Most small business owners know they need General Liability insurance, but aren’t entirely sure what this type of insurance covers. Here are four ways you are protected by general liability insurance.
- Bodily Injury. This coverage protects you if someone is physically injured on your property.
- Personal Injury. Additionally, general liability insurance covers you if you or one of your employees is accused of slander or libel, or causing someone emotional distress.
- Damage to Others’ Properties. This coverage protects you if you damage someone else’s property — for example, if you rent an office or warehouse and damage the property.
- False or Misleading Advertising. General liability insurance also protects you if you are sued for intentionally misrepresenting your goods or services.
General Liability Insurance: How Does it Work?
According to the U.S. Small Business Administration, a general liability insurance policy specifies the maximum amount your insurer will pay if you are sued for liability. For example, assume you purchase a $100,000 general business liability insurance policy and a customer sues your business after being injured on your premises.
If the customer sues you for $100,000 (the medical costs he incurred as a result of the injury) and tacks on $50,000 to the lawsuit to cover his legal fees, you would be responsible for paying the additional $50,000 settlement out of your own pocket. It’s important to contemplate the right amount of coverage, the SBA says. The type of business you operate and the perceived risks associated with it should guide your decision. An experienced insurance broker can help you secure a policy with sufficient coverage.
About Newman Crane & Associates Insurance
Deciding what coverages you need and what limits and deductibles make the most sense can be tricky. Since 1965, Newman Crane & Associates Insurance has been helping Central Floridians make sense of their options and make the smartest choices for their circumstances. We encourage you to contact our friendly, experienced, and capable team today. Call us at (407) 859-3691 for a consultation.