A general liability insurance policy provides broad protections to cover the expenses associated with these and other situations.
Because all businesses face the risk of accidental injury or damage, experts recommend that virtually all businesses carry a general liability policy. This important coverage helps with expenses including:
- Court costs
- Defense costs
- Medical payments
A general liability policy covers a wide range of situations including libel, slander, copyright infringement, medical payments for physical injuries, and property that is damaged as part of your business operations.
General liability insurance offers pretty broad liability coverage for your company, but there are risks that it doesn’t cover. For these risks, there are different insurance products you can buy to protect yourself.
Here’s what general liability insurance doesn’t cover:
- Damage to Your Own Property: You need to purchase commercial property insurance to protect your business’s own property against damage or theft.
- Professional Negligence: Negligence in providing professional services is covered by professional liability insurance, not general liability insurance. For example, if you’re a software engineer and your services cause a client’s website to crash and lose revenue, then the client could sue you for professional negligence.
- Auto Claims: Injuries from the use or operation of a company vehicle are covered under a commercial auto insurance policy.
- Employee Injuries: Employees who are hurt on the job should file claims under a workers’ compensation insurance policy.
- Product Defects: Product liability insurance covers manufacturing, design, and marketing defects.
- Lost Business Income: When businesses have to close shop or scale back operations due to an unexpected event, it can cause a significant loss in income. This is covered by business interruption insurance.
It is possible to combine general liability insurance and some of these coverages—like commercial property insurance, business interruption insurance, cyber liability insurance, or professional liability insurance—in a business owners policy (BOP). The benefit of a business owners policy is convenience and affordability. Instead of having multiple insurance policies, potentially from different insurers, you have a single policy from one insurer. Since everything is one package, a BOP also lets you save money on premium costs.
As a small business owner or contractor, general liability insurance is a necessity to running a successful and protected organization. Within the blink of an eye, a single accident could result in a lawsuit that your business is unable to handle. In addition, some clients or employers may require you carry a certain amount of general liability insurance before working for them.
Interested in learning more about a general liability insurance policy for your business? At Knight-Dik Insurance, we’ll work with you to design coverage that protects your business from a variety of risks, unique to you. For a free insurance premium analysis, simply contact us here or call 800-286-6353.