General Liability Insurance

If you don’t know what it’s like to have someone slip and fall at your business or haven’t gone through the trauma of a burglary, chances are general liability insurance may not be on the top of your list.

But the chances of small business owners experiencing a property or general liability claim is high. And having insurance to cover this means your small business is covered from the high costs of lawsuits, and the damages won’t have to come out of your pocket.

So not only can general liability insurance help you cover costs if you’re held responsible for an injury on your property, and your defense costs if you’re accused of slander, but there are some other benefits too. Having this kind of insurance gives your clients peace of mind that you will take responsibility for your mistakes. It can give you a competitive edge over other businesses in your field. 

This post looks at what general liability insurance is, what it covers, what determines the cost of your insurance, and the difference between general and professional liability insurance. 

What does general liability insurance cover?

First off, it provides coverage for claims from third parties, so people outside of your business will cover legal defense costs, which will cover everything from hiring a lawyer to court-ordered judgments and settlements. So if you’re sued over a bodily injury, property damage, or advertising injury, you’re covered. 

Small businesses that work directly with clients and customers will benefit from general liability insurance. This insurance policy can keep your company financially stable if a customer or competitor sues you.

It is vital to have general liability insurance cover for your business if you answer yes to any of these questions: 

  • Is your company a location that is open to the public?
  • Do you work closely with customers and clients?
  • Do you handle client property?
  • Do you rent or own commercial property?

How will it help?

It will help you cover the costs and claims for:

  • The medical expenses of a customer or client in the case of a slip and fall at your business or any bodily injury or property damage that your company causes
  • The costs to repair a wall that your employee accidentally damaged while working at a customer’s home
  • The legal costs to defend your business in a lawsuit and the judgments and settlements from a customer or client’s lawsuit
  • If your company causes reputational harm. This can result from malicious prosecution, slander, libel, wrongful eviction, violating a person’s privacy, and more
  • Copyright right infringement from your business’ advertisements
  • Damage to rented property caused by a covered loss such as fire, lightning, or explosion

What determines general liability insurance cost?

There are several factors that will determine the cost of your general liability insurance. The top one is the type of business you operate. If your company is in a higher-risk industry like construction companies, you’ll pay a higher premium. If you’re running a consulting firm, you’re likely to have lower costs for your insurances. 

Other circumstances that will affect costing include:

  • Years of experience
  • Location
  • Size
  • Building condition
  • Policy details, like coverage limits and deductibles
  • Insurance claims history

Do independent contractors need general liability insurance?

Since independent contractors themselves can be sued and held liable for customer injuries, property damage, and advertising injuries, yes, they too need general liability insurance.

If this is not something an independent contractor is interested in acquiring, there is the chance they could ask their clients to add them to their general liability insurance policies. This can be done as an additional insured and will cover the contractor for as long as they work for their client. 

What is the difference between general and professional liability insurance?

  • General liability: This comprises customer injuries, customer property damage, and advertising injuries.
  • Professional liability: This covers disagreements over the quality of professional services.

So what this means is that most businesses will need general liability insurance regardless of what field they are operating in, as it will help protect you from costly liability claims that come up during standard business practices. For example, representing a client, working on a third party’s property, and even advertising your business. 

But companies providing professional services will need an extra layer of protection from professional mistakes and disgruntled clients. You’ll find lawyers, medical professionals, accounts, and insurance agents take professional liability coverage seriously. 

How i4SB Can Help You

We know what it’s like to run a small business: it’s time-consuming and energy-draining at the best of times, and so we like to help our clients take some of that load off by “match-making” them with the right insurance company. All our insurance professionals come with years of experience, giving you peace of mind and freeing you up to focus on running your business.

Our process begins with a simple online questionnaire that we have designed to discover all the insurance needs of your business. We then consider factors such as the state your company operates in, the type of business, coverage amounts, reasonable pricing, etc. Based on specific needs, we contact the insurance expert best suited to your particular kind of business. And a partnership is made. 

You can reach out to i4SB via our contact form online or with customer service at 1-505-880-2143. There’s absolutely no obligation to buy any of the products that the insurance companies we match you with are offering – it’s often just helpful to hear what they have to say once you’ve explained your business needs to them. 
Simply push the Get Started Now button below and let i4SB help you on your way to cyber insurance that suits your pocket and gives you peace of mind.