Insurance
A Deep Dive Into Business Owners Policy Exclusions to Avoid Surprises
January 27, 2025
| April 10, 2023
Author: Jason MorrisonEdited by: Jason Morrison and Reviewed: Jason Morrison
General liability insurance, also known as business liability insurance, offers general insurance protection for small businesses of all types. Many responsible business owners ask the questions, “What is general liability business insurance?” and “What does general liability cover?”
Getting general liability insurance can protect your business in more ways than one, and the ways in which it can protect your business may surprise you.
You may not even realize you need general liability insurance until you hit a snag in your business operations, and often, that can be too late. We’ll discuss the costs, what it covers, and who needs it in this piece. Read on to ensure that you have the right insurance coverage for your situation.
General liability insurance protects your business from claims that arise when your company is responsible for certain damages. It can cover medical expenses and attorney fees for a variety of legal issues that can arise, such as bodily injury, property damage, libel, and slander.
What does general liability cover, also called commercial general liability insurance cover, exactly? In addition to property damage and physical injuries, general liability insurance can also cover defense costs and personal and advertising injuries.
You may also wonder, “Is general liability insurance required by law?”
No, the law doesn’t generally require you to carry general liability insurance. However, a client or other entity (including landlords) may require you to carry this coverage before you get the job or before you rent from them.
It’s impossible to give you an exact figure for your particular business because it depends on your specific business needs, including the type of work you do, your location, the number of employees you employ, the size of your business, your industry type and the amount of coverage you need.
However, in general, you can safely plan to spend between $40-$100 per month. Talk with a local insurance agent for the most accurate information about the cost of coverage for your particular business and situation.
Take a look at some examples of how general liability insurance might help you in several circumstances. General liability insurance covers the following, and we’ve also included some general liability insurance examples:
A number of small businesses may want to consider general liability insurance. Generally, you need general liability insurance if you:
If any of these activities sound like something your business does regularly, consider getting general liability insurance.
General liability insurance doesn’t cover every type of loss that your business may incur. For example, general liability insurance will not cover you in certain situations, such as in the case of employee injuries, intentional acts, professional mistakes, etc. It’s a good idea to consider describing your business to your insurance company to ensure that you obtain the right type of insurance for your situation. Shop around to compare rates, terms, and benefits and reassess every year. The Small Business Administration is a good resource to check in with.
Ready to make decisions about your business insurance coverage? After understanding general liability insurance fundamentals, explore why having business insurance is crucial.
Insurance
January 27, 2025
Insurance
January 23, 2025
Insurance