Why every business owner needs general liability insurance? If you own a business, you probably know that general liability insurance is essential to protect your assets. Whether your company works in the home or visits clients at work sites, general liability insurance protects you from lawsuits and property damage. Read on to learn more about the benefits and costs of general liability insurance. In addition to the reasons mentioned above, there are several other reasons why every business owner needs this coverage.
Covers medical expenses
A general liability insurance policy pays for a business owner’s medical expenses if a third party is injured due to the business owner’s negligence. While the coverage is not legal advice, the costs of medical services and equipment can add up quickly. Medical payments coverage pays for emergency care, ambulance fees, and other medical services for an injured party, regardless of fault. A recent study by AdvisorSmith found that the average cost of general liability insurance for small business owners is $597 per year. The survey included small businesses under $500K in annual revenue and businesses in 27 different industries.
Covers property damage
While general liability insurance is most commonly associated with retailers, it is also important for business owners. Accidents happen in all kinds of businesses, including retail establishments, construction sites, and professional practices. Slip-and-fall claims are one of the most common types of claims, but they also occur in all sorts of settings, including the workplace. In some cases, a client can get injured on the premises due to a company’s mistake, such as a faulty product or a malfunctioning sign. In other instances, a customer may have their leg broken by a piece of equipment used in a business. For example, a software prototype may damage a client’s operating system, or a construction worker might drill through a pipe.
Protects against lawsuits
One way to protect yourself from a lawsuit is by creating a legal contract between yourself and your customers. These contracts will define exactly what services you provide to your customers. In addition, these contracts can be a powerful tool in minimizing the risk of a lawsuit. To ensure that you understand the terms of any agreement, always retain copies of the relevant documents. By building liability protection into your contracts, you can reduce the possibility of legal disputes and protect your business from financial ruin.
The cost of General Liability Insurance for business owners depends on several factors, including the type of business, the amount of coverage, and the limits. The limits determine how much an insurance company will pay out in the event of a claim. Typically, these limits are expressed as per occurrence or aggregate, meaning that the limit is the maximum the insurance company will pay on a single claim. The aggregate limit, on the other hand, refers to the total of claims that an insurance company pays out during a policy year.
Required by most states
Whether running a small shop in your basement or a large corporation, you need general liability insurance to protect yourself from lawsuits and lawsuit-related expenses. Without this type of insurance, you’ll be on the hook for third-party lawsuits’ legal fees and damages. Plus, many business-to-business contracts require proof of general liability insurance. Finally, if you’re considering starting your own business, you’ll also need to show landlords and professional associations that you have current general liability coverage.
Covers everyday accidents
There are several reasons to have general liability insurance. Most business owners don’t have enough insurance coverage. Some don’t have any at all. Whether you have a business specializing in home repairs or a small storefront, everyday accidents can happen to any business. Even if you’re careful and follow safety practices, you still run the risk of causing damage to a customer’s property. General liability insurance helps you avoid a potentially crippling lawsuit from an injured customer.
Covers medical malpractice
Medical malpractice is a type of professional liability insurance. It pays out when someone is harmed because of a doctor’s mistake. General liability insurance also covers other liabilities like property damage and legal fees. This type of insurance protects business owners from these potential liabilities. In addition to medical malpractice, general liability insurance protects business owners from legal fees and legal settlements. General liability insurance can save business owners from financial ruin when an accident occurs.