As a business owner, you are responsible for protecting your business and its assets. One way to do this is to purchase general liability insurance. General liability insurance is a type of insurance that protects businesses against financial losses resulting from claims for property damage, personal injury, and other types of liability. This article covers the basics of general liability insurance and what you need to know about this important coverage.
What is Comprehensive Liability Insurance? General liability insurance is a type of insurance that covers various liability risks that a company may face. This insurance protects companies against financial losses due to property damage, personal injury, and other claims.
Who Needs Comprehensive Liability Insurance?
General liability insurance is recommended for all businesses, regardless of size or industry. Any business that interacts with the public through its products, services or physical location is subject to the risk of liability claims. For example, retailers may face slip-and-fall claims, and software companies may face copyright infringement claims.
What is Comprehensive Liability Insurance?
General liability insurance covers a range of liability risks, including:
Personal Injury – This coverage protects businesses against financial losses resulting from claims for personal injury caused by business operations or products.
Property Damage – This coverage protects businesses against economic losses resulting from claims for property damage caused by their business or products. Advertising Infringement – This indemnity protects businesses against financial losses resulting from defamation, defamation, or claims of copyright infringement caused by advertising.
Product Liability – This coverage protects companies against financial losses arising from claims for damage resulting from personal injury or property damage caused by a product.
Finished Works – This coverage protects companies against financial losses resulting from claims for injury or property damage caused by finished works.
How much does comprehensive liability insurance cost?
The cost of general liability insurance depends on several factors, including the size of your business, your industry, your location, and the coverage you choose. On average, small business general liability insurance costs between $400 and $1,000 per year. However, larger, riskier businesses may pay more.
How to choose comprehensive liability insurance
There are several factors to consider when choosing general liability insurance.
Coverage Limit – Choose a coverage limit that is appropriate for your business risk. Consider the maximum amount of damages a claimant can claim and choose a coverage that provides adequate protection.
Deductibles – Consider the deductibles you are willing to pay out of pocket before coverage begins. The higher the deductible, the lower the premium, but it also means you will pay more if a claim occurs.
Insurer – Choose an insurer with experience in providing general liability insurance to companies in your industry. Look for a provider that is reputable, financially stable, and able to customize insurance to your specific needs.
Insurance Terms – Read the insurance terms carefully to understand what is covered and what is not covered. Please note any exclusions and limitations that may apply to your business.
Conclusion
General liability insurance is an important coverage for any business, providing protection from a wide range of liability risks. It is important to understand what is covered and how much coverage you need to adequately protect your business. When selecting a policy, consider your business’s risk exposure, budget, and insurance provider. With the right coverage, you can have peace of mind knowing that your business is protected from unexpected liability claims.