When you don't have the capital to absorb this general business liability you are always just a day away from bankruptcy. That's why every business should have general liability insurance. Here is what general liability insurance covers and why it is absolutely essential to have it.
What Does General Liability Insurance Cover?
Items covered by general liability insurance include:
- Property Damage: Damage to physical property that occurs because of your business operations.
- Medical Payments: This covers injuries that occur at your workplace or due to your business operations. Maybe a customer slips and falls and needs physical therapy. Medical payments for injuries requiring long-term care quickly add up.
- Advertising: Advertising is a necessity, but it isn't without its risks. This covers claims of copyright infringement that arise out of advertisements. Keep in mind that the claim need not be legitimate to cost you money. Plenty of spurious claims go to court and drag on for months.
Those are just a few of the types of claims that fall under general business liability. The specifics will depend on what type of plan you choose and can be tailored to meet your needs.
General Liability Vs. Other Types Of Liability
You may be wondering if you really need general liability insurance if you already have personal or professional liability insurance. The answer here is a resounding yes. Neither personal or professional liability insurance will protect you from everything. Even together they have gaps in coverage. Personal liability insurance doesn't protect you from anything that occurs due to your business operations. Professional insurance doesn't protect you from lawsuits arising due to physical injury or property damage.
Should You Really Be Worried About General Business Liability?
You've made it this far haven't you? You run an honest business. You keep your place of work clean and safe. Your employees are well trained and fully equipped to handle their duties. So what is there to worry about? The truth is that you can never predict when you will need general liability insurance, or any kind of insurance. You could run a shoddy business for years and never need it or keep a tight ship and get hit with a lawsuit before you even get off the ground.
The cost of general liability insurance is a small price to pay for the peace of mind you get, knowing that your hard work can't be erased by mere bad luck. You have to deal with liability every day when you own a business, and there's no way to completely eliminate risk, but at least you can minimize your general business liability with a good insurance plan.
General liability insurance is a vital part of any liability and risk management plan. At Summerlin-Roberts we will work with you to find a general liability policy that protects your business from day-to-day operational risks. Please, contact us today to find out more about our liability and risk management programs.