In 2018, only 54% of small business owners bought general liability coverage. This statistic is shocking as general liability plans are fundamental for companies.
What Does General Liability Insurance Cover for Commercial Property?
What does general liability insurance cover and why is it such a necessity? Does your business need more policies? Read on to learn everything you need to know.
What Does General Liability Insurance Cover?
What does general liability insurance cover exactly? Claims that come out of normal business operations are often covered by these plans. Without coverage, you’ll have to cover costly claims out of pocket.
General liability policies cover claims caused by your business. These claims can include injuries, property damage, reputation harm, and advertising injuries.
This type of claim only refers to a third party. For example, if a customer gets injured inside your place of business, they may sue you. You can cover claim fees and medical bills with this type of insurance plan.
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General liability and workers’ comp insurance are not the same. To protect your employees from injury and illness, you’ll need a separate workers’ compensation policy.
If your employees work on a client’s property, they are at risk of damaging it. Again, this claim only refers to third-party property damage, not business property damage.
This policy covers replacement and repair costs for employees that cause damage to a customer’s property.
A customer can sue your business if you or an employee says something slanderous or libelous. You’ll want to defend your business reputation, but it may cost you. You can cover the legal costs with general liability insurance.
A commercial general liability policy can help your business if you get sued for copyright infringement. A common example of this is getting sued by a photographer because you used their photo without consent.
Types of Liability Insurance
The general liability definition is broad as there are many types of liability insurance that you can get from these insurance services.
For example, a business may opt for extra liability coverages like commercial umbrella insurance, employment practices insurance, management insurance, and commercial auto insurance.
General liability insurance policies come with a limit. If you need additional coverage for costlier claims, you can get a commercial umbrella insurance plan.
Employment practices liability insurance covers legal defenses, settlements, and judgment if any employee, current or not, sues the company for wrongful termination.
Management liability covers directors and officers of the business from expensive claims. Commercial auto insurance can protect you and employees on the road when driving a business vehicle.
Do You Need General Liability Insurance?
General liability insurance is the bare minimum for businesses. Often, a company will need other coverages. The state your business is in will determine which insurance plans you need.
Don’t let a costly claim bankrupt your company.
Now that you know the answer to ‘what does general liability insurance cover?’ you can understand why it’s a necessity.
For more information that businesses need to know, check out our other blog posts.
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