If you own any type of business, then you need general liability insurance. What is general liability business insurance? It is a common type of coverage that covers lawsuits that arise from normal business operations. General liability insurance provides business owners with coverage for third-party bodily injury claims, third-party property claims, advertising claims and product liability claims. How much coverage your business needs depends on a variety of factors, but most small businesses choose the standard $1 million per occurrence policy or $2 million aggregate policy limits. Factors that can influence how much coverage you acquire include the size of your business, the number of employees you have and the unique risks you face in your industry.
Uncertainty in Business
Despite how careful you are and how well you train your employees to do their jobs, there is always uncertainty in every business. Accidents can occur at any time, and if you are not prepared, your business could suffer the financial consequences. For example, a customer comes into your business and suffers a slip and fall injury after you have just finished mopping the floor. The customer sues you for $100,000 in medical costs. General liability insurance would help cover the victim’s medical costs.
All types of businesses can benefit from having general liability insurance, such as landscaping companies, real estate agents, marketing professionals, consultants, IT contractors, artisan contractors, janitorial services and most small business owners.
Commonly Covered Events
General liability business insurance is one of the most common types of policies acquired by small businesses. With coverage, business owners can gain assistance with covering a variety of expenses, such as costs stemming from property damage, medical expenses, advertising injury claims, administrative costs, and various court costs, settlements and judgments. There are also certain things that general liability business insurance does not generally cover, such as damage to your own business property, auto accidents caused by you or your employees, personal injury claims made by your employees and any malicious or illegal acts that were performed intentionally.
It is important to remember that without general liability insurance, you are solely responsible for any damages or legal fees that incur following an accident or property damage.
Training and Prevention
When you hire new employees, you likely spend some time on training. This can help ensure that your newest workers are able to do their jobs at a satisfactory level. Training can also help reduce certain risks involving bodily injury and property damage. However, training alone cannot prevent these risks. To reduce the unique threats that your business faces, it is important to provide safety training to any and all employees involved in material handling, transportation, hazardous substances and equipment. It is also a good idea to protect your business further with additional insurance policies.
A well-balanced business liability insurance package should include professional liability, excess liability, commercial liability, errors and omissions (E&O) coverage and directors and officers (D&O) coverage. If you are not sure what type of liability insurance policies you need for your business, speak with an experienced insurance agent about your options.
Medical and Damages Coverage
Bodily injury occurs more often than you would think in businesses across the nation. Accidents can occur in nearly any type of business, resulting in injuries to unsuspecting customers or guests. If an accident occurs in your building to someone other than you and your employees, your general liability business insurance will typically cover any medical bills and other damages that result. Most policies have a limit, so be sure to review your insurance terms carefully. For example, your policy may cover any medical expenses for each injured person up to $5,000 per person.
If your business is sued for medical expenses, you may be responsible for paying thousands of dollars. With a general liability business insurance policy, you can protect yourself from the financial consequences of these types of third-party accidents.
In the Case of Litigation
Not all accidents and property damage involving a third-party are easily resolved. If a customer or client decides to take your business to court, you may face a number of expenses relating to legal costs. In addition to the cost of hiring a qualified lawyer to represent you, you may be responsible for administrative fees, defense costs, judgments, settlements and various other expenses. A general liability business policy will typically cover most legal expenses and defense costs on your behalf.
If you own or operate a small business, you cannot afford to pay costly bodily injury, property damage or advertising injury claims out-of-pocket. That is why successful businesses rely on general liability coverage to protect their interests. For more information about general liability business insurance or to acquire a policy for your company, speak with the experienced business attorneys at John M. Glover today.