General liability insurance is an essential type of coverage that can help protect your business. It provides protection against claims made by third parties for bodily injuries or property damage that your business may have caused. Without this coverage, you would be responsible for paying these claims out of your own pocket. General liability insurance can also be referred to as business liability insurance, commercial general liability insurance, or comprehensive general liability (CGL) insurance. It is important to have this coverage in place to safeguard your business and its assets.
Watch this video for more information about your general liability coverage options.
Liability insurance coverage helps protect you from costly general liability claims that can happen during normal business situations, such as:
You may also need this coverage if your clients request it. Many clients want to confirm you have general liability coverage before they sign a contract with your business.
When your business is covered with general liability insurance, your coverage can help pay for the following examples:
State laws don’t usually require business owners to carry general liability insurance. But it’s still a good idea to have this liability insurance coverage. If a customer sues your business and you don’t have coverage, it can risk your business’ finances and personal assets.
Understanding your state's general liability insurance laws is important. Work with a local insurance agency or our dedicated small business insurance team to help you choose the right business liability insurance.
General liability insurance is designed to help cover the cost of claims that may arise during normal business operations. If your business doesn't have coverage, you may have to pay for these costs out of pocket. A general liability insurance policy is meant to help cover claims that your business may be held responsible for. These claims can include:
General liability insurance is not designed to cover every type of claim your business might face. For instance, it does not offer protection against claims related to work-related injuries or illnesses sustained by your employees. In such cases, workers' compensation insurance can help cover their medical expenses and ongoing care costs. Similarly, if your business property gets damaged, property insurance will prove to be useful. Lastly, professional liability insurance can cover any errors made in your business' professional services.
Liability claims can be a significant financial burden for businesses. Shockingly, statistics indicate that around 40% of small businesses are likely to experience a liability claim within the next decade. Slip and fall accidents, in particular, are the most common reason for emergency room visits, and can result in an average claim cost of $35,000. If a claim escalates to a lawsuit, the average cost of defense and settlement can exceed $75,000. Without general liability insurance, businesses would be required to pay these costs out of pocket, which could potentially lead to bankruptcy.
In addition, many companies require proof of insurance, in the form of a certificate of insurance, before working with another business.
You can start a free business insurance quote online today. We’re an insurance company you can count on. We’ve been helping small businesses get their needed coverage for over 200 years. Save time and get your business insurance online today.
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