General liability insurance is an absolute must for business owners in every industry. Irrespective of the size of the operation or the scope of work that is being performed, this coverage is vital for protecting the financial interests of businesses, the people who receive services from these entities and more. While yearly premiums might seem like an excessive addition to your company overhead, these are often far lower than the out-of-pocket costs that you can incur if successfully sued by another party.
How General Liability Insurance Will Help
Commonly referred to as commercial business general liability insurance, this coverage will cover the legal costs that you face if you or your employees cause damage to someone's property. It will also cover the expenses that are incurred when someone sustains injuries on the property that you rent or own. In these events, these policies will pay out sufficient funds for the medical costs of all injured parties including compensatory and punitive damages and non-monetary losses.
As a commercial tenant, you can additionally rely on these plans to cover any damages that you cause to the property you are renting. Thus, commercial tenants are often obligated under the terms of their lease agreements to have this coverage in place. Moreover, these plans are additionally effective for protecting you against the financial harm that is caused by copyright infringement, libel suits, slander and false advertising.
Get More Business with General Liability Insurance
Getting general liability insurance is not just about protecting a business from legal and financial harm. It is also ensures that the company's services remain marketable and desirable. Few consumers are willing to work with companies that lack this coverage and as an uninsured business owner, you are far less likely to receive invitations
to bid for jobs. Your business-to-business relationships can suffer and most of your inquiries concerning available projects will be cut short as soon as you fail to provide adequate proof of coverage. It is important to note that giving your customers a sure form of recourse when problems arise is also the best way to maintain a good commercial reputation, especially when dealing with the unexpected.
Maintain Your Legal Right to Provide Professional Services
In most states, you will be unable to maintain licensing and provide professional services in a legal capacity if you lack this basic coverage. Thus, binding an affordable plan can mean the difference between maintaining your status as a legitimate operation and not. Fortunately, given that there are many other plans that small businesses are required to secure including state disability insurance and workers' compensation insurance, it is often possible for business owners to get considerable discounts when binding all of the necessary plans in the same place.
How Much Coverage Is Needed
The amount of coverage that is required for protecting your company is dependent upon the nature and size of your business and the amount of risk that is associated with your operations. The maximum amount that you insurer is willing to pay out for any given claim should be reflective of the maximum damages that you are at risk of sustaining. Any legal, medical or other expenses that exceed the maximum claim amount will have to be paid out of pocket. In the event of a major lawsuit, a high-quality and comprehensive policy will prove well-worth the extra costs. Ultimately, the need for coverage or the need for higher-quality and more all-inclusive coverage is not something that many business owners can afford to recognize in hindsight.