Serious business owners carry general liability insurance coverage to protect against lawsuits. A service business is particularly at risk if the client isn’t happy with the work. Having the right insurance can save your business from getting toppled overnight. Here are key points about the significance of general liability insurance.
What Does Liability Insurance Cover?
General liability insurance covers bodily injury, property damage, or personal injury. So if a visitor gets injured at your establishment or damages your property, general liability insurance covers it. Personal injuries include libel and slander.
What Does General Liability Insurance Cover for a Small Business?
Small business owners get liability coverage through a Business Owners Policy (BOP). This plan combines general liability insurance with commercial property insurance at a lower rate than buying each plan separately.
General liability coverage pays for legal costs, including attorney fees and settlements. It also pays the medical bills of injured victims at your establishment. The plan also pays administrative costs to handle your claim. The coverage further pays to repair or replace damage to your property caused by a stated peril.
What Does General Liability Insurance Not Cover?
Just like any other type of insurance policy, general liability does not cover everything imaginable relating to business risks. But what it will cover may require purchasing separate coverage. General liability insurance, for example, doesn’t cover vehicle accidents, but a commercial auto insurance plan does. If one of your workers, as opposed to a visitor, gets injured at your property, it won’t be covered by general liability insurance. However, it will be covered by workers’ compensation insurance.
Dangers of Not Having General Liability Insurance
Without general liability insurance, you could spend money from your pocket to fight a lawsuit. Your assets may be in jeopardy if a significant disaster happens at your establishment and someone tries to hold you personally responsible in court. Unless you’ve got millions in the bank, you need general liability insurance to protect the assets you do own.
When to Buy General Liability Insurance!
General liability insurance can help your company stay in business when disaster strikes. Weighing the most significant risks that impact your business will help guide you toward the specific coverage you need. If you are planning to launch a startup, now is the time to include insurance in your planning.