Businesses of all types buy general liability insurance (GLI) as a foundation for financial protection against lawsuits and other misfortunes. Understanding general liability insurance benefits are key to building an effective long-term safety net for your business.
What Is General Liability Insurance?
General liability insurance covers your business if it faces a lawsuit or causes harm to others. Unfortunate accidents, such as someone tripping on a wet surface or spilling a cup of coffee over themselves, are common in the workplace.
This Insurance will cover both physical and mental harm that may occur to people who visit your establishment or engage with your brand. It issues payouts to victims based on multiple factors, such as your coverage limit and deductible.
The coverage limit is the maximum amount the policy pays. Beyond the coverage limit, a victim can sue your business to recover the balance. The deductible is the amount of cash you have to pay upfront for the damage before the policy covers the rest.
What Is Covered by General Liability Commercial Insurance?
The two major perils that general liability commercial insurance covers are bodily injury and property damage. So, if someone gets hurt on your property, your insurance will pay for their medical bills and lost wages. If one of your employees damages someone’s property, your GLI will pay the repair costs.
Even if your company is sued for libel or slander, GLI pays the legal costs, protecting your valuable business assets.
Benefits of General Liability Insurance
Here are some of the various general liability insurance benefits that allow your business to withstand a substantial lawsuit:
- Pays Legal Costs – Legal costs for a small business lawsuit typically range from $3,000 to $150,000. However, GLI covers the attorney costs, settlements, and other court fees, saving your business from being financially devastated by one lawsuit.
- Demonstrates Business Maturity – Carrying GLI shows the public, business community, and your staff that your business takes responsibility for the safety and well-being of others.
- Establishes Credibility – Carrying liability insurance further demonstrates your business is well-established, thus giving a favorable impression to your clients and contractors. Some contractors only do business with vendors who carry some form of liability insurance.
- Maintains Business Continuity – Another benefit of GLI is that it pays for periods of business inactivity due to covered perils such as theft, vandalism, natural disasters, or fire.
- Covers Cybersecurity Breaches – After purchasing a standard GLI policy, you can add extensions for customized coverage, such as cyber liability insurance. Any business can get hacked and if it happens, plenty of confidential data can be compromised. Cyber liability insurance can pay for data remediation expenses and legal costs.
Understanding general liability insurance benefits will help you appreciate why you pay for coverage. Contact our reputable agents at Chambers & Company Insurance Brokers to learn more about general liability business insurance. We are ready to help you find the right insurance coverage for your business needs.