When looking into insurance for your business, one coverage you will often see is general liability. Now, what makes it general liability is the vast amount of items it covers in the policy, which we will cover a bit later. To emphasize why general liability policies are recommended for businesses, both big and small, the average cost of a slip and fall claim is around $20,000! Not to mention the cost of a reputational harm lawsuit! That can cost you around $50,000 and without any general liability on your side, and that’s all cash out of pocket. Let’s review what exactly general liability covers, doesn’t cover, and who really needs it.
Who Actually Needs General Liability?
Every business owner – yes, really! As we briefly mentioned above, lawsuits and injury claims cause cost your business a pretty penny if they are served in your place of business. Now, many states don’t actually require that you carry general liability insurance, but it is always highly recommended that you have it because if you don’t, you expose your business to financial risks. If you are looking to collaborate with other businesses, they may reject the opportunity if you do not have the minimum coverage under your belt. Those who need general liability meet these criteria, among others:
- Have a store, office or building that’s open to the public, clients or vendors
- Handle or work near client property
- Advertise or create marketing materials for your business
- Use social media personally or professionally
What Does It Cover?
It’s commonplace to see liability claims during a business’ operations. As we talked about earlier, these claims can be a costly expense for your business, especially if you own a small business. Below we’ve compiled a list of coverages that are typically included in general liability.
- Bodily Injury (Employee or Customer)
- Property Damage
- Advertising Injury
- Copyright Infringement
- Reputational Harm (Slander)
What Isn’t Covered
There are a few scenarios in which your general liability will not cover you. In these instances, you will need to purchase additional liability insurance policies for more specific situations. There are multiple other policies that you may consider adding to your current coverage:
- Professional Liability
- Worker’s Compensation
- Product Liability
- Umbrella Insurance
- Errors and Omissions
Are you in need of adding liability insurance to your list of coverages? If so, reach out to your local insurance agent to get started on protecting yourself from all the potential liabilities out there.