Why You Need to Buy General Liability Insurance

As a business owner, you know that risk is an inevitable part of running a business. One of the most significant risks you face is the possibility of being sued by a customer, client, or third-party for damages or injuries resulting from your business operations. That’s where general liability insurance comes in.

What is General Liability Insurance?

General liability insurance is a type of insurance that protects businesses from financial losses resulting from third-party claims for bodily injury, property damage, and personal injury. It covers legal fees, settlement costs, and other expenses associated with defending against or settling a claim.

General liability insurance typically does not cover claims related to employee injuries, professional errors, or intentional acts. For these types of risks, businesses may need to purchase separate policies or riders.

It’s important to note that general liability insurance is not a one-size-fits-all solution. Every business has unique risks and insurance needs, so it’s important to work with a knowledgeable insurance agent to identify the right coverage for your business.

Why You Need General Liability Insurance

General liability insurance is an essential part of any business’s risk management plan. Here are some of the key reasons why you need to buy general liability insurance:

Protect Your Business Assets

If your business is sued and found liable for damages or injuries, it could result in significant financial losses. General liability insurance can help protect your business assets, including your property, equipment, and inventory, from being seized to pay for a settlement or judgment.

Cover Legal Fees and Settlement Costs

The legal fees and settlement costs associated with defending against a lawsuit can be significant, even if your business is not found liable. General liability insurance can help cover these costs, so you don’t have to pay out of pocket.

Build Customer Trust

Having general liability insurance can help build trust with customers and clients. It shows that you take your business and their safety seriously, and that you are financially prepared to handle unexpected incidents.

Meet Contract Requirements

Many contracts and leases require businesses to have general liability insurance. If you don’t have coverage, you may not be able to secure the contracts or leases you need to grow your business.

How Much Does General Liability Insurance Cost?

The cost of general liability insurance varies depending on several factors, including your business’s industry, location, size, and risk profile. On average, businesses can expect to pay between $400 and $2,000 per year for general liability insurance.

It’s important to note that the cost of a policy is not the only factor to consider when purchasing insurance. You also need to evaluate the coverage limits, deductibles, and exclusions to make sure the policy meets your business’s needs.

FAQ

What does general liability insurance cover?

General liability insurance covers third-party claims for bodily injury, property damage, and personal injury. It typically does not cover employee injuries, professional errors, or intentional acts.

Do I need general liability insurance?

Most businesses can benefit from having general liability insurance. It helps protect your business assets, cover legal fees and settlement costs, build customer trust, and meet contract requirements.

How much general liability insurance do I need?

The amount of general liability insurance you need depends on your business’s unique risks and exposure. Working with a knowledgeable insurance agent can help you determine the right coverage limits for your business.

Can I add additional coverage to my general liability insurance policy?

Yes, many insurance companies offer additional coverage options, such as commercial auto insurance, workers’ compensation insurance, and umbrella insurance, that can be added to your general liability insurance policy.

How do I purchase general liability insurance?

You can purchase general liability insurance through an insurance agent or broker. They can help you evaluate your business’s risks and needs and recommend the right coverage for your business.

Conclusion

General liability insurance is an essential part of any business’s risk management plan. It helps protect your business assets, cover legal expenses, build customer trust, and meet contract requirements. If you don’t already have general liability insurance, it’s a good idea to speak with a knowledgeable insurance agent to identify the right coverage for your business.