Running your own business means putting in more than the standard eight hours of work a day. With it comes responsibilities, whether you have one or hundreds of employees. Their safety and well-being at work are probably your main priorities.
Having the right insurance plan in place is the perfect solution to this issue. General Liability Insurance for businesses as one of your top choices.
Read on to discover the perfect insurance fit for your business.
- What is General Liability coverage for?
With General Liability insurance you will be covered in case of property damage, medical costs due to bodily injury, and electronic data liability. Slander and libel are generally covered by this policy as well, and you can use your insurance protection to pay for settlements and legal fees if your business is sued. You will also be covered in situations where you have to make payments for damages to a third party’s property, advertising injuries, administration fees, court costs and attorney’s fees. In short, General Liability Insurance covers third-party bodily harm, property damage, personal injury, and advertising/marketing damages.
Depending on what type of business you operate, this may be more or less important according to your risk factors. If your company is in the construction business, then it’s clear that a solid insurance policy is crucial. Protecting your employees from injuries is a top priority, and this type of insurance covers that.
When it comes to property damage and advertising related issues, it’s reassuring to know that an unintentional mistake is covered by your insurance policy.
- What isn’t protected by General Liability Insurance?
This type of policy will not cover unlawful acts, biased hiring, incorrect investment decisions, or gross negligence. Unprofessional services and intentional damage by your workers as well as financial losses caused by criminal prosecution will also not be covered
But a simple add on with an additional insurance plan can easily cover all of the above. Your insurance company will in all likelihood offer you the option to add on to your existing General Liability Insurance.
- Are you required by law to have General Liability insurance?
Not every business requires this sort of liability coverage. As previously mentioned, if your company operates in the construction industry you are often obligated by law to have this type of insurance in place. Although the law does differ from state to state and even the city your company operates in.
For example, in California, all contractors are obliged to have General Liability Insurance, except handymen. In Illinois, however, the state doesn’t ask for this kind of insurance at all.
- What is enough coverage?
Even though the amount can vary, the optimal number is anywhere upwards of $1 million. This insurance plan will cover any incident of up to $1,000,000. During the policy period, the amount will be $2,000,000 in total. It must be noted that every business faces different risks, which means you may need to have coverage for a bigger amount. Your insurance company will assist you to find the optimum amount of coverage for your business.
- Who benefits most from General Liability coverage?
General Liability covers the business owner, its employees, and subcontractors from any third-party claims. Anyone who is employed by your company will be covered from any third-party claims.
Note: General Liability policy does not cover employee injuries; there is a separate policy that will cover for this type of work-related incidents and that is the Workers’ Compensation insurance.