Business

General Liability Insurance for Small Business: What Is It and What Does It Cover?

Do you stay up late at night worried that your small business will be involved in a personal injury case at some point? Are you looking for the best ways to insure your new start-up? If so, then you need to look into general liability insurance for small business.

Doing so can help you get the coverage you need for several claims that our company might have to endure. That could be things such as property damage, someone getting injured, and so forth.

See below for a detailed guide on general liability insurance. That includes what it is, how you can benefit from it, and so much more.

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What Is General Liability Insurance?

Let’s lay out a scenario for you real quick. Say you’re the proud owner of a local HVAC service. You serve your community with pride, ensuring that all the residents have a comfortable climate inside their homes.

Then, one day, you receive a phone call from one of your technicians saying that they caused damage to your client’s property while repairing.

Now your client is left with only two options: pay for the damage—which was to no fault of their own—out of their own pocket, or pursue compensation for their losses.

If your small business has a general liability insurance policy in place, all of the damage and injuries will be covered.

General liability insurance quote is used as a way to protect small businesses (such as yourself) from having to endure the substantial costs of injury claims, personal injury claims, property damage claims, and the like.

Without it, your company will have to pay for those costs out of pocket, which you may never be able to financially recover from.

That said, it isn’t the only form of business insurance that you need. Be sure to read this guide for more information on the different types of business insurance you should be investing in.

What All Does General Liability Insurance Cover?

If your company is ever in a moment of need, you’ll be desperate to find any peace of mind. General liability insurance, and other business insurance types like it, can protect your company from a huge financial setback.

Here are some of the things that general liability insurance can protect your small business from:

Copyright Infringement– Using someone else’s content (such as a photo) without the owner’s permission.
Bodily Injury– Any scenario in which one of your clients gets injured from your services, property, etc. Covers their medical bills, loss of wages, and so forth.
Property Damage– Applies to the HVAC example listed above. Covers any replacements or repairs to the client’s property that stem from your service’s mistake or error.

It’s worth noting that there are certain things that business liability will not cover.

For example, if one of your workers is injured on the job, that would fall under the coverage of a workers’ compensation policy. That’s why it’s so important that you learn about the different types of business insurance that you need.

What Are the Benefits of General Liability Insurance?

General liability insurance is a key cog in your business operations. It serves as a protective layer while you and your staff carry out your jobs. See below for several benefits of having a policy.

1. Peace of Mind

No more staying up at night wondering if tomorrow is the day that you get sued. If a client ever seeks compensation for property damage, your general liability insurance provider will take over the situation.

You can go throughout your day providing services with more confidence. As long as you provide your staff with regular training, many errors can be avoided.

However, as with any line of work, there’s always the risk of an error. It’s in those moments that you’ll have the financial backing you need. Your company and its future are protected, thanks to your general liability coverage.

2. Protects Your Business Relationships

Let’s go back to our previous example of the HVAC business, for a moment. If your company doesn’t have general liability insurance, it can quickly put a damper on the relationship you have with the client that’s pursuing compensation.

General liability insurance can help ensure that your business relationships with your best clients are protected.

If they ever sustain damage from your service, they’ll look to settle with your insurance provider. Thus removing you from the equation entirely.

It isn’t uncommon for clients to continue using a service, even after a previous mistake led to some damage.

3. Financial Protection for All Parties Involved

You legitimately care about your clients. You don’t ever want to see them experience a financial setback due to an error in your services.

One of the biggest perks of general liability insurance is that it’s able to protect the finances of every party that’s involved. Your policy can protect your company, yourself, your workers, and your clients in case of an emergency.

Many clients are now looking to make sure that services have business insurance in place before they hire them. If you don’t have a policy, then clients these days will avoid you like the plague.