Your Guide To General Liability Insurance

When it comes to protecting your business, having the right insurance is a huge part of that. One type of coverage you may want to consider is general liability insurance, which provides financial protection if your business is sued for damages.

If you're considering this form of coverage, here are some guiding questions to help you learn more about what this policy covers and why it's important.

What Does General Liability Insurance Cover?

General liability insurance offers financial protection in case your business is sued for bodily injury or property damage caused by its products or services. For instance, if a customer is injured while using one of your products, this coverage can help pay for the medical expenses.

Likewise, if a customer's property is damaged due to a product or service you offer, this coverage can help you cover the cost of repairing the property.

General liability insurance also covers various types of liabilities, such as libel and slander. These are instances where someone says something false or damaging about your business, and you are being sued as a result.

In addition, it can even cover copyright infringement if you use another party's intellectual property without their permission. But this is a much more limited type of coverage, so it's important to understand the details before assuming you are covered.

Additionally, this policy can cover medical expenses associated with any injuries sustained on your business property or by your employees while working off-site. In some cases, general liability insurance may also include advertising injury coverage.

How Much Does General Liability Insurance Cost?

The cost of a general liability policy will depend on several factors, including the size and type of business you operate and the number of employees you have. These costs can typically range from a few hundred dollars to several thousand dollars per year, depending on the specifics of your operations and risk profile.

The risk profile refers to the potential of an event occurring that would require you to make a claim on your insurance policy. Some businesses have a higher risk profile than others, and their policies will typically cost more. It's important to speak with an experienced insurance agent to better understand your specific risks and how much coverage you need.

Does Every Business Need General Liability Insurance?

Yes. Even if your business doesn't offer physical products or services that could potentially cause property damage or bodily harm — such as consulting firms — it's still recommended that you carry general liability insurance to protect yourself from claims related to advertising injury and other potential liabilities.

This form of coverage can provide peace of mind knowing that no matter what happens in the course of doing business, you are covered in case something goes wrong. For more information on general liability insurance, contact a professional near you.