General liability insurance is an essential coverage type for business owners. It could be referred to as the ‘backbone’ of business.
General Liability Insurance
General liability insurance is an important part of a business, and every hardworking business owner must understand the protection that general liability insurance covers.
What is General Liability Insurance?
Also known as business liability insurance, it protects you and your business and helps cover claims that your business caused bodily injury or property damage.
This is defined as insurance protection for third-party property damage or personal or advertising injuries allegedly caused by you or an employee. Commercial general liability (CGL) insurance is a form of comprehensive insurance that offers coverage in case of damage or injury caused by a business’s operations, products, or on its premises.
It is advisable for all businesses to have this means of indemnity. It acts as security from damages, losses, and penalties that you may face.
What General Liability Insurance Does Not Cover
Although general liability insurance covers a lot of damage, there are still some that it does not cover:
Breach of your confidential personal information
Damage or injuries you intentionally caused
Your personal vehicle or boat
What does General Liability Insurance cover
This has been a great way to cover premium claims. If you don’t have coverage, you’d have to pay for these costs out of your pocket.
Third-Party Property Damage
If you or your employee cause damage to the property of a third party, they may file a property damage claim. In this instance, if you damaged the windows of a third party, this would cover the cost of the damaged property.
Third-Party Bodily Injury
There is a possibility that a customer, vendor, or visitor might get injured on your business property. In a situation like that, your business would be held responsible. A delivery man could slip and fall on slippery ground, which could cause bodily injuries. They would probably sue you and your business. This will help cover all the legal fees.
Defense Cost
There might be cases where your opponent has heard something from you or your colleagues that he finds injurious, your general liability will help protect you from claims of slander or liber which cover the cost of hiring a lawyer, court fees, investigations, gathering facts, filing legal paperwork, and other related costs. But this factor does not cover all businesses.
Personal and Advertising Injuries
These damages are classic breaches that affect the person’s personal rights Examples include libel, slander, and copyright infringements. It helps protect the policyholder from accusations that could damage his image.
Note: For any injuries related to your employees, you will not compensate you for that.
Average Cost of Commercial General Liability Insurance
The cost is based on your specific business needs and some other factors. Every business has its own risk and it varies differently.
Factors That Affect the Cost of General Liability Insurance.
Factors that influence the cost include:
- Type of work
- Location
- Number of employees
- Years of experience
On average, it costs $40–$45 per month, or about $500–$550 annually. Most policyholders can expect to pay a premium between $30 and $60 per month for their general liability insurance coverage.
How to Get General Liability Insurance
Here are the steps:
- Gather your information and documents.
- Assess your risks.
- Find a reputable, licensed agent.
- Shop around
- Reassess every year.
The Best Companies That Offer General Liability Insurance in 2023
There are companies that offer excellent customer service and their general liability policy has great limits that modify the policy of business-specific companies. A certificate of insurance (COI) is granted in most companies.
The Hartford
The company is one of the best companies for overall general Liability. They have 24/7 call accessibility. Hartford also offers instant COI and has a financial rating of A+ (superior). It’s quick and easy! With over 200 years of experience, it’s no wonder that more than 1,000,000 small business owners trust Hartford with their insurance needs.
Chubb
This is considered one of the best for marketing businesses. They don’t grant instant COI and have a financial rating of A++ (superior). Businesses are constantly changing, and the marketplace is unpredictable. While anticipating the loss that can occur in the future from liability, Chubb will protect you all the way.
Nationwide
This is very good for agro-businesses. They don’t grant instant COI and have a financial rating of A+ (superior). Nationwide has a process quote online and is available 24 hours a day for service.
Progressive
If you have a delivery business, consider using Progressive as they offer some of the best features for your business. They grant instant COI and have a financial rating of A (excellent). With over 50 years of experience, Progressive Commercial has the expertise to help you design a business insurance policy that protects the unique needs of your small business.
Thimble
This company offer very fast quotes, grant instant COI, and have a financial rating of A- to A (excellent). You are available online or through their app.
Do I need General Liability Insurance if I have an LLC?
Becoming a part of a Limited liability company is an important part of securing your assets and lessening your liability, your personal assets can only be protected from lawsuits and its protection is limited.
Structuring your business as a limited liability company, or LLC, offers some protection for your personal assets. But you should still have it to protect your business assets in case a customer or another third party files a legal claim against you.
Frequently Asked Questions
What does General Liability Insurance Cover?
In short, it covers the cost to investigate claims, defend against third-party lawsuits, and help protect you and your business over claims related to bodily injuries or damaged properties.
How much is General Liability Insurance?
The cost depends on various factors:
- Type of work
- Years of Experience
- Size of the company
- Your location
Is doing business without General Liability insurance illegal?
It depends mainly on where your business is located. While there are no federal laws requiring small businesses and independent contractors to obtain insurance coverage, your city may have specific laws in place that require it.
What does general liability insurance not cover?
It does not cover employee injuries, auto accidents, workmanship, intentional acts, or professional mistakes.
How much should small business insurance cost?
It should cost as little as possible while still affording you the full protection of a standard General Liability policy! The actual cost of your coverage will vary depending on a variety of factors: the liability limits you select, how high- or low-risk your work is considered by insurers, and the duration of your policy among them.
