Owning a small business is a big deal. While you’re busy starting and growing your own business, General Liability insurance can help you protect it. If someone claims that your business caused them harm or loss and they take legal action against you, that action can cost your business plenty in defense costs and payments for damages. Having a General Liability policy in place can mean the difference between keeping the doors open or going out of business when you face unforeseen circumstances.

General liability insurance is a type of business insurance that provides coverage for a wide range of common risks and liabilities that a business may face. It is often considered fundamental for businesses of all sizes and types. Here are some key points to understand about general liability insurance:

  1. Coverage: General liability insurance typically covers three main areas of liability:

    a. Bodily Injury: This covers costs related to injuries that someone else sustains on your business premises or as a result of your business operations. For example, if a customer slips and falls in your store, this insurance would help cover medical expenses and legal costs if the injured party sues your business.

    b. Property Damage: This coverage is for damage to the property of others caused by your business. For instance, if your employee accidentally damages a customer’s expensive computer during a service call, this insurance can cover the costs of repair or replacement.

    c. Personal and Advertising Injury: This covers claims of libel, slander, or copyright infringement in your advertisements, as well as other personal injuries. If someone claims that your business defamed them in an advertisement, general liability insurance could help cover legal costs.

  2. Legal Defense: In addition to covering the costs of settlements or judgments, general liability insurance also typically covers the cost of defending your business in court, including attorney fees, court costs, and other legal expenses.
  3. Limits and Deductibles: Policies will have limits on how much they will pay out for each claim and aggregate limits for the policy term. Deductibles are the amount you must pay out of pocket before the insurance coverage kicks in.
  4. Cost: The cost of general liability insurance varies depending on factors such as the type of business, its size, location, and the coverage limits. It is usually purchased as part of a broader business insurance policy.
  5. Legal Requirements: Some states or local jurisdictions may require businesses to have general liability insurance, especially if they operate in high-risk industries.
  6. Additional Coverage: Depending on your business’s specific needs, you may want to consider additional coverage beyond general liability insurance, such as professional liability insurance, product liability insurance, or cyber liability insurance.
  7. Risk Management: While general liability insurance can provide important protection, it’s also essential for businesses to have effective risk management practices in place to minimize the likelihood of accidents and liabilities.

Having general liability insurance can help protect your business from financial losses due to unexpected events, lawsuits, or accidents. It’s a crucial part of a comprehensive risk management strategy for businesses. Be sure to carefully review your policy and consult with an insurance professional to ensure you have the right coverage for your specific business needs.