Businesses are shielded from the most common risks with general liability insurance.
Legal fees for libel, property damage, and customer injuries are covered by business Liability Insurance. Personal and advertising-related injuries, such as copyright infringement and libel, are also covered by this policy.
When you sign a commercial lease, a landlord might, for instance, request a certificate of insurance from you. When applying for a lease, loan, or contract, many owners of small businesses are required to have general liability insurance.
A crucial aspect of risk management is finding general liability insurance at a reasonable price. General liability insurance costs approximately $42 per month for Insurance Romeo customers.
What does general liability insurance cover?
You are protected from common liability claims brought by third parties (individuals unrelated to your business) by the general liability insurance policy.
Your insurance policy will cover the costs of the person suing you for bodily injury, property damage, or advertising damage, including the cost of hiring a lawyer and the cost of any judgments or settlements ordered by the court.
The following are covered by coverage for general liability (CGL):
Bodily injury to third parties
Third-party bodily injury also covers the costs of legal representation if a customer sues your business. In the event of an accident caused by you or your employees, general liability insurance protects your company from financial responsibility.
Damage to third-party property
Your general liability insurance policy can cover the cost of making repairs if your business accidentally damages or destroys someone else's property.
Product liability
In some cases, a company may be sued for harm caused by its products rather than just for harm to customers or property. Items that are produced, circulated, or sold can cause harm to people and property.
Product liability coverage is frequently covered by commercial general liability policies (CGL). Defective product claims, label errors, and other product-related risks are covered by this kind of insurance.
Advertising injuries and personal injuries
General risk protection can cover the costs of legal defense and any subsequent settlement or judgment if a worker or entrepreneur is sued for copyright infringement, defamation, unjustified detention, or criticism.
Is there a need for general liability insurance?
It's a must for every business, but it's especially important if you own or rent a commercial space like an office. This insurance is required for small businesses that have direct contact with customers and clients, even if you do not own an office or other commercial space.
This insurance policy is absolutely necessary to maintain the financial stability of your business in the event that you are sued by a customer or a competitor. Due to its extensive coverage, General Liability Insurance is typically purchased by the majority of new small businesses.
What is excluded from general liability insurance coverage?
General liability insurance is required by most small businesses, but it does not cover all risks. Your policy does not cover the following types of protection:
Professional errors
Professional liability insurance, also known as errors and omissions (E&O) insurance, helps pay for lawsuits caused by professional errors like late deliveries and missed deadlines.
Accidents caused by employees
The workers' compensation policy pays for injured worker's medical bills and disability benefits. For managers, most states expect workers' compensation protection.
Theft or damage to business property
A combination of general liability insurance and commercial property insurance covers damage to or theft of business property and helps pay for the cost of replacing stolen property. Additionally, it is a policy that covers damage to property caused by fire or specific weather conditions.
Discrimination lawsuits filed by employees
The segregation claims made by workers have been recorded. Employment responsibility liability insurance (EPLI) can cover the costs of claims for improper termination, provocation, unfair termination, and separation.
Commercial vehicles
The majority of states require insurance for commercial vehicles to cover them. Business use is almost always excluded from personal auto insurance policies.
You can add hired and non-owned auto insurance (HNOA) to your Public Liability Insurance policy to protect personal, leased or rented vehicles used for work.
Liquor liability
When customers are drowsy, drunk driving, assaults, and vandalism at your establishment are covered by liquor liability insurance.
A separate policy or an addition to a general liability policy is required for alcohol-related services.
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