Buy Business General Liability Insurance

Business General Liability Insurance is a type of insurance coverage that protects a business from financial loss due to third-party claims for bodily injury, property damage, or personal injury arising from the business's operations, products, or services.

This insurance coverage covers the cost of legal defense, settlements, and judgments up to the policy limits. This coverage is typically required for businesses operating in certain industries and is usually a part of a comprehensive business insurance policy.

The average price of a standard $1,000,000/$2,000,000 Business General Liability Insurance policy for small businesses ranges from $27 to $59 per month based on location, industry, payroll, sales and experience.

In short, the answer is yes. But, as is the case with any other insurance policy (except workers compensation in most states for any non-owner employees), it is typically optional. So, as a business owner, some reasons to consider purchasing a business general liability insurance policy include:

• Protection from false claims by clients or employees.
• Protection if you deal with equipment (such as IT companies, servers, computers, etc.)
• Protection if you deal with vendors or third party agents is afforded to your business.

Business general liability insurance offers the following coverages (more can be added with endorsements in certain cases):

Bodily Injury

Bodily injury that occurs to a vendor or a customer on your premises is covered under your policy protection. If a client slips and falls, or other accident occurs, your policy will kick in and pay for the injury, medication, surgery, or other medical bills.

Of course the amount of coverage, and deductibles, should be considered when comparing policies, so you have enough coverage to cover these expenses.

Damage or Loss To Property

If damage or loss to your customer's property takes place, your business general liability insurance policy will also protect these losses or costs. If your employee spills coffee on a client's server and wipes the entire system clean, you are covered. Or if a tree falls on a home, you can purchase coverage to protect these losses.

Again, depending on the level of protection and how much you pay for coverage each month, protection will vary for each policy holder.

Personal Injuries

Issues such as slander (if a customer overhears something negative being said about them by an employee) or other personal injuries that occur in the workplace, are also covered under your business general liability insurance policy.

From attorney fees, to paying clients for damages in a settlement, coverage options are available which business owners can compare with different insurers.

Product And Completed Operations

Covers liability arising out of the insured's business operations or products conducted away from the insured's premises - once those operations have been completed or abandoned. For example - a home builder builds a home, then goes out of business a few years later.

If there was a defect and a homeowner got hurt many years later - this type of coverage could pay the claim.

Which Policy Is Right For Your Business?

As a business owner, there are different levels and types of liability insurance you can purchase. For example, professional liability insurance protects against another person's claims against the business.

A BOP (business owner policy) is general liability coverage with the addition of property protection policy additions you can add onto the policy if desired.

Depending on the line of business, the type of client you deal with, where the business is located, amount of assets, and other variables, there is more than one option and additional policy terms you can add to your insurance policy.

As a business owner, only in comparing insurers will you learn about your options, to ensure you have sufficient business general liability insurance coverage for your business.

Below are examples of Business General Liability claims and the coverages that can help protect a business against them:

1. Slip-and-Fall Accidents: Imagine a customer slips and falls in your restaurant because of a spilled drink that wasn't promptly cleaned up. The customer breaks a leg and decides to sue your business for medical expenses and loss of income during the recovery period. A Business General Liability Insurance policy would help cover the costs of the legal defense, any settlements or judgments, medical bills, and possibly even the income the plaintiff lost while recovering.

2. Property Damage: Suppose a landscaping company accidentally damages a client's expensive statue while working in their garden. The client decides to sue the company for the cost of repair or replacement. In this case, Business General Liability Insurance could help cover the costs of the lawsuit, including the cost to repair or replace the statue, legal defense costs, and any court-ordered judgments or settlements.

3. Product Liability: If a toy manufacturing company produces a toy that ends up injuring a child due to a manufacturing defect, the parents may decide to sue the company. The company's Business General Liability Insurance would help cover the costs of defending against the lawsuit, any settlements or judgments, and the child's medical expenses.

4. Copyright Infringement: A business using a photograph on its website without permission could be sued by the photographer for copyright infringement. The business's General Liability Insurance policy could help pay for the legal defense costs and any settlement or judgment that might arise from the lawsuit.

5. Defamation: If an advertising company releases an ad campaign that unintentionally slanders a competitor, the competitor may decide to sue for damages. In this case, the Business General Liability Insurance would cover the cost of legal defense, as well as any settlements or judgments. However, it's important to note that intentional acts are typically not covered by insurance policies.

Please note that all insurance policies have limits, exclusions, and conditions, so it's crucial to read and understand your policy or consult with a knowledgeable insurance professional.