An essential coverage for small business owners is liability insurance. When bodily injury and property damage is caused by business activity, this insurance coverage helps protect you from claims. Every business faces claims that can come up during normal operations and the importance of liability insurance is necessary. Your business can have a huge financial risk without coverage, as you have to pay out of pocket to cover claims. Today, we at InsureWise would like to continue expressing the importance of having general liability insurance, no matter what your small business is.
What is General Liability Insurance Coverage
General liability insurance is one type of liability insurance that many small business owners. General liability insurance is also referenced as commercial general liability insurance or comprehensive general liability insurance. As mentioned, it can help protect you from claims that your business. Some examples include:
– Somebody gets hurt.
– Another person’s or business property is damaged.
– Through slander or libel, reputational harm was caused.
Keep in mind that just one type of liability coverage is general liability insurance. It doesn’t cover every kind of liability claim because of this. For instance, it won’t help your employees recover from a work-related injury or illness. You would need to have another type of coverage called workers’ compensation insurance for this type of claim. In order to give your small business comprehensive protection, you will likely need to get other types of liability insurance.
Features & Benefits of Liability Insurance
One of the benefits of liability insurance is having your business protected from certain claims. A few additional benefits and features include the list below.
1) To defend your company in a lawsuit, your business’ legal costs get help with payment.
2) In order to offer peace of mind you can finish a job if the unexpected happens, insurance proves you have insurance coverage to clients and customers.
3) If they get a work-related injury or illness your employees are protected, and it helps them recover.
4) Should they get hurt in your business, customer medical bills and medical expenses can be paid.
Why is Liability Insurance Important for Small Businesses?
1) Provides Business Maturity. You want to show your customers that you’re responsible and trustworthy as a business owner. Carrying a general liability insurance policy keeps you covered. During your daily business operations, it shows you understand the risks your company faces. To help you prove to customers that you have liability coverage, you are usually given a certificate of insurance.
2) Livelihood is Protected. Some of the most common business situations lead to liability claims, and they can be expensive. If you or your employees are involved with the list below, your business can be at a greater risk of liability claims.
– Work on a client’s property
– Represent your business
– Meet with clients face to face
3) Strengthens Getting a Lease. Some landlords may ask you to see a certificate of liability insurance if you’re trying to rent an office space or building to operate your business. This provides evidence that your business is protected from certain liability claims.
4) Extend Coverage Easily. Adding people to your liability policy may be required with contracts at times. Those who already have coverage can make adjustments easier.