Business Insurance: 5 Benefits of General Liability Coverage

75 percent of all businesses in the United States are underinsured.

It’s a shocking statistic, given the potential devastation the unexpected can have for ill-prepared companies. 40 percent of U.S. business businesses hit by a disaster never reopen.

As the owner of a small business, one of your biggest responsibilities is to protect your enterprise from hazards and potential catastrophes.

One way to do so is by ensuring you have business insurance. In particular, you need general liability business insurance.

But what exactly is general liability commercial insurance? What and who does it cover? Why should you get it?

These are some issues we highlight in today’s comprehensive post. Read on to learn more.

What is General Liability Business Insurance?

General liability insurance refers to an insurance policy that provides liability coverage for general business risks.

It’s one of the different types of insurance that a company needs for protection against potential business risks.

What Does General Liability Commercial Insurance Cover?

General liability insurance for small business enterprises covers a wide variety of issues. These include:

Bodily Injury

When a third party suffers bodily harm as a result of your business activities, they may file a claim against you. Your general liability coverage can help take care of that.

Property Damage

You or your workers might accidentally damage the property of a third party during your business activities. These damages are included in your general liability coverage.

Personal and Advertising Injury

Sometimes, a company’s advertising efforts lead to the financial loss of a third party. This type of harm is considered a personal and advertising injury.

You are liable for this type of injury if you are found to have committed libel, slander, invasion of privacy, or copyright infringement.

Your general liability policy can help cover the costs associated with this injury.

Medical Payments

When a third party at your business location suffers injuries, you may have to pay for their treatment.

The same applies when third parties suffer injuries at other locations where your workers are involved in business activities. Your general liability policy can take care of these issues.

Defense Costs

When facing a lawsuit, one of the biggest expenses you can face is paying for your legal defense. Your general liability coverage can assign and pay for your legal counsel.

Who is Covered?

General liability insurance covers your business and your employees against claims when your business operations cause damages of injury.

This insurance can also cover manufacturers and wholesalers if the products they deal with have the potential to hurt third parties.

General liability insurance also provides coverage for vendors who sell your products in case they face potential lawsuits related to the products.

Benefits of General Liability Insurance

Now that we’ve seen what general liability insurance is and what it covers, it’s time to look at some of the top reasons to invest in the policy. Here are five top benefits of general liability coverage.

1. It Demonstrates Responsibility

When you get small business insurance, you’re communicating to your clients you’re ready to assume responsibility in case liable for accidents that occur in your business locations.

It shows that besides doing your best to protect your company, you have your clients’ best interests in mind.

2. It Shows You’re Established

Having commercial general liability business coverage demonstrates that you’re serious about protecting your livelihood for the long-term.

It tells your prospects, customers, and other stakeholders that you don’t want to risk claims that might threaten the future of your business.

As a result, you reinforce that trust that your clients have in you. If clients trust you and love your products or services, they’re most likely to give you repeat business and refer others to you.

3. It Could Increase Client Contracts

Many clients insist on working with businesses that have general liability insurance. Why? Because no client wants to be liable for your mistakes.

Not having this type of policy could also make clients think you want to avoid claims. On the other hand, having general liability coverage can significantly boost trust and lead to new and bigger business opportunities.

4. It Keeps You Afloat During Troubling Times

While no one wants to imagine that something bad will happen to your business, sometimes the unexpected happens.

In case of a disaster, your general liability insurance can help cover the cost of repair and replacement.

The policy helps make sure that your normal operations don’t stall in the event of these theft, damage, or fire incidents.

5. It May Protect Your Company Against Cybercrime

Cybercrime is a very real threat today, affecting millions of businesses every year.

A single cybercrime incident can devastate your business, both financially and in terms of your reputation. That’s why you need to stay prepared for cyberattacks at all times.

One way to do so is to have the right coverage against cybercrime.

A general liability insurance policy with data breach coverage can help you get your business on track quickly in case you become the victim of cybercrime.

The policy pays for legal costs, remediation expenses, and other costs associated with data breaches.

Tips for Buying General Liability Business Insurance

So, how do you go about purchasing the right general liability insurance coverage?

The first thing you need to do is to identify your risks. Thoroughly analyze your operations and identify all potential risks so you can cover the appropriate coverage.

Be sure to choose a competent, independent insurance agency to guide you through the process of choosing and applying for the ideal policy for you.

Don’t forget to compare offers from several business insurance companies, so you get the best deal for you. Your insurance agent should be able to suggest the best insurance providers for you.

Protect Your Business by Getting the Right Insurance Coverage

Every small business needs to prepare for potential crises. No one knows when disaster will strike.

By having general liability business insurance, you can get your business back on track in case of anything.

Are you interested in getting general liability coverage for your business? Please contact us today.