5 Key Benefits of Investing in Comprehensive General Liability Coverage

Every business faces hazards and risks that could lead to a lawsuit. Whether you own a construction firm that can be sued for injuries or a financial consultancy at risk of copyright infringement, all businesses should consider investing in liability insurance.

Liability insurance is the most popular form of commercial protection for businesses. Often referred to as comprehensive general liability coverage, it can be customized to fit the needs of each industry.

You’ll be Covered in the Event of a Claim

Legal action brought for property or personal injuries could cripple an unprotected business if they lack sufficient insurance coverage. A general liability business policy such as Demont Insurance provides enough legal fee coverage and potential settlements or judgments in such instances.

Your commercial general liability policy typically protects you against claims for property damage and personal or advertising injury unrelated to professional negligence. However, some specific events, such as auto accidents, contract disputes, pollution claims, or workers’ compensation, may require additional or alternative forms of coverage. You can add extra coverage by purchasing policy endorsements.

You’ll Be Covered in the Event of an Accident

No one can predict when a disaster might strike, but you can protect your business by investing in general liability insurance. This policy will pay for a third party’s medical costs and other expenses that arise when your company is found to be at fault in a serious accident.

For example, a customer visiting a retail store could fall on a wet floor, leading to serious injuries. In this situation, the injured party may file a lawsuit seeking compensation for their medical bills, loss of income and other damages. Your insurer would reimburse your business for settlements or judgments up to your policy limits.

Many small businesses bundle their coverage into a single business owner’s policy (BOP). However, you can purchase a general liability plan separately from a property insurance plan.

You’ll Be Covered in the Event of Litigation

You must pay for legal costs when a client or third party claims your business caused damages or injury. This is why comprehensive general liability coverage is a must.

For example, if a cash-strapped cybersecurity firm fails to buy general liability coverage before a client visits the office, the client could file a lawsuit for injuries suffered during the visit. However, the insurance would cover the claim if the policy were in place at that point.

This type of coverage also protects your company against advertising injury claims like slander, libel, and copyright infringement. However, it does not protect against errors in your work or professional negligence claims, which Errors and Omissions or Professional Liability policies can cover. You can also save money by bundling your insurance with a commercial property or business owner’s policy (BOP).

You’ll Be Covered in the Event of a Damaged Property

Investing in comprehensive general liability coverage shows clients you protect their interests seriously. Whether you have a property damage claim, like when workers accidentally destroy a client’s hardwood flooring, or an intellectual property issue, like a slander claim, having small business insurance protects your assets.

You can purchase a stand-alone comprehensive general liability policy or bundle it with other commercial policies, such as property and business interruption coverage. You can also save money by paying annually instead of monthly and choosing a higher deductible to lower your premiums. However, you should be aware that comprehensive liability policies do not cover personal injury or property damage to individuals, as other types of business insurance cover these. This includes health insurance, homeowners’ property portion, and dwelling fire insurance.

You’ll Be Covered in the Event of a Personal Injury

Comprehensive general liability coverage could cover injury or damage that affects third parties, depending on the policy you purchase. This includes property damage liability, which protects you if your business operations cause harm to someone else’s possessions. This could include, for example, if one of your workers moves an appliance into a client’s home and damages the hardwood floors and walls in the process. It also covers personal and advertising injury liability, which protects you against claims that your business has caused third-party financial or reputational harm through issues like libel and slander.

Liability claims aren’t uncommon and can be expensive to defend or settle. This is why a comprehensive general liability insurance plan is an excellent starting point for any business.