What Is General Liability Insurance For Small Business

General liability insurance covers businesses against claims related to personal or physical injuries, liability related to advertisements and products, and property damage. Business liability insurance protects the assets of the company and pays legal liabilities, such as medical costs incurred by a customer injured on store premises, and any workplace injuries suffered by employees.

General liability insurance covers the costs of litigation and settlements should someone accuse your company of causing property damage, personal injuries, or harming someone’s reputation. General liability insurance protects your personal and business assets if anyone other than your business is injured or has property damaged due to your business, operations, or products.

Just as liability insurance in an automobile policy protects you against having to pay out-of-pocket for damages or injuries if you are the one who causes the accident, general liability coverage covers the costs of damages or injuries caused by your business.

General liability insurance does not cover work-related auto accidents, injuries, and illnesses to employees, damages to your business property, errors in professional services, claims to exceed the limits on your policy, or unlawful acts done by yourself or your employees intentionally.

For commercial car accidents, you will need a business motor vehicle insurance policy if you own a vehicle and are using the vehicle for business. You may not need commercial auto insurance if, say, your company does not own or operate a car.

For instance, you may not own any commercial buildings that need property insurance, nor do you have to pay for payroll or other operational expenses. Most small businesses do need such coverage, particularly if you lease or own an office or commercial space.

Commercial Property Insurance covers the offices or buildings that a business leases or owns, and the business equipment. Itas any policy or insurance product that a small business owner purchases to protect against a lawsuit.

General liability insurance policies usually also include some product liability coverage, which protects from claims that the products your company makes, ships, or sells have caused injury or damage to people or property. A general liability policy also generally will cover product and advertising liability, which refers to problems that can arise in your business if the products you manufacture or sell are defective, harm someone, or are not advertised properly.

General liability coverage kicks in when a customer reports an accident–called filing a lawsuit–against the business, and the business is found to have been liable for what happened. A Limited Liability Company (LLC) must also protect the assets of the business, such as equipment, inventory, and even the money that is due to customers.

Professional liability insurance, also called error-and-omissions coverage, can protect a company performing services–think accountants, lawyers, doctors, and architects–if it is issued by a client who believes it was negligent or made an error that caused damage. If you damage someone’s property or hurt someone, and they sue you, a good general liability business insurance policy should cover most or all the legal fees, damages, and other costs that you will have to pay to defend yourself.

Businesses that are generally at higher risk than they would be covered by conventional liability coverage may want to increase the limits of coverage through reinsurance, or umbrella insurance, for excessive losses. Businesses in a lower-risk category might consider a Business Owners Policy (BOP), which combines general liability and property coverage for a more affordable rate.

Huntington Insurance has experience working with a variety of businesses, and they can give your business invaluable insights about potential liability risks that you are facing. Helpful life insurance agents that can help with policy servicing are a call away.

With a few clicks, you can search for your GEICO insurance agency partners that you have your general liability policy with, and find your policy service options, and contact information. Coverage is frequently required because it shows that you will have the financial protection necessary to cover costs related to property damage or injuries related to your commercial property.

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