As a small business owner, you face a wide range of risks every day. These risks can include anything from property damage to injury to a customer.
General liability insurance is a crucial form of protection that can help mitigate these risks and keep your business running smoothly. In this article, we’ll discuss what general liability insurance is, how it works, and why it’s important for small businesses.
General liability insurance, also known as commercial general liability (CGL) insurance, is a type of insurance policy that provides coverage for a wide range of risks that businesses face. This type of insurance policy is designed to protect your business from financial losses that can arise from lawsuits or other claims brought against you for bodily injury, property damage, or advertising injury.
General liability insurance works by providing coverage for legal fees, court costs, and damages if your business is found liable for an injury or property damage. For example, if a customer slips and falls in your store and sues your business for medical expenses and lost wages, your general liability insurance policy can help cover the costs of the lawsuit.
General liability insurance is important for small businesses because it provides protection against a wide range of risks that can have a significant impact on your business. Without general liability insurance, a single lawsuit or claim can result in substantial financial losses that can threaten the viability of your business. In addition to financial protection, having general liability insurance can also provide peace of mind knowing that your business is protected from unexpected risks.
General liability insurance typically provides coverage for the following:
- Bodily injury: This includes injuries to customers or other third parties that occur on your business premises or as a result of your business operations.
- Property damage: This includes damage to property belonging to others that is caused by your business operations or employees.
- Advertising injury: This includes claims of libel, slander, or copyright infringement that arise from your advertising or marketing activities.
- Legal fees and court costs: This includes the costs of defending your business against lawsuits or other legal claims.
General liability insurance typically does not provide coverage for the following:
- Professional services: If your business provides professional services, such as legal or accounting services, you may need to purchase additional professional liability insurance.
- Employee injuries: If one of your employees is injured on the job, you will need to have workers’ compensation insurance to cover their medical expenses and lost wages.
- Intentional acts: If you or one of your employees intentionally causes harm to someone or their property, general liability insurance will not provide coverage.
General liability insurance for small businesses is important. It provides coverage for a wide range of risks that businesses face and can help protect your business from financial losses that can result from lawsuits or other claims. If you’re a small business owner, it’s important to understand the risks that your business faces and to have the right insurance coverage in place to protect your business and your livelihood.
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