How Much Does Workers Compensation Insurance Cost? As a business owner, you already have a…
As a business owner, have you ever wondered, “What is general liability insurance?”
General Liability Insurance is a type of business insurance that protects your company from lawsuits and claims related to accidents or injuries on the premises. It also covers any damage caused by your employees while they are at work, as well as property damage caused by natural disasters like fires or storms.
If you don’t have this coverage in place for your small business, then it’s time to get some! You never know when something will happen and you’ll be glad to have protection against these types of events.
Keep reading to learn everything you need to know about general liability insurance.
What Is General Liability Insurance? Do I Need It?
If you own a small business, then the answer is yes.
Even if you think something like this won’t happen to your business, there’s always a chance that someone will get hurt on your property, or one of your employees will make a mistake that results in some type of injury or damaged property. If that happens and someone decides to sue you, general liability insurance can help to protect you from those costs.
For example, let’s say you run a small business that provides in-home pet care. One day, one of your clients’ dogs escapes from your home and bites a passerby. The victim decides to sue you for the injuries they sustained as a result of the bite. If you don’t have general liability insurance in place, then you would be responsible for paying for all of the legal costs associated with defending yourself in court.
However, if you do have insurance, your provider will help to cover those costs.
Who Does General Liability Insurance Cover?
The general liability insurance policy will typically cover the business itself, as well as any employees who are acting on behalf of the company. It does not, however, typically cover the owners of the business.
This means that if you are personally sued as a result of something that happened with your business, the policy would not help to cover those costs.
What Does General Liability Insurance Cover?
General liability insurance typically comes with three areas of coverage. Collectively these three areas can protect your business from a wide range of potential incidents:
Bodily Injury And Property Damage Claims
These claims might be against your business if someone has an accident on your premises or gets injured by something provided by your business, such as a faulty appliance. The policy also can cover lawsuits that result from damage caused by your employees while they are working.
For example, if an employee of yours causes an accident while driving a company vehicle, the policy would likely help to pay for any damages that occur as a result.
If someone gets injured by a product you’ve made or sold, they could file a claim against your business. This type of policy will help to protect you from any legal costs and damages that may come as a result of the injury.
For example, if you are a manufacturer of children’s toys and one of your toys causes an injury, the policy would help to cover any legal costs that may arise.
Personal And Advertising Injury
This coverage can help to protect you from lawsuits related to things like slander or libel. It can also help to cover the costs of defending yourself against any such claims.
For example, if someone says something bad about your business on social media and another person decides to sue you for damages, the policy would likely cover those costs.
How Much Does General Liability Insurance Cost?
The cost of business insurance will vary depending on several factors, including the size and type of your business, the number of employees, and the amount of coverage you need.
Typical policies come in $1 million or $2 million increments, with different deductible options that lower your monthly premium if you opt to pay more out of pocket when filing a claim. You’ll also want to consider additional costs like administrative fees and any special endorsements for products sold by your business.
Choosing the right general liability insurance policy for your business can be confusing, but it’s important to have some type of coverage in place to protect yourself from the risks associated with running a business. Work with an insurance agent who can help you find the right policy for your company.
Things to Consider When Choosing General Liability Insurance
There are some factors to consider when choosing general liability insurance for your business. Questions to ask yourself when considering insurance options include:
- How much coverage do you need?
- What are the different deductible options available to you?
- Does your budget allow for administrative fees or special endorsements (for example, indemnity agreements)?
- Do you plan on selling any products that could cause problems with claims down the road?
Before purchasing a policy, consider these things:
The size of your business will play a role in the cost of your policy. Larger businesses will likely have higher premiums than smaller businesses, as they assume more risk.
Number of Employees
The more employees you have, the more likely it is that someone will get injured on the job. This increases the risk of your business, which will likely result in higher premiums.
Type of Work Performed
Your company’s line of work can also impact the cost of your policy. For example, businesses that manufacture or sell hazardous products like chemicals or pharmaceuticals typically pay more for general liability insurance than those that don’t.
Your location will likely impact the cost of your policy as well. Businesses that operate in high-crime areas will generally pay more than those located in safe areas because there is an increased chance of injury to employees and property damage.
Purchase General Liability Insurance Today
As a small business owner, it’s important to have general liability insurance in place to protect yourself from potential lawsuits and claims.
This type of policy can cover accidents or injuries that occur on your premises, as well as any damage caused by your employees while they’re working. It’s important to shop around and compare rates to find the best policy for your budget. Hopefully, after this article, you’ll never have to wonder, “What is general liability insurance” again.
When you’re ready, contact our expert team. We’d be happy to chat!