If you own a business, you absolutely can't afford to not have general liability insurance.
For a quick refresher, general liability insurance covers your business from third-party lawsuits that occur due to bodily injuries or property damage. The referenced "third-party" could be anyone other than one of your employees (customer, business partner, etc).
A great example of when general liability insurance could come in handy would be if a customer slipped on a freshly mopped floor in your store and sustained a bodily injury. If that customer chooses to pursue a lawsuit against your business, you'll want general liability insurance in place to cover the litigation and medical costs. Otherwise, such a lawsuit could put you out of business.
What is covered by general liability insurance?
In addition to covering the immediate cost of medical expenses for the injured party or the cost of replacing or repairing damaged property, general liability insurance covers the cost of investigating and defending third-party lawsuits. This means attorney's fees, settlements, court costs, witness fees, and court-ordered judgements are covered.
What additional coverage could your general liability insurance offer?
Depending on the general liability insurance policy that you have in place, it could also cover some degree of product liability insurance. This would kick in if a customer said that your product or service caused him or her harm.
Some general liability insurance policies will offer coverage for personal and advertising injury. The could refer to coverage for copyright or brand infringement, slanderous material, and malicious prosecution.
In some cases, general liability insurance policies will offer contract liability coverage. This can cover you if a customer claims that you breached your contract and sues for damages.
Do you need general liability insurance if you already have professional liability insurance?
While the two are often confused for being the same, professional liability coverage will not protect your business if someone files a lawsuit against your business due to physical injury or property damage. Therefore, you absolutely need to have a general liability insurance policy in place as well.
As a small business owner, you can't anticipate when a customer is going to break an ankle on your premises or when an employee will drop and break customer property. However, these things do happen, which is why general liability insurance is considered to be a cornerstone policy for most business protection plans.
If you have additional questions about general liability insurance, please contact us at Summerlin-Roberts. We can help you to determine the best policy for your business's unique needs.