What is General Liability Insurance?
General liability insurance is a basic need for every small business. It helps protect your business against financial losses if your business is found liable for causing an accident or injury to others besides your employees. This also includes certain accidents that your employees are found liable for while they are working for you. Those losses can involve property damage, bodily injury, personal damages, medical expenses, and lawsuits involving libel and slander.
These situations can become overwhelming because your business could be presented with several hefty costs from repairs, replacement transportation, medical bills, and wage loss, amongst others.
General liability can also help in an unforeseen accident claim where you may need legal assistance. This type of insurance is not required by most states; however, some states may require it to receive licensing for specific types of jobs.
Don’t be caught unprepared. Call your agent now to discuss your specific business needs and get your general liability insurance policy as soon as possible.
How Does General Liability Insurance Help Protect Your Business?
There are several scenarios that general liability insurance can cover. Different incidents or losses can happen while you are providing a service or delivering a product, so it is best to be prepared with general liability insurance.
Here are a few examples of the losses that general liability insurance can help you cover:
If a customer visits your office or you are at a job site and they trip over your work equipment and they become injured, you may be responsible for their medical bills.
If a customer is parked at your place of business and one of your employees accidentally damages their vehicle, you may be responsible for repair costs.
While at your job site, if you or one of your employees accidentally damages your client’s personal property, you may be responsible for replacing that object.
While at a job site, if you or one of your employees accidentally damages the client’s flooring or causes a flood, you may be responsible for the costs of clean up and replacing the flooring.
Which Professions Need Commercial General Liability Insurance?
It does not matter how small or large your business is, general liability insurance is a necessity for all businesses and a minuscule investment for protection in comparison with the financial loss you could face if you don’t have this coverage.
The type of small business that you have can vary. Any business listed below will benefit the most from having commercial general liability:
Delivery person
Food truck owner
General contractor
Flooring installer
House painter
Landscaper
Electrician
Roofer
Why Does Your Small Business Need General Liability Insurance?
The most important reason is a single lawsuit can cause the bankruptcy of your small business, so it is best to assure that you have insurance to help protect you. However, there are other reasons why it is important to purchase a general liability policy.
General liability can be a requirement for some clients’ contracts because it reassures them that if there is a loss, they may have some protection. Depending on the state that you live in, it may also be a requirement that you have a general liability insurance policy active to receive a contractor’s license.
Can General Liability Be Added to a Personal Policy Instead of a Commercial Policy?
Unfortunately, it cannot. General liability insurance is coverage separate from any personal auto insurance policy that you may have. It also generally has broader coverage than what your personal auto insurance policy can offer.
General liability can be combined with other types of commercial insurance such as Workers’ Compensation Insurance and commercial auto insurance for your work vehicles.
Disclaimer:
Seguros Avanza is the brand name for Infinity Insurance Agency, Inc. This material is for general informational purposes only. All statements are subject to the terms, exclusions, and conditions of the applicable policy.