Commercial Insurance Policy: What Is General Liability Insurance?
General liability insurance is the most essential type of business insurance you can have, regardless of the size of your company. A policy protects your business if your business is found to be at fault in an incident and someone is injured on the premises, an event that happens more often than you’d think.
Commercial liability insurance covers costs if a claim is filed against your business for bodily injury or property and advertising damage. If you do not have general liability insurance you would have to pay for your own defense. If your business or services are found to be negligent, professional liability insurance, not commercial general liability insurance, would cover your business.
If you run a business in a particularly risky industry, it’s important that you have general liability insurance. The riskier your business is, the more expensive it will be, but you’ll likely need the added protection.
Your location will also affect your insurance rate, depending on how populated the area is, which raises the chances of bodily injury claims being filed. The more people you hire, the more you’ll pay, and your annual revenue will also affect the rate you pay for general liability insurance.
Keep in mind that if you use vehicles to transport people, goods or employees, you’ll need additional insurance (business auto insurance) to protect you in the event that someone is hurt or if your work-related vehicle breaks down or is involved in an accident. Endorsements are coverages you can add onto your commercial general liability insurance to suit your business needs and exposures. Businesses prone to more risk and that need more coverage than a general liability policy provides include, but are not limited to: general contractors, IT contractors, advertising/marketing, real estate agents, retail shops, restaurants and more.
Also note that if an employee is injured, the event would not be covered by general liability insurance. It would be covered by workers’ compensation insurance. Accidents and injuries resulting from the use of company automobiles would be covered under commercial auto insurance not general liability insurance.
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