General Liability Insurance
Everything You Always Wanted To Know
About Commercial General Liability Insurance
(But Were Afraid To Ask)
Whether you’re a sole proprietor, LLC, or the owner of a large corporation, you’ve certainly heard of commercial general liability insurance. If you have initiated a sizable contract, you may have been told you must have general liability insurance.
If you hold just one insurance policy as a business, this is probably the one. That’s because most every business has a need for it. General liability insurance (also called business liability insurance) protects you and your business from “general” claims that could potentially cost you considerable money. Common claims include bodily injuries and property damage.
Every day, business owners face the tough decision of having to close their business or filing for bankruptcy. Dig deeper and you may learn that costly medical expenses or sky-high attorney fees that resulted from bodily injuries or property damage were the reason behind their horror stories.
But why assume such massive risks when a simple general liability policy could keep you, your business and your finances protected for years? Here are the most common questions asked about this important foundational commercial insurance that keeps your business safe:
Question #1: What Does a General Liability Policy Cover?
A general liability policy is designed to be the foundation of commercial insurance. Because it’s broad in nature, it tends to cover more, including:
- Legal Fees
- Damage to Property
- Medical Expenses
General liability insurance covers a broad range of incidents, including:
- Injuries on your business property (ex. Slips or falls)
- Bodily injuries to a third party caused by your work or an employee’s activities
- Property damage to a third party
- Bodily injuries or damage to another’s property resulting from your product’s defect
- Libel, slander or other business disparagement
- Liability of others you assume under contracts
- Copyright infringement
Question #2: What Accidents or Incidents Are Covered?
Question #3: Who Is Covered Under This Policy?
Under a general liability insurance policy, you and your company are covered as a single entity. Your employees are also covered, as long as the incident occurs during their work hours or while acting upon the company’s behalf.
100% Yes! Just kidding. There is no such law requiring business owners to have a general liability insurance policy. That said, under the heavily litigious world in which we live, it only takes one event and one lawsuit to bring your business to its knees. The next thing you know, you’re paying tens of thousands (or more) in court costs and medical expenses.
If you’re considering having just one policy to protect your business, your money and your family, this is the one we suggest first. It’s the advice we give. It’s the advice we follow ourselves.
That said, we’ve also met with several business owners who simply don’t need this policy. If you’re a sole proprietor working out of your home office, you may not be exposed to the same risks as the business owner employing 15 people while working downtown.
In other words, let’s talk. By learning more about your business, your needs and your fears, we can better suggest how you should consider minimizing your financial risks. Because just as we know of several business owners who lost everything because they turned down general liability coverage to save a little money, we know dozens of business owners who turned a potential disaster into a minor nuisance.
Question #4: Do I Need General Liability Insurance?