As a business owner, you are responsible for the safety of your employees, customers, and anyone else who comes into contact with your business. You are also responsible for the property damage and injuries that may occur as a result of your business operations. This is where general liability insurance comes in.
What Is a General Liability Insurance
General liability insurance is a type of insurance that provides protection against a variety of claims, including bodily injury, property damage, personal injury, and more. It can help cover the costs of legal fees, settlements, and judgments, up to the policy limit.
While general liability insurance is not required by law, it is highly recommended, especially for businesses with customers or clients. That's because if someone is injured on your property or because of your products or services, you could be held liable.
For example, let's say a customer slips and falls in your store. They could sue you for damages, and if you don't have insurance, you could be on the hook for the entire cost of the lawsuit, which could be tens of thousands of dollars or more.
With general liability insurance in place, you can rest assured knowing that you're protected financially in the event of a lawsuit or other frivolous claims.
When choosing a general liability insurance policy, it is important to work with an experienced insurance agent or broker who can help you assess your risks and choose the right coverage for your business.
What Does General Liability Insurance Cover
There are many different types of risks that your business could be exposed to, and general liability insurance can help protect you from many of them. Some of the risks that general liability insurance can cover include:
Product Liability: If you sell products, you could be held liable if one of your products causes harm to a customer.
Public Liability/Premises Liability: If someone is injured on your property, you could be held liable.
Completed Operations Liability: If you provide a service, you could be held liable if your work causes harm to someone.
Copyright Infringement: If you use someone else's copyrighted material without permission, you could be sued.
Defamation: If you make a false statement that damages someone's reputation, you could be sued.
Medical Payments: If someone is injured on your property, your insurance can help pay for their medical expenses.
Having general liability insurance can help give you peace of mind knowing that you are protected from many of the risks associated with running a business.
What General Liability Insurance Does Not Cover
There are a few things that general liability insurance does not cover, such as intentional acts of violence or damage to property. But overall, this type of insurance can help give you peace of mind knowing that your business is protected from some of the risks it faces.
How Much Does General Liability Insurance Cost
When it comes to general liability insurance, there is no one-size-fits-all answer to the question of how much coverage you need or how much it will cost.
Amount of Coverage
The first thing to understand is that the cost of general liability insurance is based on the amount of coverage you need. The more coverage you need, the higher the premium will be. However, the amount of coverage you need will also depend on the specific risks your business faces. For example, if your business deals with hazardous materials, you will likely need more coverage than a business that doesn't.
Size of Your Operation
Another factor that will affect the cost of your general liability insurance is the size of your operation. Generally, the larger your business, the higher your premium will be. This is because larger businesses are more likely to face claims than smaller businesses.
Location of Your Business
Finally, the location of your business can also affect the cost of your insurance. Businesses in high-risk areas, such as those located in flood zones or near active volcanoes, will usually pay more for their insurance than businesses in low-risk areas.
So, if you're thinking about starting or growing your business, make sure you're adequately protected with general liability insurance. It could be the difference between your business thriving or shutting its doors for good. So don't wait until it's too late to get covered.
Brand and Britt Insurance offers general liability insurance that can help protect your business from third-party lawsuits. We have a variety of coverage options to choose from, so you can find the right policy for your business. Let us help you find the right coverage for your business needs.