If you own and operate a small business, there are risks as well as rewards that come with it. One of the ways to best safeguard your small business is general liability insurance. This type of insurance can be put in place to make sure you’re not hit with a devastating financial blow to your business. InsureWise LLC is here to talk about what general liability insurance actually covers as well as some things that you can’t count on it to cover as well.
What Does General Liability Insurance Cover for a Small Business?
There are several liability claims that can absolutely ruin a small business because they simply don’t have the funds to cover the cost. This is why general liability insurance is so important for small businesses. Following is what you can plan on a general liability insurance plan to cover.
– Personal Injury & Property Damage: What many business owners may not realize is a simple slip and fall accident on their property can end up costing them up towards $20,000. Anytime a customer is injured on the property, you want to know you have coverage to help you pay for it. This goes for damage to property as well. If your employees are doing work on a customer’s property and accidentally causes damage, general liability insurance will cover that damage as well as any damage to your property.
– Copyright Infringement: If you end up using someone else’s work in your business at all without their permission, you could be facing copyright problems. General liability covers it.
– Advertising Injury: If your company defames another business, it can lead to advertising injury and a lawsuit. Good thing general liability covers that.
– Reputational Harm: Sometimes, you may say something publicly about another business that can end up harming their business. The negative effects on their company may require your general liability to cover it.
What are General Liability Insurance Exclusions
It is important that business owners know that general liability doesn’t cover everything. There are several things that your general liability won’t touch. Here are the things it won’t touch:
– Commercial Auto Accidents: You will need to have commercial auto insurance coverage to help with any accidents while employees were driving for work.
– Employee Injury & Illness: Anytime your employees get hurt on the job or fall ill, your general liability will more than likely not cover it. This is why you have worker’s compensation.
– Property Damage to Your Commercial Premises: Any damage to your commercial property won’t be covered under general liability. You will need property insurance.
– Service Errors: If there is a problem with services your company gives, it won’t be covered.
– Policy Limit: Any claim that exceeds your policy limit will not be covered.