Every type of business, no matter the size, should have some type of insurance coverage. At the very least, you should have general liability insurance (GL). This type of insurance protects businesses from property damage, lawsuits, bodily injury claims, etc. It can also help pay for medical expenses and legal costs.
Imagine the devastating costs of just about any liability claim. It’s not just physical injuries that you have to be concerned about, but electronic data liability, advertising / libel injuries, actions caused by your staff, and so forth. What would happen to your company if your customers’ and/or employees’ financial information is stolen from a cyber attack?
While you might not be legally required to buy general liability insurance, some of the people with whom you conduct business will likely have such requirements written into contracts. This means you still might need this policy if you want to sign a client contract or commercial lease. Also, proof of GL coverage is required to apply for certain types of professional licenses.
How much of it will you actually need? The amount depends on various factors, such as the size of your business, type of business, number of employees, and the types of customers you regularly deal with. If you need to add more insurance later on as your company grows, your insurance agent can adjust the amount of coverage on an existing policy, or even offer assistance if you have to buy additional policies.
Exclusions to General Liability Insurance
What DOESN’T general liability insurance cover? One thing it usually doesn’t cover is employee injuries. For this, you will need to purchase worker’s comp insurance to extend protection to employees. In some states, workers’ comp coverage is a legal requirement.
The cost of a GL policy premium, like any insurance policy premium, varies widely depending on a variety of factors. As mentioned above, the type and size of your business plays a role. An additional factor includes the number of years your business has been in operation, as more experience may result in lower rates. There are also factors such as the physical location and condition of your business property and your insurance claims history.
General liability insurance can help cover property damage costs such as fire damage and product liability should something happen to cause harm to one of your covered products. What if any of your products are stolen, or there is damage to your place of business due to a burglary? GL insurance usually covers theft, burglary, and reputation harm.
Hiscox is a highly-rated company that helps businesses obtain affordable general liability insurance. It’s definitely a good place for small and new businesses to start doing research. You might also find Hiscox deals on other types of insurance such as workers’ compensation.