When you’re a small business owner, you may have a fear of losing income due to life’s unexpected challenges. While this is certainly a concern worth being mindful of, you shouldn’t let it keep you up at night. Instead, you should obtain a general liability commercial insurance policy for your business.
Such a policy can protect you from liability and help you keep your doors open should a covered loss disrupt your income. Read on to learn more.
What is General Liability Commercial Insurance?
Also known as commercial general liability (CGL) coverage, is designed to protect businesses from financial liability associated with:
- Property damage
- Personal injury
- Bodily injury
As the name implies, CGL provides “general” coverage, which protects you from a broad range of incidents, including injuries or damage caused on your premises, as a result of your operations, or by your products.
Despite the comprehensive nature of CGL, it does not cover all risks or liabilities that businesses may incur. In light of that, many specialized businesses also obtain supplemental types of coverage. A few examples include:
- Business owners’ policies
- Home-based business insurance
- Commercial property insurance
- Professional liability insurance
- Product liability insurance
Depending on the scope of your business venture, you may need to consider these additional coverage options. First, however, you definitely need to obtain general liability commercial insurance.
How Much Is General Liability Commercial Insurance?
The exact costs will vary based on several factors, including:
- The industry you operate within
- Your claims history
- The number of people you employ
- Where you’re located
- How much coverage you need
According to Nerdwallet, CGL can cost as little as $50 per month. Although general liability commercial insurance can be quite affordable, a staggering 40% of small business owners don’t have any form of insurance. Three out of four businesses have insurance, but their policies are inadequate.
Operating without CGL is a dangerous game that could leave your business vulnerable in the event that someone files suit against you for property damage or bodily injury. Even a relatively minor suit could cripple your business.
If you obtain an adequate CGL policy from a company like Simpay Insurance Solutions, these expenses would be covered by us, not you. Your Simpay Insurance Solutions policy would cover court costs, legal fees, and any judgments, should the plaintiff be awarded one.
How Does General Liability Coverage Protect Me from Lost Income?
The good news is that obtaining a general liability commercial insurance policy offers a simple yet effective way of protecting your life’s work.
Let’s say that your business is the subject of property damage or personal injury claim and is not insured. In this scenario, you would have to cover court costs and any judgment-related expenses should the court rule in favor of the plaintiff.
Since you are self-employed, any potential income your business generates would have to be allocated to pay off these expenses.
As your business continues to grow, general liability coverage will provide you with the peace of mind you need to sleep well at night without worrying about everything from data breaches to injury claims. Not only can this allow you to close more contracts, but it can protect you from significant loss to ensure you can continue to keep your doors open.