General Liability Insurance: The Best Coverage For Small Businesses

When embarking on a new business venture, you want to make sure everything goes as smoothly as possible. It’s natural that you’d want to prevent all that hard work from going down the drain by being prepared for any potential complications. After all, starting a new business can take a lot of time, planning, and financial investment. 

With that being said, you want to be sure that you’re prepared for any financial obstacles you may encounter along the way. And part of that preparation includes insuring your business. 

Almost every business needs general liability insurance coverage in case the road to success gets a little bumpy. In this article, we’ll explore everything you need to know about general liability insurance.

The Importance Of Small Business Insurance 

Insurance serves as a safety net for a variety of needs. Whether you need financial cover for your personal property, your family, or your business, insurance can help cover the costs of potentially costly financial loss. 

In serious cases of claims against loss or damage, settlements and court judgments can easily cause smaller businesses to go bankrupt. 

Business insurance is crucial, especially for a smaller business that can’t afford bigger and more expensive claims against them. If you are a responsible business owner without a history of frequent claims or risky work, most insurers should be more than happy to offer coverage. 

In addition, customers, clients, or even other businesses may be hesitant to do business with you if you’re not insured. So business insurance helps build reliability too. 

If you already know what it is that you’re looking for, consider going ahead and getting a business insurance quote. If not, keep reading for more information. 

A businessman working at a desk on his laptop

What Is General Liability Business Insurance?

Most small businesses don’t have the financial capability to survive a significant liability claim against them. Therefore, general liability insurance for a small business is crucial as it offers possibly the most important kind of coverage. 

Also known as commercial general liability insurance or business liability insurance, it protects you and your business from general claims. An example may include covering the costs of medical expenses associated with any physical injuries.

Your business liability insurance cost may differ depending on a number of factors. These may range from your insurance company and policy details to your business size and experience. 

Either way, it’s safer to pay for an insurance policy rather than to risk having to cover the costs of a claim yourself. In fact, insurance companies have simplified the insurance claim procedure so that the process of claiming is as hassle-free as possible. 

What’s Included Under General Liability Coverage? 

This coverage type generally protects you and your business from claims against you resulting from your products, services, or operations. Examples of typical claims covered by this insurance type include: 

A cashbox with notes and coins

  • Physical injury – if a customer were to, for example, slip and fall on a wet floor on your premises, they could potentially make a claim for any physical injuries sustained. This insurance type will cover medical costs involved in their recovery.
  • Damage to property – if an employee were to accidentally damage customer property, such as breaking a window while working at their home, this insurance type would cover the claim. You may also be covered if you were to be held liable for damage to your landlord’s property.
  • Unexpected incidents – whether you have been a victim of a burglary or experienced damage due to a fire, this insurance type will cover the financial losses involved in such incidents. 
  • Reputational harm – if something you said in a public statement were to damage the reputation of or negatively impact another business, they could make a claim for those damages. 
  • Advertising injury – if your business defames another person or business, they may make a claim for defamation and advertising injury
  • Copyright infringement – another business may make a claim against you for using their work or intellectual property without their permission. This is more common in business advertising. 
  • Legal costs – in the event that a claim is made against your business, your insurance will cover the costs involved in your legal defense. This includes the attorney, as well as your court and expert witness fees. It also covers any financial losses you incur while participating in your defense. 

Exceptions and incidents that may not be covered include: 

  • Damage and losses due to business negligence
  • Intentional acts
  • Your personal property
  • Poor workmanship
  • Professional mistakes
  • Punitive damages
  • Employee injuries

It’s important to note that coverage inclusions and exclusions may differ from one insurance company or policy to the next. So it may be a good idea to check for a policy that’s tailored to suit your specific needs. 

Conclusion 

In the event of a hefty claim or lawsuit, and without insurance, your business could fold. So rather than worrying about what would happen, give yourself peace of mind by insuring your business so you can focus on climbing rather than the possibility of crumbling. 

With business insurance, not only are you keeping your business up and running, but you’re also doing it in a way that benefits everyone else. Sure, business insurance makes you more credible. But it also attracts and retains customers and employees for many different reasons. 

No business owner can predict what the future has in store for them. And none can guarantee that nothing unfortunate will ever happen to them or their business either. With general liability insurance, you can rest assured and continue doing what you do best.

We will be happy to hear your thoughts

Leave a reply