Why Do You Need General Liability Insurance?
by Admin
Posted on 16-07-2022 07:37 PM
What Is General Liability Insurance?
“what is general liability
insurance
?” this is a question many business owners ask.
And they don’t just want to know what it is, they want to know if they need it. The truth is, liability insurance is an essential part of an insurance plan. General liability insurance (gli) can help cover claims that your business caused bodily injury or property damage. This coverage is also known as commercial general liability insurance (cgl). You can get gli as a standalone policy or bundle it with other key coverages with a business owner’s policy (bop). We’re here to help you understand what insurance coverages your business may need.
Commercial general liability (cgl) insurance provides a financial safety net in case you’re sued for an injury that occurred at your business, for damaging a visitor’s property, or causing an advertising injury , such as slander, copyright violation, or libel. Your general liability insurance will pay for reasonable costs involved in your legal defense. This includes attorney, court, and expert witness fees. It also covers any financial losses you incur while participating in your defense. General liability insurance also covers judgments and settlements related to your case, as well as the plaintiff’s medical expenses. For cases of serious property damage or injuries, settlements and court judgments can easily bankrupt a small business.
Also known as business liability insurance , general liability insurance protects you and your business from “general” claims involving bodily injuries and property damage. Almost every business has a need for general liability insurance.
Your cover age needs will depend on your type of business, location and the risks associated with such a business. Businesses are generally categorized into two broad categories; higher risk and lower risk businesses. For example, if you are a web content writer or web designer (lower risk), your business risk will definitely be lower than a roofing contractor or security firm (higher risk business). Businesses considered as higher risk businesses obviously need a lot more coverage than those considered to be lower risk. That's why you need to know what is general liability insurance. Businesses in the lower risk category may consider purchasing a business owner's policy (bop) as opposed to basic general liability insurance.
What Is Liability Insurance?
Many small business owners have a
general
liability insurance policy to help protect their companies.
You may be asking yourself, “what does general liability cover?” this insurance helps protect your business from claims that it caused:
personal injury, like libel or slander.
Most small companies need this insurance, especially if you rent or own an office or commercial space. And many client contracts include requirements for general liability insurance. Even if these don’t apply to you, small businesses that work directly with clients and customers usually benefit from commercial general liability insurance, also known as a cgl policy. This insurance policy can keep your company financially stable if you’re sued by a customer or competitor. Because general liability insurance provides such important coverage , most small business owners buy the policy right after they start their business.
General liability insurance is often combined with property insurance in a business owners policy (bop), but it's also available to many contractors as a stand-alone coverage through the progressive advantage® business program. As a contractor or small business owner, you need some form of business liability insurance to safeguard your livelihood. A single accident could result in a lawsuit that you might not be able to handle. A great way to protect against this is to make sure you have liability coverage that matches your level of exposure. Some employers or clients might also require you to carry a certain amount of general liability before you can work for them.
General liability insurance protects a business against claims of bodily injury and property damage from customers and clients. These types of claims may result from your company’s products, services or operations. Without general liability insurance, you could end up paying out of your business’s income, and in a worst-case scenario even go bankrupt. General liability insurance is sometimes called “business liability insurance” or “commercial general liability insurance. ”.
What Does General Liability Insurance Cover?
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. Here's what you need to know about this important coverage.