Important tips to have general liability insurance
As a business owner, it's important to have general liability insurance. It can protect you from a variety of possible risks, such as lawsuits. Not having this insurance policy could result in you paying thousands of dollars in damages. To avoid this financial catastrophe, here are 3 tips to have commercial general liability insurance. It may be as affordable as $300 per year, but it can protect you from a multitude of potential liabilities.
Ask about exclusions. All liability policies exclude some types of losses. Ask the agent about any exclusions that may be relevant to your business. For example, if you own a restaurant, ask about liquor exclusions. Otherwise, you could be sued for hundreds of thousands of dollars. Ask about coverage gaps and exclusions before signing up for general liability insurance. Make sure your policy meets the requirements for your industry and business.
General liability insurance covers two types of risks: physical injury and personal injury. Physical injury refers to harm to the body. Personal injury is anything that causes damage to another person or their property. Examples of personal injury include advertising injuries. For these risks, general liability insurance is crucial. It's essential to have insurance that covers both types of risks. It's also necessary to have coverage for intellectual property and copyright infringement.
While having a business owner policy can protect your personal property and commercial buildings, a general liability insurance policy will protect you in case of a lawsuit from an injured client. Without this insurance, you could end up paying for everything related to a lawsuit, including legal fees. So, it's best to protect your business from any such legal issues. You never know when an accident could happen. Don't leave yourself unprotected.
How much is general liability insurance?
General liability insurance costs vary based on several factors. The biggest factor is the type of industry you're in. Some industries are considered higher risks than others, and insurers will charge higher premiums for these businesses. Small businesses can reduce their premiums by reducing their risk of lawsuits. Retailers and photo studios typically pay lower premiums. Insurers calculate premiums based on the size of the business and its assets.
Commercial general liability insurance is generally affordable for small businesses, but the amount of coverage depends on your industry, size, location, and risk level. Typical coverage limits range between $1 million and $2 million. You'll want to determine the exact amount of coverage you'll need and what level of protection you need to maintain your company's financial health. General liability insurance is available online, and comparison sites are essential for small businesses.
If you're not prepared to handle a lawsuit, you're taking a big risk. It costs money to hire legal counsel, and if the lawsuit goes to court, the costs will exceed $75,000! Even if the case doesn't go to court, a small mistake can cost your business a fortune, and it can even lose clients as well. General liability insurance is worth the investment because it can save you thousands of dollars!