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General Liability Insurance | Overview
General Liability Insurance is essential for protecting your business and the assets you own. In most states, General Liability policies are not required to be purchased in order for a business to continue to exist. It’s like going out in the sunlight without sunscreen. It’s possible to do it, but eventually, you will get sunburned. There is no way to prevent all possible problems that could occur in the day-to-day operation of a business.
Customers won’t allow you to start a project if you are not in the service industry. It is a good idea to have it on hand at the time that you give your estimate. Your competitors might not have this coverage, so you should be able to get a head start. General Liability Insurance is required by landlords if they lease property in which your business is situated. This policy provides protection against losses in the event of an accident.
How much does general insurance cost? The cost of general liability insurance will vary depending on how your business operates and the policy limits. For this policy, small businesses typically pay around $40 per month.
How much does general liability Insurance cost ?
No matter what policy limits you have, the median cost to insure general liability insurance is $45 per calendar month (or $540 annually). The median cost is a more accurate estimation of what your business will pay than the average cost for business insurance. It excludes high or low premiums. 48 percent of small business owners pay between $300-$600 annually for their insurance policies. 17% pay no more than $300. These figures are based on an analysis of thousands upon thousands of insurance policies that Insureon small-business customers purchased.
What does General Liability Insurance cover?
General Liability Insurance protects businesses from claims by clients and third parties. It covers any damage caused by employees or businesses. Businesses don’t expose their clients or third parties to major risks. Business owners are also conscious of safety and their reputation.
1. Harm to reputation
Protect your business from false arrest, malicious prosecution, and libel.
For Example, A competitor makes some comments in the local newspaper. This is libel. They sue you for coverage.
2. Responsible for any damage to the premises you have rented.
Protect your business from claims for damage you cause to the premises rented by a landlord.
For Example, A person in your office, smokes and then throws a lit cigar in the recycling bin, causing the place to catch fire.
3. Medical payments
If someone is hurt on your premises or requires medical treatment, you can help to pay for their medical expenses.
For Example, A customer spills a lot of soda by the fountain soda at a convenience store. A customer walks in and slips on the ice, breaking her arm.
How can limits impact general liability insurance costs?
Car insurance that covers wide range of damage will cost you more. The same applies to liability insurance for businesses. Expect to pay more for higher coverage if you choose a policy.
For small businesses, general liability insurance coverage up to $1 million/$2 million is the best option. This includes:
- $1 Million per-occurrence limits. Insurers will pay up $1 million for any one claim.
- $2 Million aggregate limit. The insurer will pay up to $2 million to cover claims.
Insureon customers make the majority (92%) of those who purchase policies with $1 million or $2 million limits. Our next most requested policy is the one with $2,000,000 / $4 Million limits.
It all depends on what your business needs are. You need coverage that will cover a lawsuit but not more than you actually need.
What General Liability Insurance Does not Covered
There are certain classic situations that cannot be covered by general insurance coverage. These cases require more specialized coverage.
1. Injuries to employees
Workers’ comp is insurance that you need to protect your employees from being injured on the job or in company-sponsored activities. The risk of getting sued increases if you fail to carry a worker’s compensation policy. Make sure you protect your rights by speaking with a lawyer. If your working place is located in Lexington, you may be able to benefit from the assistance of a Lexington worker’s compensation attorney.
For Example, Your company organizes a function at the local Go-Kart Track. Two of the salesmen are involved in a race. One salesman cuts the other off, and he is hurt. However, this is not covered by your General Liability Insurance. Workers’ compensation would cover it.
2. Making professional mistakes
Insurance that covers errors and omissions, or professional liability insurance.
For Example, General liability insurance will not cover a professional’s mistake. However, professional liability will. After you have given your professional opinion about the ground, and six months later, it is discovered that the swamp had settled on top of the house.
3. Auto-related coverage
General Liability Insurance doesn’t cover you for auto accidents. For your business vehicles and delivery vehicles, you need an auto policy.
Intentional acts: General Liability Insurance is not able to cover injuries or damages caused by intentional acts.
For Example, An employee punches a customer in the face. If they sue, your business liability insurance will not cover the damages.