How General Liability Insurance Can Protect Your Business

General Liability Insurance is one of the most important policies that every business should have. It covers physical damage to people and property and can save your business from costly lawsuits.

For example, if a client slips and falls in your store, your general liability policy might pay for their medical expenses. It might also cover property damage that happens during a delivery or as the result of a product you produce.

Coverage for third-party claims

Whether your company accidentally breaks a customer’s window while working on their home or your employee says something that damages their reputation, these incidents can add up quickly and cost you thousands of dollars. But with a general liability insurance policy, you can get the financial cushion you need to cover these expenses and protect your business’s assets.

Known as commercial general liability insurance (CGL), this type of policy provides a financial safety net for your business in the event of a claim. It may help pay for bodily injury, property damage, copyright infringement and advertising injury, as well as your legal costs to defend against these claims.

Most small businesses should consider purchasing a general liability policy. In fact, some customers or contractors may require it before you’ll work with them. And it’s usually part of a larger policy, such as a business owner’s policy (BOP).

Many types of small businesses can benefit from the protection that a general liability policy offers. But it’s especially important for trucking companies. This is because it can help them cover the expense of repairing or replacing third-party property, as well as covering bodily injuries and other claims that could arise while on the job.

As a trucking professional, you can’t control what other people do or say, and accidents can happen—particularly when you’re on the road. It’s not uncommon for these accidents to result in medical bills and property damage, which can put your business in a tight spot. Fortunately, a general liability insurance policy can help protect your business from these unexpected expenses.

The specifics of a general liability insurance policy can vary, but you’ll want to check out the coverage limits to make sure they meet your business needs. For example, you’ll want to look at the per-occurrence limit and the total annual limit. It’s also important to review the reviews and complaints of your provider. These can give you an idea of the provider’s reputation and the quality of customer service. Typically, higher limits will mean more expensive premiums. But it’s important to find a balance between the amount of coverage you need and how much you can afford to spend on premiums.

Coverage for off-premises claims

Depending on your industry, general liability insurance can help pay for claims related to bodily injury, property damage and other types of incidents. It can also protect your business from lawsuits related to a variety of situations, including copyright infringement and reputational harm. If a client trips over a ladder while visiting your office or one of your employees damages a customer’s home while moving an appliance to the vehicle, you could face expensive legal fees and court costs without a good general liability policy in place.

The average slip and fall claim costs about $20,000, and reputational harm claims can cost more than $50,000.1 Without the proper coverage, these claims can put your business at financial risk and even lead to a loss of clients or contracts.

Your insurance provider can provide more information on the specifics of a general liability policy and how it works. They can also help you determine how much coverage you need and what options are available to you. You can purchase general liability as a standalone policy or find it combined with other policies such as a commercial auto policy, workers compensation and business owners policy (BOP).

You should also familiarize yourself with any exclusions that may apply to your policy. For example, a common exclusion is for claims that are not deemed to be caused by your business’s negligence or fault. This could include maintenance costs on an elevator or escalator that is not up to code.

The cost of a general liability insurance policy can vary, but it is typically less than $30 per month for most small businesses. Some larger companies or those that have a history of claims may pay more. Your insurance agent can help you customize a policy to fit your unique needs and budget.

To get started, compare quotes from multiple providers online using a comparison tool. It’s fast, easy and free to use. Then, choose a provider that offers the right amount of coverage for your business and provides it at a fair price. Many of the top companies also offer a convenient way to buy a policy through their website.

Coverage for business interruption

Business interruption coverage is an important coverage to consider for commercial policies. This coverage is intended to reimburse businesses for lost revenue and operating expenses when their facilities are destroyed or shut down due to property damage. The coverage may also pay for relocation costs, employee wages, and loan payments. Some insurance providers offer this coverage as an add-on to their standard policy, while others may provide it as an optional endorsement. Before purchasing business interruption insurance, it is important to consider your specific needs and the duration of time that you would need to resume operations.

Business Interruption Insurance Coverage

Unlike the broad form comprehensive general liability coverage (often called a “broad form” policy), business interruption insurance pays out only if the loss caused by a peril covered under your commercial property policy is a direct cause of the disruption in your business. In addition, the damages must be from an insurable peril, such as fire or wind and hail damage, and not a non-insurable event like a pandemic.

If you have business interruption coverage, you can get back in operation as soon as your building is repaired or replaced and you are able to start generating profit again. Depending on your policy, the amount paid out is calculated based on past profits, ongoing operating expenses, and payroll. It may also cover additional expenses that you incur in the interim, such as rent for a temporary location, advertising to communicate the closure to customers, and more.

The duration of a period for which you are eligible to receive payments under your business interruption policy is set by the insurance company in consultation with you. This is known as a “period of restoration” and ends when the insurer determines that your business can begin generating profit again at its damaged location or another new location.

You can also purchase contingent business interruption coverage, which provides protection against losses from supply chain disruptions. This type of policy covers losses if your suppliers or vendors are forced to shut down due to the same kind of property damage that caused your business to close.

Coverage for property damage

The property damage coverage in general liability insurance protects businesses from paying for the cost to repair or replace customers’ property damaged by business-related incidents. This is important because it can be extremely expensive to cover the costs for these claims. Without this type of coverage, a small business could be forced to close its doors because it doesn’t have the financial resources to pay these costly judgments or settlements.

Some examples of property damage include:

Bodily injury, like a customer who slips and falls at the store or an employee accidentally breaks a client’s window while working at their home. Property damage can result in huge medical expenses and/or costly repair or replacement costs. General liability insurance covers these damages, up to a certain limit, so your business can continue operating.

Copyright infringement and reputational harm can also be covered under a general liability policy. For example, if a trucker is delivering cargo and accidentally uses words or phrases in advertising that are protected by copyright or trademark laws, this can cause a negative impact on the company’s reputation. A general liability policy can cover the cost to fix or restore a company’s reputation.

The cost of general liability insurance varies depending on your industry and the risks associated with your business. For instance, more dangerous industries such as construction and manufacturing typically pay a higher premium than less risky industries such as retail stores or restaurants. Additionally, higher coverage limits are generally needed for companies more likely to file a claim.

For the most competitive rates, work with a licensed insurance agent who can customize your commercial trucking insurance policies for your specific needs. At Liability Insurance Agency, we use specialized knowledge and data to help our clients find coverage that meets their specific requirements. Some clients even require their trucking company to carry General Liability or a Business Owner’s Policy (BOP) as part of their contract terms.

General Liability is an indispensable coverage for any company that’s in operation for any length of time. You can easily purchase it online with Liability Insurance Agency by entering some basic information about your business and selecting the type of coverage you need. Buying this insurance is easy and quick and provides peace of mind knowing your company is covered in the event of an accident.