What Is General Liability Insurance and Why Do You Need It?
4 Minute Read
General liability insurance is an important piece of business insurance that helps protect your personal assets from financial risk in the event that you are sued for negligence or have another claim brought against you as the business owner. The policy covers your business from third-party liability claims and legal defense costs if something goes wrong. General liability insurance is important to your company because it protects your business from being held personally liable for any accidents or injuries that occur on premises or because of services provided by your company. As a small business owner, general liability insurance can be pricey, but it’s a cost that is necessary to maintain. To learn more about what general liability insurance is and why you need it, keep reading.
What Is General Liability Insurance?
General liability insurance covers third-party claims such as bodily injury, property damage, and false advertising. While there are many different types of business insurance policies, general liability insurance protects your company against claims brought about by third parties. While each business is different, there are certain risks that most businesses have. These risks include bodily injury, property damage, personal injury, advertising injury, and medical payments. General liability insurance helps cover these risks while also covering any other risks your business may face. General liability policies often come with a limit on the amount of coverage they provide. That means that the amount of money they will pay out to cover damages and claims is limited. Although it’s important to know what type of coverage your general liability policy has, it’s also important to have enough coverage to protect your assets.
Why Do You Need General Liability Insurance?
In the event that something goes wrong with your business, general liability insurance will step in to help mitigate the damage. General liability insurance protects your business from being held responsible for third-party claims such as bodily injury, false advertising, and property damage. Remember, your business could be held liable for damages caused by the actions of employees, contractors, or maybe even the negligence of a client or visitor, even if those parties aren’t employed by the company. That’s why it’s so important to have general liability insurance. Without it, your business would be responsible for any damages and could end up paying a hefty amount out of pocket. General liability insurance covers third-party claims and legal defense costs, as well as any settlements that need to be paid out. General liability insurance also covers any legal defense costs your business incurs while being sued. Remember, it’s not required that you be at fault for a claim to be made against your company. Someone could be visiting your workplace, have an accident, and still make a claim. Liability insurance can help cover those costs.
How to Find the Right General Liability Insurance Plan
When comparing general liability insurance policies, it’s important to know your business’s risk factors. Risk factors are anything that could put your business at higher risk for a claim. When comparing policies, keep an eye on the amount of coverage, deductible, and if the policy is renewable or not. You should also compare the cost of each policy to ensure that you are getting the right coverage for your company’s risk level. It’s important to shop around and make sure that you are comparing apples to apples when choosing a general liability insurance policy. General liability insurance policies cover different things, so make sure that you’re looking at policies that are comparable to one another.
Conclusion
General liability insurance is an important piece of business insurance that helps protect your company against third-party liability claims and legal defense costs. While there are many different types of business insurance policies, general liability insurance protects your company against claims brought about by third parties. General liability insurance covers bodily injury, property damage, personal injury, advertising injury, and medical payments. It also covers any other risks that your business may face. When choosing a general liability insurance policy, compare the amount of coverage, deductible, and if the policy is renewable or not. Most importantly, remember that general liability insurance is an important business insurance policy that protects your company from being held financially responsible for third-party claims.