General liability insurance safeguards you from claims that could hurt your business, like lawsuits and property damage. This insurance coverage will form the foundation of your small business protection.
Normally, it is difficult for businesses or general contractors to work without general insurance. General liability insurance is intended to guard operators and owners of companies from claims that may come from a broad spectrum of sources. These exposures could be just about anything, including liability engendered by accidents from the operations of the insured party, contractual liability, products manufactured by the insured party, etc.
The liability you select, whether it is one, two, or three million dollars, determines the cost of general liability insurance. Also factored into the rates are the kind of work undertaken, gross receipts and total payroll expenses. Similar to auto insurance, when it comes to general liability insurance, you will first have to make a down payment and then follow it up with installments. Before buying general liability insurance, it is best to compare the quotes available in the market.
It is the business owner’s or general contractor’s job to make sure that the people working under him/her are covered by an insurance policy. If for example, a person who is not a part of the project gets injured, the injured person’s lawyer can target just about anyone involved in the project. The more individuals that are involved, the greater the chances of a successful lawsuit.
A General Liability Insurance policy can help cover the cost of claims against your business for things like:
Third Party Bodily Injury. If a person is injured on your business property, he may make a bodily injury claim against your business. For example, a package delivery man trips on loose carpeting in your accounting office, falls and breaks his wrist. General Liability Insurance can help cover the costs of the bodily injury claim he makes against your business for this accident.
Third Party Property Damage. If you or someone on your payroll damages a third party’s property, you may face a property damage claim. General Liability Insurance can help cover the costs of property damage claims made against your business. For example, an employee using equipment on your business property accidentally damages your neighboring business’s office. The neighboring business makes a property damage claim against your business. General Liability Insurance can help cover the costs to settle this property damage claim.
Advertising Injury. General Liability Insurance can help cover the costs of a claim made against your business because of its advertising practices. For example, a business in the same industry as yours makes a claim that your advertising looks too similar to theirs and is infringing on their business. General Liability Insurance can help cover the costs your business will incur to deal with this claim.
Reputation Harm. Other businesses may make a claim that your business has harmed their reputation. For example, during an interview about your business, you are asked to comment on what you think of the competition. The competitors read this interview and make a claim that your business slandered theirs. General Liability Insurance can help cover the costs to resolve claims of libel and slander against your business.
Additional Insured ( Optional ). It will automatically covers any person or organization as additional insured where required by contract.
Commercial General Liability insurance can help cover costs for: