General Liability Insurance for Small Business Overview: A Quick Beginner’s Guide to Policies
General Liability Insurance for Small Business Overview: A Quick Beginner’s Guide to Policies
As a small business owner, you know that there are a lot of things to think about. From marketing and sales to operations and accounting, there’s always something that needs your attention. But one of the most important things you can do for your business is to get general liability insurance.
General liability insurance is a type of insurance that protects your business from financial losses that can occur as a result of lawsuits or other claims. For example, if a customer is injured on your property, or if your product damages someone’s property, general liability insurance can help you pay for the medical expenses, property damage, and legal fees associated with the claim.
In short, general liability insurance can help protect your business from financial ruin in the event of a lawsuit or other claim. And, as a small business owner, you can’t afford to take that risk.
What does general liability insurance cover?
General liability insurance typically covers a wide range of claims, including:
Bodily injury: This includes medical expenses, lost wages, and pain and suffering for people who are injured as a result of your business’s negligence.
Property damage: This includes the cost of repairing or replacing property that is damaged as a result of your business’s negligence.
Advertising injury: This includes claims for libel, slander, and other types of damage that are caused by your business’s advertising.
Personal injury: This includes claims for emotional distress, wrongful death, and other types of damage that are caused by your business’s negligence.
The cost of general liability insurance varies depending on a number of factors, including the size of your business, the type of business you operate, and the level of coverage you need. However, in general, general liability insurance is relatively affordable. For example, a small business with $1 million in coverage can typically expect to pay around $500 per year.
How to get general liability insurance
There are a number of different ways to get general liability insurance. You can contact a local insurance agent, or you can shop for policies online. When you’re shopping for policies, be sure to compare rates and coverage options to find the best policy for your business.
Why is general liability insurance important for small businesses?
General liability insurance is important for small businesses because it can help protect your business from financial ruin in the event of a lawsuit or other claim. Without general liability insurance, you could be personally liable for the costs associated with a claim, which could put your business out of business.
If you’re a small business owner, don’t wait to get general liability insurance. Get a policy today and protect your business from financial ruin.
Here are some additional tips for getting general liability insurance for your small business:
Get quotes from multiple insurers.
Compare coverage options and rates.
Make sure you understand the terms and conditions of the policy.
Ask about discounts for things like safety training or security measures.
Review your policy annually to make sure it still meets your needs.
General liability insurance is an important part of any small business’s risk management plan. By getting a policy, you can help protect your business from financial ruin in the event of a lawsuit or other claim.
Each business has its own needs, but you still want to make sure you are covered by some insurance, no matter how small your company is. In short, general liability insurance for small business tends to cover things like personal liability for members and the consequences associated with third party claims for property damage / injury. You can add additional items of medical injury for yourself and damage for your own property.
When you are looking over CGL policies, you’ll see terms such as “General Aggregate Limit”. This refers to the advertising or personal injury, medical payments, and/or fire damage. “Operations coverage” refers to the basic coverage afforded for property damage and bodily injury due from your or an employee’s negligence.
You might also see “Products and Completed Operations Limit” depending on your line of work. This coverage includes protection for those who manufacture or sell a particular product, or are contractors providing services. If damage occurs and your product or negligent service could be responsible, you’ll obviously face a lawsuit. This is a type of separate aggregate limit and the claims of its nature will not reduce the General Aggregate Limit, although it will still be subject to limits such as “Per Occurrence Limit” for each claim.
General Liability Insurance for Small Business Limits and Claims
The “Per Occurrence Limit” refers to the maximum amount that the policy will pay for a single claim arising from your Personal or Advertising Injury / Operations / Products and Completed Operations. Each of these claims WILL decrease the separate aggregate limit.
A few other terms you’ll find include Personal and Advertising injury, Fire Damage, Medical Payments, Bodily Injury, and Damage to 3rd Party Property, which are all self-explanatory.
Your industry will also play a role in the exact type of coverage you need. When searching for general liability insurance for small business, see if there is any tailored insurance available. Choose a company that specializes in businesses such as yours and have coverage tailored to risks prevalent in your particular field. Consider the risks you’ll likely be facing that might not be covered in a GCL or Business Owner’s Policy (BOP) and have those risks included in your coverage.
Another very important thing to look for is claims responsiveness. Only get general liability insurance for small business from a company that has a lot of positive reviews – especially regarding its claims response time. Claims should be easy and fast to process. One provider in particular to start with is Hiscox Business Insurance. The rates are fare, claims process is fast, and Hiscox offers free, instant quotes on its website.
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Nathan Florida
Nathan Florida
