When Is General Liability Insurance Required?
Owning and operating a business comes with a variety of challenges, particularly insurance-related topics. General liability insurance covers a number of common accidents that business may face day to day. While this insurance isn’t generally required by state or federal law, that doesn’t mean it’s not a valuable investment. In fact, you may be risking a lot by not having such coverage when you need it.
What Does General Liability Insurance Cover?
General liability insurance covers three main areas:
Bodily injury under general liability insurance covers injuries a visitor may sustain on your business’ property. This insurance can help cover the victim’s medical bills and protect your business against a lawsuit regarding the injury.
Property damage under general liability insurance covers damages someone may sustain to their personal property due to an accident on your business’ premises. It can help pay compensation for the damages and protect your business against a lawsuit
Personal and advertising injury covers claims against the business regarding libel, slander, copyright infringement, malicious persecution and more.
Who Needs General Liability Insurance?
Every industry faces common dangers when it comes to injuries and damages on their property. Whether you own a commercial property or work out of your home, general liability insurance can protect your assets.
In some cases, you are required to carry general liability insurance by a lender or landlord. If you take out a loan for your business or rent a space for your operations, you may be required to carry general liability insurance. This is to protect those who have financial stake in your company from possible monetary loss or lawsuits in case an accident occurs during your operations.
General liability insurance may also be required to apply for and obtain certain professional licenses. If you plan on offering any specialized or professional services, you will likely need general liability insurance.
Many small business owners choose to combine their general liability insurance with commercial property insurance into a single business owner’s policy. Business owner’s policies are geared for small businesses and can combine important coverages to save you money on business insurance.
Is General Liability Insurance Expensive?
On its own, general liability insurance is relatively inexpensive. Rates will depend on a variety of factors, such as your location, the size of your business, industry, coverage limits, deductible and more. Your general liability limits may be different than another business depending on your specific coverage needs.
Ask your insurance agent today about saving money on your general liability insurance policy.