. can quickly help to get your business insured. Because of our varied markets, an insurance program chosen from a host of reliable and secure insurance companies will be selected, providing you with the additional peace of mind that comes with your liability business coverage.