What you need to know about General Liability Insurance
General liability insurance is one of the most important types of business insurance you can have. It protects your business from third-party liability claims related to bodily injury, property damage, and even advertising mistakes.
General liability insurance covers a variety of potential risks, such as slander and libel, false advertising, wrongful discharge, discrimination and other actions by employees. Any business that offers services to the public or third parties should have this type of coverage, but it will be especially useful for businesses who deal with the public.
There are two main reasons why you would invest in general liability insurance: To protect your business and its assets against liabilities that may arise from operations; and to protect yourself from a lawsuit in the event something goes wrong.
Let’s take a look at some common examples of when getting general liability insurance is essential for your business’ success:
Protect Your Assets from Liability Claims
Your general liability insurance will protect your business from the cost of defending lawsuits. This can be extremely costly, not only in terms of legal expenses but also in terms of lost revenue and reputation.
If you are sued and you don’t have insurance, you will have to pay for all the fees and penalties associated with the lawsuit out of your own pocket. That could include paying for your legal representation, paying any fines imposed by the court, paying damages to the plaintiffs, and reimbursing your employees for the work they missed while attending court.
If you have general liability insurance, your insurance policy will cover these costs, protecting your financial assets.
Protect Yourself from Lawsuits
You may be liable for damages if someone is injured on your premises or if the products or services you sell cause damage to the property or person. If a customer is injured or the property of a customer is damaged, they may decide to file a lawsuit against you.
With general liability insurance, any costs and damages that result from these types of incidents are covered. This type of insurance provides protection if you are sued by customers, vendors, or employees. Your insurance company will defend you against the lawsuit and pay any costs associated with the claim, including damages awarded by the court. If there is a settlement, your insurance company will cover the costs associated with the settlement.
Protect your business from employee lawsuits
Your employees could decide to file a lawsuit against you for a variety of reasons. They may be dissatisfied with their working conditions, or they may be injured on the job. They may become sick from exposure to toxins in the workplace, or they may become sick from consuming food or beverages in the workplace that has been contaminated.
If an employee is injured at work and decides to file a lawsuit against you, your general liability insurance will protect you from the costs associated with that claim. Your insurance will also protect you from any damages awarded by the court.
Confirm your business is complying with law
Businesses are required to have certain types of insurance coverage. Your state’s department of insurance can tell you what types of coverage you need and which type of insurance company you should purchase your policy through.
Your insurance company will determine the level of coverage you need. This coverage level will depend on the type of business you have, the number of employees you have, and the level of risk associated with your business.
It’s all about protecting your business financial assets
General liability insurance will protect you from the financial impact of lawsuits and claims related to the products or services you sell, the premises where you do business, and the actions of your employees.
General liability insurance will protect your assets, your employees, and your business. It is an essential business insurance policy for any company that sells services or products to the public.
