Running a business is an exciting venture with many risks and uncertainties. Business insurance is one of the best tools to shield firms from these hazards.
Learn more about the different types of business insurance to ensure you have a strong foundation for your enterprise. From protecting your business from financial ruin to safeguarding your products, these valuable insights will help you fortify your entrepreneurial kingdom against legal threats.
What is Business Liability Insurance?
When someone accuses your company of causing property damage or bodily injury, business liability insurance or commercial general liability helps pay for legal defense expenses and damages. It’s one of the most common and affordable small business insurance policies.
For example, if a customer trips over a rug at your business and breaks an arm, you could be sued for medical expenses and lost income. Liability insurance helps pay for legal fees and judgments rendered against your business up to the policy maximum, usually expressed as an overall amount or a sum for each event.
Some businesses need specialty coverages to comply with industry regulations, such as real estate agents needing professional liability insurance and lawyers needing malpractice insurance. Some insurers bundle general liability insurance with other coverage in a business owner policy (BOP). Getting quotes from multiple providers and comparing features like customization, cost, customer service, and satisfaction is recommended. Many businesses can buy liability insurance online.
What is General Liability Insurance?
Business insurance protects your firm against liability for accidents, including customers tripping and falling, or more severe claims, such as being accused of libel or slander. It also includes coverage from your company for injuries and property damage. It is a fundamental part of any small business, and some clients may require you to have this coverage before they work with you.
It also covers third-party property damage, such as breaking a client’s windows while working at home. It protects your business from the financial impact of these incidents, which could otherwise put you out of operation.
General business insurance is available as a stand-alone or combined with other policies, like business interruption and commercial property insurance. A certified insurance broker can assist you in selecting the best insurance for your company and provide more affordable packages than purchasing individual policies.
How Much Does General Liability Insurance Cost?
The cost of general business liability insurance depends on the size of your operation, risk exposure, deductible, and policy limits. Most small businesses opt for a standard $1 million per occurrence/$ 2 million aggregate policy limit to protect against third-party financial loss.
Your industry and location may also influence your coverage costs, as some sectors have greater inherent risk (for example, a restaurant has more exposure to customer injuries than a consultant). Your annual revenue and claims history will also affect your business insurance rates.
An average general liability insurance policy costs less than $50 per month for most businesses. Refraining from facing judgments, legal settlements, and lawyer fees without a general liability policy can financially devastate your business. In addition, many clients will refuse to work with your business if you don’t have a general liability policy. That makes it a must-have for most small businesses. You can purchase this type of business insurance online and get started right away.
What Additional Shields Can I Add to General Liability Insurance?
General liability insurance offers broad protection against some of the most fundamental risks businesses face. Depending on the policy you select, it can shield you from claims related to third-party bodily injury and property damage, personal and advertising injuries, products-completed operations, and more.
Several other policies can be added to or bundled with business liability insurance. For example, a commercial property policy protects your business against property loss, such as when a burglar shatters your storefront window. Errors and omissions coverage, on the other hand, shields your company from liability when a client sues over a missed deadline or work error.
You can also add insured status to your business, a feature offering the party you’ve added the same protections you enjoy under your insurance policy.