What Is General Liability Insurance and Do I Need It For My Business?

In the United States alone, 40 million lawsuits are filed every year. And without general liability, you’re business could be next. That’s because your business is liable for any slips or damages a customer may have while in your facility.

But with business coverage, you can avoid financial and legal trouble if any incident was to arise. So if you want to learn how you can protect your business, then keep reading!

What Is General Liability?

General liability is an insurance option for all businesses. This kind of insurance has minimal protection and can only cover certain injuries or accidents.

There are many different coverage options for your business. However, general liability will protect you from the following:

  • Settlement costs
  • Third-party injuries that occur on your property
  • Third-party injuries from your business or employees
  • Third-party property damages caused by your business or employees
  • Copyright infringements
  • Slander

It’s always best to be protected from these kinds of accidents. And having business coverage can be a great support, especially if your business has heavy foot traffic, or there’s a lot of moving parts constantly.

What Is Not Covered under General Liability?

Your coverage policy may vary but for the most part coverage options stay the same throughout insurers. However, it’s important to know what you can and cannot get covered with general liability.

For starters, you are not covered if someone was harmed from an unsatisfactory performance. You are not covered for any injuries your employees experience while working. Lastly, general liability does not protect you if you manufactured, delivered, or sold a faulty product that resulted in an injury.

Who Benefits from General Liability Insurance?

Any business can benefit from having general liability. However, this kind of insurance is tailored for businesses that have a lot of moving parts. Here are some examples:

  • Businesses that are required to have general liability
  • Those who work on a third party property
  • Businesses who meet clients on a day to day basis

These are all common examples of why you would need general liability. However, it’s always best to talk to this insurance agency, to get the best information on business coverage and more!

General Liability Insurance Limits

When you get general liability you’ll have to keep track of two numbers. The first being, the per-occurrence limit, and the second being the aggregate limit.

The per-occurrence limit is the highest amount your insurance company can payout for a claim. Typically, this limit will be around $1 million.

The aggregate limit is the total amount your insurance can pay in one year. Typically, most insurance companies will make this a 2 million dollar limit!

The Best Policies Made Just for You

Now that you know more about general liability, you can start taking the steps to protect your business. Always remember to talk to your insurance agent about any remaining questions you may have!

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