Making sure your business is protected against all eventualities is one crucial step you must not take for granted in your business venture. There are different types of insurance from too. One type of insurance that’s common across all industries is the general liability insurance. General liability is a legal requirement to do business in many states, and it’s there to protect your business and the people it comes into contact with.
What is General Liability Insurance?
General liability insurance is there to cover damages to third parties. This means that if someone is injured in an accident that’s caused by your business, then the insurance company will pay out the resulting costs on your behalf.
Although this type of insurance covers you if other people are injured, it doesn’t protect you, your employees, or your equipment. There are other types of insurance to cover this, but general liability insurance is limited to third party damages.
For example, if you own a restaurant, and you’ve just mopped the floor, but forget to put out a “wet floor” sign, and someone slips and breaks their leg, your company would be liable for the costs of that person’s medical expenses. General liability insurance is there to cover you in these cases.
Why do I need general liability insurance?
Generally speaking, you need general liability insurance so that you can protect your business from the public who may be looking to make a claim against your company. These claims usually revolve around injury, illness or property damage that was caused by your business’s work or a product you have sold or invented.
What does general liability insurance cover you for?
- Costs for property damage claimed against your business.
- Administrative costs associated with a claim.
- Court costs, just as any lawyers needed or settlements.
- Medical expenses if someone were to get injured.
- Advertising injury claims against your business.
Remember to double-check what is included in your insurance plan, as many general liability insurance covers do not account for:
- Auto accidents caused by you or an employee (when driving for work).
- Personal injury claims made by an employee.
- Damage to your business’s own property.
- Illegal acts done on purpose.
Every business is different and therefore exposed to slightly different risks. You can get small business general liability insurance that reflects that by offering a tailored package to fit your business.
You want to make sure you’re covered for every eventuality, but equally, you don’t want to be paying for things you don’t need, which is why a tailored plan works well for many businesses. A good provider can give you a quote for tailored cover online and with minimal hassle.
Check the Reviews
When it comes to something as important as your business’s insurance, you want to know you’re with a trustworthy provider with a solid reputation.
If an accident were to happen, you want your insurance company to act quickly and sort it out for you. You don’t want to spend time chasing them down and haggling over the details.
Thankfully, you can get a good idea of a company’s standard of service from reviews. If you’re seeing lots of negative reviews, then it’s worth staying clear even if the price might be attractive.
You Can’t Put a Price on Peace of Mind
Sometimes it can be worthwhile to pay that little bit extra and know your business is properly protected. You don’t want to be worrying about what happens if something goes wrong, you want to get on with growing your business, so go with a strong policy and get back to work.
You can’t do your best work if you’re worried about what might go wrong, and the best way to put those worries to bed is by getting good general liability insurance.
There are many dangers of not having general liability insurance, such as defense and settlement costs if any cases were to go court. When someone was to successfully make a claim against your business, then you will need legal counsel as well as cover the costs if the claim were to end up in court – this can be as high as $75,000.
If a case were not to even get to court, there are still costs associated with such claims. This is because of admin work, legal secretaries, and settlements/judgments.
While some businesses can survive these costs, a general liability policy is cost-effective. It doesn’t matter how much money your business can spare, having such a policy in place can stop any major mishaps from causing your company to go bankrupt – and no business is immune to this.
You can’t put a price on peace of mind.