In today’s world, even minor mishaps can turn out to stimulate massive lawsuits that can cripple your business financially. For this reason, it is essential that businesses are covered bycommercial general liability insurance. Commercial general liability insurance will protect your small business against lawsuits related to personal injury or property damage. Investing in general liability insurance means that you will be covered for damages from the lawsuit and also for the legal costs associated with the incident. The expensive nature of such lawsuits means that without general liability insurance, you are taking a big risk by potentially facing a situation that could draw large amounts of money out of your business operation. Are you willing to take that huge risk, knowing that your entire business could be at stake? If not, read on to learn about commercial general liability insurance and how it can protect your business.
How Much Coverage Does It Provide?
Commercial general liability insurance covers your small business from any liability or financial loss that is a result of personal injury, advertising injury, or property damage. One of the most beneficial, yet overlooked, aspects of general liability insurance is that it will cover the legal costs associated with settling or defending claims, even if those claims are not legitimate. An example of this would be a claim that your business is liable for a customer who injures themselves on-site. Even if this person committed insurance fraud and did not actually injure themselves, the costs of legal defense are covered under general business liability insurance. On the other hand, if the person did in fact injure themselves and your business was actually liable for this injury, you will still be covered for the damages. Similarly, if your business is found liable or negligent for damage to someone else’s property or reputation, you will also be covered by your commercial general liability policy.
How Does The Policy Work?
A general liability insurance policy will outline the maximum cost that the insurance company will cover, and any costs beyond that limit will be the responsibility of the business to pay. This is where the importance of umbrella insurance comes into play. Umbrella insurance, as its name states, serves as a protective layer that will cover gaps in the general liability policy under it. For this reason, it is important to think about umbrella insurance policies to ensure protection when exceeding the maximum limit on your commercial general liability coverage. When general liability insurance is purchased in conjunction with other individual policies, it is combined to form a business owner’s policy.
Whether you feel that your business is prone to a high amount of risk or not, the reality is that every business faces the risk of lawsuits arising from personal and property damages. If your business is found to be liable for these damages, and you have failed to protect it with general liability coverage, you will face a serious financial burden. Do not take this potentially disastrous risk; invest in commercial general liability insurance immediately.