General liability insurance is an essential type of insurance cover for all businesses. If you run a small business, then you should get general liability insurance to cover you from certain legal claims. Claims could include advertising injury, bodily injury, reputational harm, property damage, copyright infringement, and more.
Bodily Injury
Claims for bodily injury are some of the most common, and injuries do not have to be severe for somebody to file a bodily injury claim against you. You might end up with this kind of claim being brought against your business if somebody trips over in your office or store, even if they are not very seriously injured.
People who are injured in your business and need medical attention might file a claim to cover their medical costs, which can get very expensive. Therefore, it’s important to make sure that you have general liability insurance coverage. You can get a quote for general liability insurance coverage from TheHartford.com; just enter more information about your business to get the details.
Copyright Infringement
Another situation where you will be glad that you have general liability insurance for your business is if you are accused of using somebody else’s work without their permission when it comes to your branding, ads, or marketing. Copyright infringement is a serious issue but sadly you might end up in this situation without realizing it if you don’t check before you design things like logos or come up with brand names. If another business accuses you of stealing their work, the claim will be covered by general liability insurance.
Property Damage
When you own a business, you may be held legally responsible if somebody’s property is damaged while they are on your premises. For example, if a customer damages an item such as a smartphone, handbag or even clothing when they are on your business premises, they might sue you for the cost of the item, repairs, and more. You may also be held responsible if there are damages to property belonging to a customer that you visit to do business or carry out work.
Advertising Injury
Defamation can be a serious accusation, so it’s worth having a general liability insurance policy that will cover any claims that occur if you are accused of defaming a business or another business owner. The sad fact is that you don’t have to say something bad directly about another business to be accused of defamation. You might have put something in your advertising that has been taken badly by another business, which can lead to this kind of claim.
What Isn’t Covered?
While general liability insurance is an important policy to get for your business, it’s important to bear in mind that it does not cover everything. While your general liability insurance policy should cover the above, you will usually need to seek out different types of insurance for the following:
Auto Accidents
If you use vehicles for your business, then general liability insurance won’t cover any accidents on the road. You will need to have a separate commercial auto insurance policy for any cars or vans that your business uses or owns. A commercial policy is generally needed when you own the car and use it for business. However, if you’re using a personal vehicle for work or renting a vehicle, you might only need a hired or non-owned auto insurance policy that covers commercial use.
Damage to Business Property
General liability insurance will not cover you for any damages caused to your business property or premises in the event of criminal damage, fire, or natural disasters. To ensure that you are financially covered should anything happen to your office, store, or warehouse facility, you should get commercial property insurance. This insurance policy will protect both the building and any equipment that you store inside.
Employee Injury or Illness
When an employee is injured or becomes sick in the workplace, you will need to be covered by a workers’ compensation insurance policy, as general liability cover will not pay out in this instance. In most states, it is a legal requirement to have workers’ compensation cover before you start hiring employees. It is a good idea to familiarize yourself with the specific rules and regulations surrounding workers’ compensation in your state.
Professional Service Mistakes
Mistakes can happen to the best of us, but if you are offering a professional service as part of your business, then you’ll need to have the right insurance cover. General liability insurance will not typically cover you in the event of a claim being made against your business due to a mistake that you have made when offering a professional service. You will need to get an errors and omissions policy, also known as professional liability insurance.
Why General Liability Insurance is Popular
While it is not a legal requirement to have general liability insurance when you run a business, it is very wise to get it. This is because every business owner is at some risk of liability claims, no matter how careful you are. Mistakes and accidents can happen, and if you don’t have the right insurance cover then you could end up in court and out of pocket as a result. Because of this, general liability insurance is the most basic kind of business insurance that you should get. It will ensure that you are protected from any claims against your business, protecting both your personal finances and your reputation.
How Much Is General Liability Insurance?
On average, businesses pay around $650 annually for this kind of insurance. However, there are various factors that can impact the price, so it’s a good idea to compare a few quotes before selecting the best one for your business. Your location, number of employees, the industry that you work in, and how much coverage you need will all impact the final premium.
No matter what kind of business you run, general liability insurance is the minimum type of insurance you should get for your company.
