Is Your Business Covered? What You Need to Know About Business General Liability

There are a couple of business essentials that no company should operate without, and general liability insurance is one of them. You know that it’s responsible to hold a general liability insurance policy, but do you know exactly what coverages it affords? Here’s everything you should know to make sure your business is covered from the unexpected.

What Does General Liability Insurance Do?

General liability insurance, also referred to as commercial general business liability, is an insurance policy designed to protect your company’s assets by covering the costs and expenses incurred during unexpected accidents.

You can expect your general liability insurance to provide coverage in the following instances:

  • Someone gets hurt on your business property
  • You or one of your employees causes property damages or injuries to others
  • You need to hire a legal defense
  • You must pay a settlement after losing a court battle
  • You cause damage to the property that you rent from a landlord

How to Determine Your Liability Coverage Needs

The nature of your business will determine your liability coverage needs. Some businesses are involved in industries that are more vulnerable to issues than others. Insurance companies evaluate coverage needs based on the type of business you are in and the perceived risk associated with it. For example, a building contractor needs higher liability coverage than a web designer.

When you select your policy, you’ll choose a plan based on the maximum amount your insurance company will potentially pay out against a liability claim. This is why it’s dangerous to choose a policy with very low coverage. Say your liability coverage goes up to $50,000. That might sound like a lot of money, but it’s possible for your business to be sued for $250,000 for the medical costs of an injured customer. Your business would be held responsible for the $200,000 difference, a price tag that could put you into bankruptcy.

Get the Professional Help You Need

Liability insurance is available in many types and amounts, and you can even choose to purchase excess insurance or umbrella insurance to increase your coverage limits. It’s helpful to work with an insurance expert who can evaluate your business needs and guide you to the best policies. Make sure your own business is sufficiently covered for the unexpected by calling (727) 372-5559 to get professional help from Tampa Bay Insurance.

Note: Coverage examples and descriptions are not absolute and are for informational are sample purposes only. Please refer to your policy for specific coverages and exclusions.

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