What is Business Liability Insurance?
General liability insurance protects businesses and their owners against “general” claims involving bodily injury, property damage, and lawsuits related to both. It is the first policy usually purchased by small business owners as it is often required when signing customer contracts and commercial leases. The general insurance covers all costs related to customers and customer injuries that occur near your property, damage you cause to other people’s property and other advertising errors. It simply handles all of the most common lawsuits arising from day-to-day business activities, such as customer interaction, property rentals, and customer relationships.
What does General Liability Insurance cover?
This form of Business Insurance settles lawsuits from third parties. This refers to the lawsuits brought by non-employees such as clients, landlords, vendors, customers, and so on. In general, it covers third-party lawsuits caused by any of the following:
- Damage to property: It covers all damage to someone else’s property caused by your activities or those of your employees while they were working for you. This includes a lawsuit filed by your landlord due to a fire outbreak in your office that destroyed all or part of his building.
- Physical injuries: It covers all types of lawsuits arising from bodily injury suffered by a customer or customer while he was in your business. This includes a lawsuit filed by a customer who slipped and broke a leg in your office.
- Damage to reputation: It covers lawsuits arising from libel. This includes a lawsuit filed by a competitor over a defamatory comment posted by you or your employees on social media platforms.
- Copyright Infringement: It covers lawsuits arising from using someone else’s idea without asking their permission. This includes a lawsuit brought by a competitor because of the similarities in your marketing and advertising materials and theirs.
How Can I Save Money on General Liability Insurance?
Depending largely on the type of business, general insurance can be quite pricey. There are a number of ways you can save money on your General Liability Insurance.
- Avoid overestimating: When estimating gross income and payroll for the coming year, many business owners overestimate because of their high hopes and expectations for their business. These figures tend to increase the premium they pay because the premiums on most policies are calculated based on gross income and payroll figures.
- Make sure you are well covered: Some entrepreneurs sacrifice their good coverage for lower premiums. They end up getting large claims that can’t cover what little money is saved from lower premiums.
- Pack your policies properly: When you bundle your General Liability insurance with some other policies, such as your Business Personal Property, you get a discount on multiple policies.
If you need information on business liability insurance or if you want to save some money on your general liability insurance, you can contact an insurance company and get a quote today.