in settling lawsuits brought against your business by injured third parties.
Some businesses rent buildings for operations and business purposes. General liability insurance offers protection against damages from fire, mold, floods, and other natural disasters. This insurance also protects the business from false and deceptive advertising, including libel, slander, and copyright infringement.
Business liability insurance often reassures companies and clients about your business. It covers many common lawsuits and, by so doing, provides sufficient confirmation to clients about the financial security of your business. Clients definitely want to know if you are capable enough to deliver and if your capabilities won’t be hindered by lawsuits or charges.
Other Situations That Require Your Business to Get General Liability Insurance Are:
Applying for a professional license:
Professionals like dentists, real estate agents, and accountants in the United States require a license in order to work. The requirements could include general liability insurance.
What Is Business Liability Insurance?
Business liability insurance is a kind of insurance that offers protection to the commercial activities of companies and business owners in the event of lawsuits and party claims. Policies under this insurance cover expenses related to lawsuits or other direct financial liabilities. There are three types of business liability insurance, and they are:
- 1. General liability insurance
- 2. Professional liability insurance
- 3. Product liability insurance
Owners of small businesses are particularly in danger of losing their business and finances if lawsuits and claims come knocking. Most partnerships and sole proprietorships are prone to costly expenses and are therefore in immense need of such insurance coverage.
Why Does Your Business Need This Type of Insurance Coverage
Business liability insurance shields and covers cost like medical expenses in the event of injuries suffered by employees or customers who get hurt on the business property. It also helps cover costs incurred
Getting deals with larger companies:
If you get a job as a general contractor, engineer, or landscaper in a big company or a huge project, the company may mandate you to get this policy.
Signing an office lease:
Any professional who rents an office or a workspace may need general liability insurance to get considered for the lease.
Policy Limits to Choose From
Most owners of small businesses choose either the $1 million / $2 million policy. There are different versions of these policies, and they include:
$1 million occurrence limit: activation of this policy ensures the insurer pays up to $1 million to cover any sort of claim.
$2 million aggregate limit: Activation of this kind of policy ensures the insurer pays up to $2 million to cover claims.
OtherEndorsements That You Might Need
Different risks can be covered under general liability insurance as it is extraordinarily versatile insurance. Some of the specific sub-insurances that can be tailored to meet specific risks are:
Product liability insurance-This policy covers the expenses incurred when a customer suffers any sort of injury from products that your company manufactured or sold.
Hired and the non-owned auto insurance- This policy covers damages caused by vehicles your business uses or owns.
This is how general liability insurance works and why you should consider getting one, especially as a small business owner. For assistance with your business insurance needs, contact the experts at Advanced Insurance Group. We are happy to help you with all your coverage needs and questions.