You must have heard about general liability insurance. But what does it mean and why would you need it? General liability insurance is also referred to as commercial general business liability. It is a significant form of coverage in the country, protecting business assets and making payments for any obligations of the company. For instance, it can cover medical costs when an employee is injured while working for your firm. If someone’s property is damaged by your employee, this is also covered.
General liability insurance covers the cost of your legal defense and settlement if your business is sued. General liability insurance covers a variety of risks. These can include non-monetary losses, compensatory and punitive damages, and losses incurred by the injured party.
Why Does Your Business Need Liability Insurance Cover?
We are part of a litigious society. Even if you think that it will never happen to you, the unthinkable can happen. It doesn’t cost as much as you think, with annual premiums ranging from $750 to $2000. This is a wise investment considering the financial outlay you need to fight a case in court.
You can purchase general liability insurance as a separate entity, but it can also come with a Business Owner’s Policy. This comes as a bundle combining property and liability insurance as one. If you have already invested in a BOP, you must take into account the limit of the coverage. In most case, business owners find it inadequate, propelling them to look for a separate general liability insurance cover.
What Kind of General Liability Cover Does My Business Need?
The amount of coverage your business needs is dependent on two major factors. One is the type of business you run, and the other is the risks associated with it. Thus, a building constructor would need greater coverage from a freelance photographer. You should note that the location of your business also plays a significant role in this respect. Some states in the USA tend to award more damages to the injured party who has claimed personal injury. A financial advisor can guide you to determine how much coverage you need for your business. They can evaluate your business by assessing the risks, BOPs, and yearly revenues. As already mentioned, if you fall in the category of low-risk businesses, a Business Owner’s Policy may be enough for you. But it pays to invest in general liability insurance cover.
General liability insurance can protect your business from all kinds of debts. If you are a tenant, it can cover the damages you have caused to the property that you have taken as rent. So, if you want to protect your best interests, start comparing business liability insurance quotes. Talk to the experts, and invest in the policy that suits you best.