With so many different insurance products available to businesses, choosing the right policies can be a challenge. One of the most important products you can purchase, though, is general liability insurance coverage. The better you understand what this policy does for your business, the easier it becomes to understand why it is so important.
What is General Liability Insurance Coverage?
General liability insurance works for businesses the way personal liability insurance works for homeowners, drivers, and even renters. It provides protection against claims of bodily injury or property damage that occurs on or by business property. For instance, if your staff fails to salt your sidewalk in winter weather and someone slips and injures themselves as a result, they could sue. General liability insurance coverage offers protection for your business from the costs of judgments against you or the settlements you reach.
Additionally, and in the case of nuisance lawsuits, general liability insurance provides protection for your legal expenses. You may be wondering why it is so important to protect yourself from legal expenses associated with your defense. The bottom line is that legal expenses alone for a highly-contested courtroom battle can be extensive—enough to put many small and even mid-sized businesses out of business.
Is General Liability Insurance Coverage Enough?
Of course, the total payout of a liability policy cannot exceed the policy limits, which leads many businesses to purchase commercial umbrella insurance in addition to extensive general liability insurance protection. You must choose the amount of liability protection you purchase for your business with care. Too little insurance could leave you, personally, on the hook for judgments against you your business cannot pay. That means the courts will seize your children's college funds, your retirement savings, or even your home to make up the difference.
If you've purchased a standard business owner's policy, or BOP, there is some general liability insurance coverage included in the policy. If you're working to minimize and manage risks, however, you'll want to purchase additional general liability protection as well as umbrella insurance to cover gaps and ensure that one mistake doesn't become a financial albatross for your business and personal finances.
In a world where it feels like attorneys show up at accidents faster than ambulances, general liability insurance coverage is one type of protection no modern business can afford to operate without. Worth with a trusted insurance agency to determine how much you need to protect your business and provide sufficient peace of mind.
For more information on general liability insurance coverage, contact a firm near you.
Share25 October 2021
I still remember the first time I had to chose an insurance policy; I was 17 years old and had just saved up enough money to afford my very first car. I was so excited to begin driving, but overwhelmed with all of the different auto insurance options. My father helped me chose a full-coverage policy that would cover the cost of my car if it were to become damaged in an accident. When I inevitably caused a small fender-bender as a new driver, my insurance company paid for my car repairs, so it sure was the best policy for me! Now that I am older and have learned a lot about home insurance and other types of insurance, I thought I would make a blog to help others who need insurance advice, like what my dad gave me. I hope I can help you make wise insurance decisions!