What Is General Liability Insurance and Does My Business Need It?

It's pretty much an established fact that we live in anthey are often tailor-made for low-risk businesses.
extremely litigious society these days. It's an absoluteYou may want to purchase general liability coverage
necessity that business owners look into Generalin its own right if you feel your business is at a higher
Liability Insurance to help protect themselves fromrisk of litigation.
lawsuits. The following is a brief overview of theAssessing Need
nature of general liability insurance and its coverage.Just as with your auto insurance, your coverage
Does my Business Need It?needs will vary from state to state. Look into the
You'd be surprised. Many business owners think that,average damage amount awarded in your state- if
since they don't own a restaurant, say, whereit's on the higher end, you will need higher coverage
someone could slip on a floor or break a tooth on anlimits. As with other insurance coverage, each policy
olive, for example, that they don't need coverage.will set limits on the amount owed by either the
What they don't realize is that any companyinsurer or the insured in a policy period. Consulting an
providing a service is at risk for a liability lawsuit. Anyexperienced insurance broker is a good idea to make
business entity dispensing advice, opinions or solutionssure you get sufficient coverage for your business.
could face this kind of litigation.Protecting your Business
What's Involved?Make sure to stay on top of any incidents that could
General liability insurance covers claims related tolead to litigation. Just as with your auto insurance,
negligence like bodily and personal injury, propertyyou should report an accident right away and make
damage, and advertising injury (also known as falsesure that you compile accurate documentation on the
advertising). It will also cover legal costs incurredincident and submit to your insurer.
during litigation, regardless of the validity of the claim.Also, make sure to train your employees to prepare
General liability does not cover incidents in whichagainst or respond to such incidents. Everything from
criminal intent is involved or litigation involving punitivebasic customer service to health and safety
damages.standards can be involved in a liability claim. Having a
General liability coverage is often offered towell-trained and prepped staff will supplement your
businesses in a package called a Business Owner'sinsurance coverage and go a long way towards
Policy or BOP. Make sure that you look closely intoprotecting your business and its interests.
the general liability coverage in these packages, as