Business General Liability Insurance Policy Information
Business General Liability Insurance. A customer slips and falls on your property and has to have herniated disc surgery. An employee tries to claim an injury that occurred outside the workplace occurred while they were at work. As a small business owner, there are so many issues which can arise; this is where your business general liability insurance policy can come into play to protect you.
With this in mind, there are varying levels of coverage; further, there are specialized policies based upon the type of business you operate. For this very reason, as a business owner, you have to compare quotes and insurers to choose the right policy (and sufficient level of coverage). So what will your business general liability insurance policy cover? These are some of the basics.
Knowing how business general liability insurance in protects your company is important. Find out to shield your business from lawsuits, get a fast quote and your certificate of insurance now.
How Much Does Business General Liability Insurance Cost?
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.
Do You Need Business General Liability Insurance?
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.
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.
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 producrs 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.
At a basic level this insurance help ensure you are not stuck with huge out of pocket expenses if something ever does go wrong. It is the only sure fire way to know you are covered from different risks that that your face on routine basis, within the normal course of business, which you simply can't avoid as a business owner.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Commercial Auto
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employers Liability
- Employment Practices Liability
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Professional Liability
- Workers Compensation Insurance
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.