When Does A Business Need General Liability Insurance?
What is General Liability Insurance?
General Liability insurance (also known as Commercial General Business Liability) protects a company’s assets and pays for obligations – medical costs, for example –incurred if someone gets hurt on your property or when there are property damages or injuries caused by you or your employees. Liability insurance also covers the cost of your legal defense and any settlement or award should you be successfully sued. Typically these include compensatory damages, nonmonetary losses suffered by the injured party, and punitive damages.
General liability insurance can also protect you against any liability as a tenant if you cause damage to a property that you rent, such as by fire or other covered loss.
Finally, it can also cover claims of false or misleading advertising, including libel, slander, and copyright infringement
An excerpt from SBA on what general liability actually is. SBA.gov
Generally, businesses only need insurance coverage to insure the liability their businesses are confronted with. Different classes of business will experience different liabilities. The question then becomes not whether the business needs its liability insured but what is liability, and how much of a safety net does your business need? Read the SBA’s article to get those answers in full.
Understanding Your Liability Coverage Needs
In short, it is the financial responsibility that a business carries in case someone gets injured at their business or property gets damaged due to employee negligence. Liability coverage can protect against the cost of legal fees, medical bills, or damages resulting from such incidents. Depending on the nature of the business, the risk involved can vary, and understanding your specific needs is crucial to maintaining proper coverage. Without the right protection, your business may face costly lawsuits or claims that could harm its financial stability. Therefore, evaluating the extent of your liability risk is essential. By securing the right coverage, you can safeguard your business and ensure long-term success.
The article in Find Law goes into the detail of what type of occurrences can happen and in different categories.