What is General Liability Insurance?
General Liability Insurance (GLI), sometimes referred to as Business Liability Insurance and Business Liability Insurance, helps protect your business from claims for personal injury and property damage. These types of claims can occur during normal business operations. Without the cover, you would have to pay the damage from your pocket.
What does General Liability Insurance Covers?
General liability insurance helps cover your costs in responding to allegations that your business has caused property damage or personal injury. It can help you pay:
- Clients or client medical costs if they slip into your business.
- Repair costs to repair a wall that accidentally damaged an employee while working at the client’s home
- Legal costs to protect your business in proceedings
- Customer statements and agreements or customer claims.
General Liability Insurance can also helps to cover claims of :
- Physical injury or property damage caused by your business.
- Defamation due to malicious prosecution, defamation, defamation, illegal expulsion, infringement of personal privacy, etc.
- Advertising injuries such as copyright infringement of company advertisements.
- Medical costs if your client or client is injured while visiting your business
- Damage to rental properties caused by indemnified losses such as fires, lightning strikes and explosions.
How much does general liability insurance cost?
The cost of your general liability insurance depends on several factors.
One factor is your industry. Companies in high-risk industries pay higher costs than low-risk companies. For example, a construction company may charge a higher fee than a consulting company. Other factors that may affect the cost of your general liability insurance include factors in your business:
- Many years of experience
- Building Condition
- Policy details such as coverage restrictions and out-of-pocket expenses
- Insurance claim history
Why Do You Need General Liability Insurance?
Many business owners are wondering why they need general liability insurance. The answer is simple. As a small business owner, this insurance protects you from costly claims. This is useful when complaints occur in the following common business situations:
- You or your employees on behalf of a customer.
- Meet with customers face to face
- Working on or with someone else’s property
- Use of third party offices for commercial activities
- Advertise your business
You may need this coverage even if you have customers who request it. Many customers want to confirm that they have this coverage before they sign a contract with your company. You can prove that you have liability insurance with an insurance certificate.
Is commercial general liability insurance a legal requirement?
State law usually does not require employers to take out general liability insurance. However, we recommend that you have this coverage. If a customer sues your business and you do not have coverage, you may endanger your business’s financial and personal assets.
Understanding your state’s insurance law is important. Work with your local insurance agent or a dedicated small business insurance team to help you make the right decision when choosing commercial liability insurance.