General liability insurance helps to protect one and his business from general liabilities such as property damage and bodily injuries. General liability insurance covers attorney fees and medical expenses from property damage and bodily damages even if you are held responsible for the damages.
What General Liability Insurance Covers?
General liability can cover the claims ay your business caused by
Third party property damage: if your company or employees are working at client’s property and some damage occurs due to some reason, then, general liability insurance will work for you. This GLI will cover the loss of the third party caused by your business. Repair cost is given by the insurance to the third party with your reference.
Third party bodily injury: if any of the customer in your workplace, business place of store gets slipped or injured, he may sue you. General liability covers the injury of the third party at our place. Third party injury caused by your business or connected to your business can be covered by general liability insurance.
Reputational harm: someone can sue your business for slander if something is said by you or your employee to the customer. Client or customer can sue you for reputational harm. This general liability insurance will cover the expenses of the reputational harm. Legal cost to defend you or your employees will be given by the insurance company to defend you.
Advertising Injury: any business can be sued for copyright issues. If company copies logo, formula or photograph then the business can be sued. General liability insurance will cover this loss.
What General Liability Doesn’t Cover?
It is not the fact the general liability insurance covers all kind of harms. Some of things are not covered by the GLI, which re mentioned here
- Work related injuries or medical of the employees are not covered by the general liability insurance. These claims can be covered by worker’s compensation allowance, so GLI does not cover these claims.
- Such damages to the business which can be covered by the commercial property insurance. For example, if your vehicles are insured by any other insurance party then general liability insurance will not give claim for the damages of the vehicles.
- Mistakes made by the company or employees which can be covered by the professional liability insurance. If it can be covered by any other kind of the insurance, then GLI will not cover the loss.
Need of General Liability Insurance
In business, different claims are demanded by the customers and clients to misbehave, loss, damage to property or damage to the body. these claims are very common. If a business does not have the general liability insurance, it would have to bear many expenses due to various claims. There is need for the businesses to get the general liability insurance. General liability will cover many losses such as bodily damage, property damage, advertising damage or reputational harm. These general liability insurances bear expense for the legal cases and for the damages. These insurances provide assistance to the business in case of any mishap or harm caused by the nature, client or employees.
In other cases, many of the business and government institutes demand insurance of property, employees and workers in order to get into the contract. These insurances are very necessary and contract will not be awarded if all the liabilities, property and workers are not insured. Here, general liability will help the business to get the contract.
Thus, general liability insurances help to bear the expenses of different kinds of losses and help the company to get the contract.
Cost of General Liability Insurance
There are several factors responsible for the general liability insurance. Type of business is the major factor for the cost of general liability insurance. If the business has much risk, then the cost of GLI will be high. In contrast, if the business has less risk, then cost of GLI will below. Different other factors are also responsible for the cost of GLI which are mentioned here as
- Location of the business or workplace
- Size of the work
- Years of experience of the company
- Condition of the building or workplace
- Details of the policy such as limits and deductions
- History of insurance claims
These factors are responsible for the cost of GLI.
Reliance of Clients on your business
Clients and businesses often want this insurance because it gives them peace of mind about your business. Clients know that their company's resources are largely safe because general liability insurance covers many recurring claims. Clients want to know that you will be able to complete the work you have agreed to and that you will not be hampered by a lawsuit or other covered incident.
Additionally, General Liability Insurance notifies your clients that you will be able to compensate them if you damage their property or harm someone while doing your job.
Benefits for small businesses
When signing up for general liability insurance, your business will be asked to provide information such as income, number of employees, and claims history, among other things. How easily you can get a quote and the price you pay for the premium depends on the degree of risk to your business and whether or not you have filed a claim in the past. Even if you have a history of claims or work in a high-risk field, Insure on can potentially help you find your company's insurance.
Who needs General Liability Insurance
There are different kinds of business running across the globe. All the businesses want to get insured. Some of the businesses that can be covered by general liability insurance are given here as
- Small business owner
- IT contractors
- Landscaping companies
- Janitorial services
- Real estate agents
- Construction companies
- Consulting companies
General liability insurance has several benefits. Although an LLC protects members from personal liability, it does not provide complete protection and your business can still be sued. General liability insurance helps to protect your small business from the financial impact of third party or property damage claims.