Why Business Owners Need General Liability Insurance

Did you know that four out of 10 small business owners are likely to experience a property or general liability claim in the next 10 years? Claims range from unexpected incidents, damage to a customers property, to unforeseen accidents, such as a customer getting injured after slipping and falling.

Whether you are a boutique hotel, a florist, a tech firm, a construction company or a food truck,  as a business owner, just the fact you operate a business means you run the risk of a person or another business claiming you, your product or your employees caused them injury or damage and initiating a lawsuit. 

Without the protection of commercial general liability insurance, you could be liable to pay  expenses resulting from a lawsuit with your personal or business assets, with the outcome being catastrophic losses for your business and family. .  

At EPB&B insurance, we work with a broad range of companies that offer General Liability coverage in a multitude of industry niches. Here is an overview on why general Liability is a must for your business. 

What Does It Cover

Commercial general liability business insurance covers a variety of claims for damages that can result from:

  • Non employee Injuries that happen on your property, such as those from slips or falls.
  • Bodily injury or property damage to a third party caused by your work, products or your employees’ activities.
  • Liability of others assumed in the specifically defined contract, such as a customer or vendor injured on your property.
  • Libel, slander, or business disparagement  .

Why Do You Need It? 

If you or your employees interact with customers face-to-face, access customers’ property, advertise or market your services, work on job sites, or enter into contracts requiring general liability coverage, Commercial general liability insurance is right for you.  In addition: 

  • General liability insurance policies can help you land more customers and contracts, as many of them won’t work with you unless you can prove you’re insured. Even if GL coverage isn’t required, having it can make customers more comfortable working with you.
  • It prevents you from paying out of pocket for damages and lawsuits that potentially could be devastating to your business.
  • It can provide protection in case you manufacture or sell a defective product that causes injury or damage.
  • It can meet legal business insurance requirements if you want to rent or lease a space for your business.
  • It can cover some accidents or damages that happen in your home office (your homeowners’ insurance doesn’t usually cover business-related incidents).

Is It Required? 

Commercial liability insurance is not required by federal law, but most cities and states have their own legal requirements for business owners who work with the public. For example, if you’re a contractor and you’re applying for a license, most states will require you to provide proof of GL coverage before you can get licensed.

Regardless of your state’s requirements around general liability insurance, it’s a good idea to take out this policy. Most customers won’t work with you unless you have it, and some vendors won’t allow you on their property without proof of coverage.

Examples of how General Liability Insurance Can Protect Your Business: 

  • A customer trips and falls on your property resulting in  bodily injury.
  • A gas attendant at a station you own fills a car with unleaded instead of diesel,  causing damage to the customer’s engine.
  • As a contractor, youtube break a water line while remodeling a home, resulting in water damage to the property.

Contact Elliott, Powell, Baden and Baker and we will help find the right general liability coverage for your business.

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