General Liability Insurance, also known as Commercial General Liability (CGL), protects businesses from third-party risks such as bodily injuries or property damages caused by unexpected events like landscaping stones striking outdoor sculptures accidentally. CGL policies offer protection for common third-party risks that arise for them from operating their business, like slip and falls or landscaping stones hitting outdoor sculptures unintentionally.
Without proper protection in place, claims against your business can quickly mount up, becoming both costly and risky to its survival. Without adequate insurance policies in place, lawsuits filed against it can prove costly – possibly leading to bankruptcy as a result.
Coverage for a wide range of business risks
General liability coverage (commonly known as commercial general liability (CGL) coverage) protects a business against lawsuits and property damages brought on by third-party bodily injuries and property damages, medical payments for customers injured on your premises and legal defense costs associated with being sued for slander or libel lawsuits; additionally it can help repair or replace reputation after negative publicity events like false advertisements.
Most small businesses rely on commercial general liability policies for protection, yet it’s crucial that their limits and deductibles are understood before purchasing this type of coverage. A typical small business policy usually offers $1 million per-occurrence/$2 million aggregate limits; to enhance risk management efforts further many companies purchase an excess liability policy which increases this limit and can help pay for large lawsuits.
Professional services providers should consider adding errors and omissions insurance to their commercial general liability policy, another form of business insurance NerdWallet reviews. You can get quotes online from providers like Hiscox and The Hartford; Hiscox even offers a business owners policy which bundles property coverage along with general liability into an easy package designed specifically for small businesses.
Coverage for lawsuits
If your business is ever sued, general liability insurance provides financial coverage for legal fees and judgments awarded against it, as well as damages awarded to plaintiffs – up to your policy limits. Note: this doesn’t include employee injuries which should be covered under workers’ comp. For incidents exceeding this coverage limit, commercial umbrella policies might offer further assistance.
Some general liability policies include other forms of coverage as well, like product liability and false advertising insurance. If your employees make unfounded comments that cause reputational damage against rival businesses, a lawsuit might be filed against your business – something many might find surprising but can happen. Some general liability policies even cover lawsuits related to libel or slander that arise out of employees making such remarks about competitors.
Nearly all commercial insurance providers provide general liability business insurance policies, with many offering online purchasing. You may need this coverage before renting or borrowing money, and clients might insist on it before doing business with you. Most policies combine general liability coverage with commercial property and professional liability policies into one comprehensive business owner’s policy (BOP). Licensed agents know which options work best for each type of business and can help customize protection at a price often lower than buying the policies individually.
Coverage for property damage
General liability insurance’s property damage coverage protects third-party personal and real property damages caused by your business, whether sold products or performed services; as well as accidental injuries sustained on premises owned or used for your business. For example, this could cover instances such as customers slipping in your store and breaking their arm; or an employee accidentally damaging an outdoor sculpture while performing landscaping services for clients. It also can cover costs to repair or replace damaged items as well as legal fees/settlement payments should your business become involved with an incident and being sued as well.
General liability covers nonphysical injuries as well, such as libel and slander. This coverage typically comes as part of the personal and advertising injury protection within a general liability policy and can help pay legal expenses and settlements should your business be sued for defamation or slander.
Understanding what a general liability policy covers is key to selecting the most suitable policy for your business needs. Consult a general liability insurance specialist regarding your specific risks and coverage needs before finding the ideal policy at an economical price. Afterward, compare prices from multiple insurers for optimal savings potential.
Coverage for medical expenses
Commercial general liability policies provide third-party coverage for bodily injury and property damage caused by business activities. They typically include product liability coverage which pays to repair or replace third-party properties damaged by products manufactured or distributed by your company; as well as medical expenses and legal expenses should someone become injured as a result of your operations, services or products. Most small businesses opt for standard policies with $1 million per occurrence and $2 million aggregate policy limits – or add commercial umbrella coverage for added layers of protection and increased maximum limits.
Restaurants, food service companies, convenience stores, retail businesses and professional services firms all require coverage against potential liabilities for people or their possessions when doing work involving others or them. Before selecting a provider it’s essential to review quotes and policy details from various providers in order to select one that fits your business best; workers’ compensation insurance should also be considered since many states require businesses that employ workers to purchase it as it can cover medical costs and lost wages for employees who suffer injuries on the job.
Errors and Omissions Insurance provides protection from damages caused by mistakes in their work, providing an important safeguard for professionals such as accounting firms, architects, lawyers, hair salons and computer repair shops. Employment Practices Liability Insurance (EPLI) helps cover expenses associated with harassment claims of harassment, discrimination or wrongful termination in employee claims made against employers; you can purchase this coverage as either a stand-alone policy or part of a Business Owners Policy (BOP) or Commercial Package Policy (CPP).
