Commercial general liability insurance can help protect you and your business against many common lawsuits. General liability insurance is the most popular option for most businesses due to the broad spectrum of coverage. Similar to other liability insurance, commercial general liability coverage protects your organization from many common claims that many small businesses can face.
What does general liability insurance protect against?
Commercial liability coverage protects your business against four basic claim categories:
? Bodily injury: If a customer or other party suffers from bodily injury caused directly or indirectly by your organization, this insurance will help cover medical expenses and other damages brought about by case.
? Property damage: If you or your employees damage someone’s property (e.g., cars, homes, land, and other property of relative value), you may be held responsible for the price. General liability insurance provides the type and the amount of coverage you need.
? Personal injury: Accidental injury encompasses slander, libel, lost wages, mental anguish, along with other claims that do not are categorized as bodily injury.
? Advertising injury: This is much like personal injury in that it is as a result of slander, libel, or copyright infringement, but advertising injury involves another business rather than an individual.
Why do you want general liability coverage?
General liability insurance protects your business. Even if you think your organization is too small or you’re certain you won’t cause the damages or injury listed above, you should still be covered. In such a litigious environment, you need to be protected against frivolous lawsuits.
Some people see an opportunity to take advantage of unsuspecting small business owners who might not be covered against a claim. For example, suppose you run a commercial cleaning business and you also do most of your projects after business hours when the office buildings are empty. You may consider yourself at low-risk and don’t see the necessity of having commercial general liability insurance because you rarely, if ever, interact with your customers. But what if Public and Products Liability insurance of your employees damages expensive computer equipment by accidentally spilling cleaning fluid on it? You would be responsible for the damages.
Remember that it is possible to never be completely in control of every situation. Accidents happen. You can find always unforeseen problems that you could end up case, including bogus claims. Your commercial general liability insurance might help cover those claims. Unless you have many assets (and even if you do), your company could possibly be completely destroyed by one claim against your business.
How much commercial liability coverage does your organization need?
The amount of coverage will depend on your specific needs. You may only need a small amount of commercial liability insurance to cover the expense of potential claims brought against you. You should keep in mind that the cost of claims today has increased and people would like larger amounts for damages, making the right amount of coverage critical to safeguard your business interests. Consult with a trusted insurance broker who has your very best interests in mind and can provide recommendations for acquiring the perfect coverage for your business.