General liability insurance can help in paying for medical costs and legal fees associated with bodily harm and property damage for which your business may be legally responsible. It's an essential kind of insurance for owners of small businesses. General liability insurance is a requirement for almost all businesses.
General liability insurance is a type of liability insurance that helps in protecting your company against client and customer claims that you caused them injuries and property damage. These kinds of claims could be a result of the goods, services, or activities of your business. Without general liability insurance, you can find yourself paying out of the profits from your company and, in the worst situation, even declare bankruptcy.
The terms "commercial general liability insurance" and "business liability insurance" are also used to refer to general liability insurance.
Accidents do happen, even though it's reasonable to think that you're not in the business of intentionally injuring clients or stealing their belongings. Despite your best efforts, some things simply cannot be avoided.
Unfortunately, you may still be responsible for harm and damages resulting from a sudden occurrence.
By purchasing general liability insurance, you can transfer this risk from you and your company to your insurer. Your general liability insurance policy will cover the injured party's expenses, such as repairs or medical bills, as well as your company's legal defense in the event of a claim.
In other words, general liability insurance might save you from having to close and liquidate your company.
A company's general liability insurance protects it from a wide range of potential claims, including those for bodily harm, property damage, copyright infringement, reputational damage, and harm to its advertising.
General liability insurance does not cover commercial auto accidents, worker sicknesses and injuries, company property damage, professional service errors, claims that exceed the policy limit or criminal activity by you or your staff.
Following are some situations where having business liability insurance is advantageous:
Businesses of the following categories frequently purchase general liability insurance:
The majority of small businesses choose general liability insurance coverage limits of $1 million per event and $2 million overall. A single general liability insurance claim under this type of policy may be paid up to $1 million, with a $2 million cap on all claims made throughout the policy period. Usually, the policy's duration is one year.
The average general liability insurance rate is $42 per month. The cost of general liability insurance for 17% of Insureon's small company clients may be less than that.
The price of general liability insurance coverage varies depending on your industry, region, business size, and the quantity of coverage you require.
By selecting the insurance limits that most closely match your requirements, you may control the cost of general liability insurance. Combining general liability insurance and commercial property insurance under a single policy is convenient and cost-effective. However, you can also purchase general liability insurance on your own.
The following are the key factors that determine the cost of general liability insurance:
Covering claims filed by the general public against your business is the primary purpose of general liability insurance. These claims may be made for physical harm, disease, or property damage brought on by the operations of your company or the sale or production of one of your products. Additionally, it might protect you in the event that you are blamed for harming your landlord's property.