What Type of Business Should Get General Liability Insurance?
If you own a business that is open to the public, general liability insurance is a must-have. Let’s face it, accidents happen, and when they do, you might find yourself on the receiving end of a lawsuit. That’s why you need to be prepared for the worst.
Some business owners may think their business is too small to warrant insurance, but that’s not always the case. If you own a storefront, offer clients services, or work in a professional office, you can still benefit from general liability insurance.
Even if your business has never had an accident, it’s always better to be safe than sorry.
What Coverage Do You Get?
This policy covers a range of risks, like bodily injury and damage to property. If your client slips and falls, for example, and is injured, general liability insurance helps cover his or her medical bills. If the client sues your business, the cost of a court judgement, legal fees, and other expenses are also covered.
What Should You Expect from Your Policy?
You should expect to see a few items in your coverage while shopping for insurance. Your liability policy includes, but is not limited to, bodily injury, medical payments, property damage, and personal injury (libel and slander).
What Does General Liability Insurance Not Cover?
There are a few things that general liability insurance does not cover. First, the insurance policy will not cover damages that are caused intentionally by your business. Secondly, it will not cover any damages that exceed your policy limits. For example, if your business is sued for $100,000 and your policy limit is $60,000, the insurance company will only pay that $60,000 towards the damages.
General liability insurance doesn’t cover any damages that are caused by defective products that your business manufactures or sells. For that, you will need product liability insurance. Other exclusions in the coverage are reputation damage, wrongful professional advice, and data loss. A client can file a defamation lawsuit against your business if an employee is found liable for the claim.
To protect your business from professional negligence claims, you will need errors and omissions insurance, while an electronic data loss insurance policy insures you against data loss claims.
At What Cost Can You Get This Policy?
There is no set pricing for liability insurance. It depends on your business size, industry, and risk exposure. According to a survey, 95% of small business owners pay less than $50 each month. On average, you should pay anywhere between $340 and $600 per year.
Some insurers provide discounts for this coverage when you purchase multiple policies, even when they are from different insurance companies. In addition, your business may qualify for a discount if you transfer your coverage to another insurer.
What Should You Look for in a General Liability Insurance Company?
There are several things you should consider when looking for a company to provide your general liability insurance. You want a company with experience, an impeccable financial record, and a long track record of customer service.
The best insurers offer personalized coverage to a wide variety of retailers. Furthermore, they allow you to pause your insurance for up to 30 days.
When Should You Get General Liability Insurance?
You should get general liability insurance as soon as you conduct any business activity. It should also be on your priority list if you have physical access to your clients’ properties or equipment. This policy is a vital component of any business operation, regardless of the business size or industry.
Some clients demand that you have general liability insurance before conducting business with you. Without it, they won’t contract you for a job. If you work in a high-risk industry like construction, where accidents and injuries are more likely, you should also consider getting coverage. You can never be too careful.
If you need help finding the right insurance policy for your business, contact us today and we will gladly assist you.
