General Liability Insurance Guide
What is General Liability Insurance?
General liability insurance is a type of small business coverage. It deals with protection of business property and coverage from claims involving negligence, bodily injury, or property damage. It is also important to have this coverage for lawsuits your business may encounter.
What Does General Liability Insurance Cover?
This type of coverage may help protect you from these things:
- Bodily Injury – bodily injury refers to when a third party gets injured while on your property. This person may make a claim against your business, and this is where general liability coverages comes in handy. For instance, if someone slips and falls in yours store, and decides to make a claim against your business, then general liability would help to cover the costs associated with the claim.
- Property Damage – If one of your employees causes damage to someone else’s property, and they file a claim against your business, then general liability can help cover those costs. For example, if your employee is operating a machine on someone’s property and that machine ends up damaging their property, that’s where the coverage comes in.
- Advertising Injury – this includes things like libel, slander, and copyright. If someone makes a claim against your business involving these things, then your general liability coverage can help cover those costs.
- Product Liability – if your business sells or distributes a product that inadvertently injures a customer, they could file a claim against your business. An example could be that your business produces candy and that candy accidentally causes someone to get sick after eating it. Your general liability coverage financially helps with the claim.
What Does General Liability Not Cover?
Here are some common things that general liability does not cover. Talk to your insurance agent to get coverage to address these things:
- Professional Errors
- Employees who have gotten injured on the job
- Property damage for your business
Do I Need General Liability Insurance?
While there is no federal law mandating that you have general liability coverage, it is important to have it for your business. Accidents happen unexpectedly, and sometimes it is out of your control. Having general liability is important for all small businesses to have.
How Do I Get Coverage?
Call up your insurance agent! They can help you get the right coverage for your business. You should also ask them about getting a BOP (business owners policy). It is a bundle of common insurance coverages for small businesses. Your agent will know how to best protect your business and can get the coverage your business needs. They are also able to help answer any questions you may have about general liability, or any other coverage!