General liability is a type of insurance that covers accidental injuries to your business and property damage caused to others. It is also called “business liability insurance” or “commercial general liability insurance.”
It is a type of small business insurance covering advertising injury, copyright infringement, and reputational harm.
These claims result from a company’s products, services, or operations. With reliable general liability insurance, you don’t have to pay out of your business’s income.
Here, we will discuss various aspects of general liability insurance. Scroll down to read more.
Why does the law require general liability insurance?
For example, a technology-based company will not be required to keep a general liability insurance policy. However, many professionals, such as general contractors, need general liability insurance that can offer them good coverage.
As per all the state laws, there are different types of insurance for small business owners. But, according to the requirements, you need workers’ compensation insurance after hiring the first employee. In the case of a vehicle, you need commercial auto insurance after buying the first vehicle for the business. However, every state has their laws for liability insurance, as it may vary.
What is covered under General Liability Insurance?
Multiple possible claims are covered under general liability insurance, such as bodily injury, property damage, copyright infringement, reputational harm and advertising injury.
- Bodily Injury – It is a common claim caused by the business. Suppose someone visits your business place and gets injured. These injuries are covered by general liability insurance, including their medical costs.
- Copyright infringement – This claim is about using someone else’s work for yourself or in your business ad or other business marketing without the consent of the original party.
- Advertising injury – This might happen to defame your case by another person, business owner or company.
- Property damages – In this insurance, your company is legally responsible for other people’s property damage. The claims include damage to a client’s home or other property if they visit them on business.
- Reputational harm – This might happen while interviewing by a news outlet, and you comment something negative about other companies that might hurt their business.
Who needs General Liability Insurance?
There are certain criteria for people who should get General Liability Insurance, that is given below-
- Temporary employees in the firm.
- Using social media personally and professionally.
- Requirement of insurance coverage in order to be considered for work contracts.
- You require third-party locations for business purposes.
- If the business is open to the public and clients or vendors.
- You are advertising or creating marketing materials for your business.
What are the benefits provided by General Liability Insurance?
There are many benefits that businesses get from buying a General Liability Insurance, such as
- Artisan contractors
- IT contractors
- Small Business Owners
- Janitorial services
- Consultant
- Real Estate Agents
- Landscaping companies
How much does General Liability Insurance cost?
The costs of General liability insurance are very reasonable. It only costs you $42 per month. However, this cost may vary as per the coverage based on the size of the business, its coverage, your industry, your location, and the amount of coverage.
The general liability costs are manageable by choosing the insurance limit that matches your requirements. The business owner’s policy is reliable and cost-effective for combining general liability insurance and business property insurance.
How much exactly you have to pay for general liability insurance is based on the following factors:-
- Insurance claims history for your business
- Business experience in years
- The location, size and condition of the business place
- Type of your business.
- In the case of high-risk industries, you might have to pay more for general liability insurance.
- Policy details, like deductibles and coverage limits.
How do you get the best General Liability Insurance?
Before finalizing your general liability insurance, collect all the required documents you will need while applying for insurance:-
- General Contact information
- Estimated business revenue for the upcoming years.
- The age of business
- Number of employees and payroll.
- Various business details like location (either business building is on rent or personally owned)
- Details of what your company does.
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Conclusion
Small, mid-sized, or established businesses should get this insurance. It reassures you about your business by offering coverage for many common lawsuits. Clients get assured of their business finances.
Good general liability insurance will not only reassure but also help you in compensation for the damages to their property or any injury to someone at your business property.
