Small business general liability insurance protects your business against liabilities that arise from accidents and errors. If a person is injured on your premises, or if you accidentally damage property or damage someone’s equipment, you’re liable for the cost of their injuries and damages.
This form of general liability coverage protects small businesses from claims of injuries or damages to others as a result of an injury suffered by the insured. General liability coverage pays for any damages you cause or suffer because of an accident or the negligence of someone else, such as your employees, contractors and suppliers. If one of your employees injured someone while on duty, this liability coverage would cover their legal fees and damages.
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What are the Types of Small Business General Liability Insurance?
There are four categories of small business general liability insurance: commercial property insurance, general liability insurance, workers’ compensation and health insurance. Each category addresses different issues and offers different kinds of protection to your business.
Commercial Property Insurance
In the event that your building, fixtures and/or equipment is damaged, lost or destroyed, your commercial property insurance protects your business from financial loss caused by such occurrences. To cover such losses, you should consider obtaining commercial property insurance that offers the following:
Physical damage coverage. If your business is located in a building, you may have the right to have a building policy cover only the contents inside your building, while your commercial property insurance might provide coverage for both your business personal property and your building. You can find out more about property insurance in buildings from insurance companies, such as the American Council for an Insurance Policyholder’s Rights.
Building coverage. You may be able to obtain liability coverage for your business from a policy that covers damage or destruction of your business’ building.
General Liability Insurance
In addition to general liability insurance, your commercial property insurance policy might provide you with coverage for claims that arise out of the negligent conduct of your business. You may want to consider adding general liability insurance to your commercial property insurance policy to cover the financial risk that you may be held personally liable for any injuries to others that you may cause.
Your commercial property insurance policy might also provide you with coverage for health claims. In the event that you are injured or ill while on the premises of your business, you may have a right of action against the person who caused your injury, provided that you have the right to sue them for damages in the state court system.
Workers’ Compensation Insurance
Your commercial property insurance policy might also provide you with coverage for workers’ compensation claims that arise out of the employment of your business employees.
In the event of a fire, earthquake, hurricane, tornado, etc. disaster that occurs at your business, your commercial property insurance policy can help you to recover the cost of damage to your business and your personal property. However, a business owner should be aware that property insurance typically does not cover the actual cash value of your building, building fixtures and/or equipment.
What are the Key Considerations for Selecting Small Business General Liability Insurance?
The key considerations for selecting small business general liability insurance include the following: Type of business, types of risks the business is exposed to, size of business, the amount of revenue generated by the business and its costs, revenue growth potential and financial strength.
Small Business General Liability Insurance protects against lawsuits related to bodily injury and property damage caused by your business. It covers you and other participating employees, directors and officers of your business.
The most important consideration is to ensure that you have enough liability limits to provide for your operations and the legal claims you will likely face. As a business owner, you should be able to provide for your employees, customers and other parties who act on your behalf without fear of liability since most of your potential problems either arise from other people doing something wrong or from third parties who are trying to collect on old debts.
How do I Find the Right Small Business General Liability Insurance Policy?
It can be a challenge to find the right small business general liability insurance policy for your company. Many factors play into creating an accurate estimate of coverage, including:
1) The location of your business
2) The number of workers and how much time your staff spends in the field
3) The type of work that you do
Business owners have two ways to determine what an appropriate amount of insurance coverage is for them. They can purchase their insurance through their business owners insurance or work with a broker or insurance agency to find a general business liability insurance policy that is perfect for their needs.
Business owners insurance, or BOP, covers your business from a financial perspective, so that if someone is injured or damaged by the business, you are able to pay for it. It is also required by law to protect the business owner if their workers are injured on the job. If the business insurance company cannot cover you, they will pay a portion of your liability coverage, called an umbrella.
The second way to determine what an appropriate amount of insurance coverage is for your business is through a general business insurance broker or agent. This is an agent who specializes in insurance for small business, so they can best advise you on the best general liability insurance policy that will protect you and your company.
Many insurance companies have different rates for general business liability insurance for small businesses. You may want to consider using multiple companies at once. It may be more cost effective to apply for general business insurance on a monthly basis, rather than once or twice a year. The more companies you apply with, the more likely you will find the best insurance policy for you and your business.
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