When shopping for general liability insurance, it's well worth it to do your research before selecting a policy. After all, general liability insurance will be serving as your company's safety net in the event that legal hassles arise or the unexpected occurs.
Here are 4 key considerations to take into account before selecting a general liability insurance policy:
1. Which areas of coverage are necessary for your business's unique needs?
Certainly not all general liability insurance policies are created equally. You'll find that some policies cover more areas of legal liabilities than others. Here are some examples of what your general liability insurance policy could cover:
- Physical damage (actual or alleged)
- Property damage
- Injuries that happen on your company's premises as a result of your products
- Medical payments
- Slander, libel, and copyright infringement
- Damage due to fire
- Legal fees (including court fees and settlement fees)
A licensed insurance agent can help you to determine the best coverage for you business based on your company's individual needs.
2. Who needs to be covered under the general liability insurance policy?
Typically, the type of business that you operate will determine who needs to be covered under a general liability insurance policy. For example, if you are a sole proprietor, you and your spouse could be covered. On the other land, if you operate a corporation, you, the other owners, shareholders, officers, and directors could be covered.
3. What should the limit of your general liability insurance policy be?
You want to make sure that your policy limit will be high enough to cover the costs of a lawsuit and other key risks that your business faces. This is an area that you'll especially want to seek the advice of an experienced insurance professional to help ensure that you're adequately protected.
4. Do you use subcontractors?
Depending on the type of general liability insurance policy that you're considering, you may learn that subcontractors are not covered under the policy. This can expose your business to serious risk. If you use subcontractors, talk to your insurance agent about the regulations for general liability insurance in your state to make sure that your business is protected.
Naturally, there are a number of questions that come up when searching for a general liability insurance policy, and our experienced team at Summerlin-Roberts is available to help you every step of the way. Please contact us to learn more about general liability insurance and other factors that you should be taking into account when selecting a policy.