As a small business owner, you know that you need to take every precaution to protect yourself and your business. That includes having general liability insurance in place. General liability insurance is designed to protect businesses from personal injury or property damage caused by their employees, customers, or contractors. In the event of an accident, having this coverage will help cover the costs of damages.
What is General Liability Insurance?
General liability insurance is a type of insurance that covers businesses from lawsuits and other legal proceedings caused by the actions of their employees or customers. The policy typically covers any losses that may be incurred as a result of someone’s lawsuit, regardless of who was at fault. This type of insurance is important for small businesses because they can’t afford to be financially liable for damage done by their employees or customers.
Types of Coverage
The best type of general liability insurance for small businesses is business owner coverage. This type of policy will protect the business owner from financial losses if someone is injured while working on or using the business’ property, or if someone makes a false claim against the business. Business owner coverage also includes protection for third-party claims, such as injuries sustained by customers or coworkers.
Another important type of general liability insurance for small businesses is worker’s compensation insurance. This type of policy will cover employees who are injured on the job and paid by their employer. Worker’s compensation policies can be expensive, so it’s important to compare rates before purchasing one.
It’s also important to have property damage liability insurance for small businesses. This type of policy will cover damages that occur due to accidents on property owned by the business, including parking lots and sidewalks. Property damage liability premiums can be expensive, so it’s important to shop around and find a policy that fits your needs.
How Much Should a Business Invest in General Liability Insurance?
Small businesses need to be mindful of the importance of general liability insurance. This type of insurance will protect your business from potential legal issues that may arise from accidents or injuries caused by someone else. A policy with general liability coverage can be expensive, but it is important to consider the cost when making a decision.
In order to calculate an accurate estimate, you will need to know:
-The dollar amount of potential claims that your business is likely to experience
-The amount of deductible you are willing to allow for each claim
-Your company’s history of lawsuits
Once you have this information, you can use an online calculator or insurance quote tool to generate a rough price range for general liability coverage. It is always a good idea to consult with a professional before making any large financial decisions, however.
When To Seek Coverage
Small businesses should protect themselves by getting general liability insurance. This type of insurance provides protection from lawsuits that may arise from injuries or damage suffered by people or property on the business’ premises. A policy typically covers events such as slips and falls, vehicle accidents, and product recalls.
General liability insurance is important for any business, but it is even more important for small businesses, which are often not as well-funded as larger businesses. A small business owner may not be able to afford a large policy, or may not be able to find an insurer that will cover the business adequately. A small business owner who is hit with a lawsuit can face expensive damages and lost revenue.
A policy of general liability insurance can cost as little as $200 per year, so it is worth checking into whether your business needs this coverage. The Small Business Administration (SBA) can also provide advice on how to get started with general liability insurance.
Conclusion
It goes without saying that any business, no matter how small, must take steps to protect itself from potential lawsuits. However, many businesses forget about one of the most important forms of insurance: general liability insurance. General liability insurance protects a business from damages incurred by third parties (including customers and employees). In other words, it covers the cost of paying for your legal fees if you are sued. While not every lawsuit will result in a financial burden, having this coverage can minimize the risk significantly. Make sure to talk to an agent at an independent insurance company about what types of policies might be best for your business.
