Most small businesses looking to establish themselves in the industry must be aware of different risks. Businesses can be sued at any moment. That’s why it’s so important to have protection in place. Here’s a look at the benefits of small business liability insurance.
General Liability Insurance: A Must-Have for Small Businesses
General liability insurance covers your business against common risks, such as somebody getting injured on your property, advertising disputes, or customer property damage. It protects small businesses that may be operating on a limited budget from expensive legal fees while handling lawsuits. The policy also helps these businesses secure important leases and contracts.
Do Small Businesses Need General Liability Insurance?
The majority of small businesses need general liability insurance if they rent or own commercial space. As previously noted, buying small business liability insurance can help you qualify for different contracts. If you work with different clients, adding commercial general liability insurance helps protect the financial structure of your business if a customer sues you. It’s recommended that you purchase coverage immediately after opening your business.
What Does Commercial Liability Insurance Cover?
Small business liability insurance covers your business against common third-party liability claims. The policy covers your legal fees if a client sues you over property damage or a bodily injury. The coverage includes the entire process from hiring a lawyer to handling judgments and settlements. The CGL coverage is an asset if your business interacts with the public, handles sensitive customer property, and owns commercial property.
Is Owning General Liability Insurance Mandatory?
Purchasing liability insurance is your prerogative as a business owner. Some states may mandate liability coverage for specific industries. While it may not be a legal requirement, your landlord or lender may require you to purchase coverage. A client may ask you to show a Certificate of Insurance before approving you for a contract. A Certificate of Insurance serves as proof of your general liability insurance coverage. The document helps businesses prove that they can handle any potential lawsuits. The document also assures your client or lender that they will not be responsible for covering the legal fees if your business is sued.
Average Price of General Liability Insurance
Small business liability insurance costs depend on several factors, including the amount of coverage your business needs, the location, the number of employees, and the type of business. In most cases, businesses can find policies that cost under $50 per month.
Is General Liability Insurance for Necessary for My Business?
General liability insurance protects your business by covering your legal fees in multiple situations. Perhaps a customer is suing you because they suffered an injury on your property, or they believe one of your products caused them harm. Maybe a contractor accuses your business of slander or libel. Small business liability insurance covers you in a wide variety of situations.
Consult with Kneller Insurance Agency
If your business is located in a high-risk neighborhood, you can raise your liability coverage limits or consider adding umbrella insurance for an extra layer of protection. If you have any questions regarding liability coverage, contact the team here at Kneller Insurance Agency today.
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