TUESDAY, DECEMBER 15, 2020
Frequently Asked Questions About General Liability Insurance
If you are a business owner, then you probably know that you have to protect your company, employees, clients and others against any risks you might pose them. These liabilities could cost you a lot of money in worst-case scenarios. You therefore must be ready for any eventuality. To do so, you will need general liability insurance. It’s a benefit that no responsible business owner can be without.
Consider a few of the questions that most people have about general liability insurance. The better you understand it, the better you will be able to tailor your plan to your advantage.
Am I required to buy general liability insurance?
General liability insurance helps you compensate others (who don’t work for your business) when they sustain injuries, property damage or other personal losses that are your fault. In these situations, lawsuits might arise, and you often must compensate the affected party for their losses.
This is an important plan to have, and in some cases you might be required to buy it. This coverage requirement varies by industry and by local regulation. If you do have to buy a plan, however, then you must carry the terms required of you.
How much liability insurance do I need?
All businesses face different liabilities. You want to use your liability policy to both cover the costs of common losses in your industry and protect your own financial assets from significant losses. Many liability policies offer a minimum of $1 million in protection. However, you have the option to increase your coverage and adapt it to your needs.
What businesses need general liability coverage?
General liability insurance is not restricted by industry. It is a benefit that every business, no matter its shape, size or purpose should carry. There are injury risks in every company from auto repair shops to clothing stores. Professionals like lawyers, graphic designers, artists and other contractors need these benefits, because even their professional mistakes might cause harm. Even self-employed individuals need this coverage. After all, a lawsuit from a dissatisfied customer could be an astronomical cost.
Can I buy liability insurance as part of a BOP?
Small business owners often find their solutions for business insurance in Business Owners Policies, also called BOPs. A BOP contains tailored coverage designed to meet your coverage and budgetary needs within a small operation. Usually, it contains several benefits, including general liability coverage, within one package. However, you can still tailor the benefits to your company’s advantage.
A BOP is a practical benefit that no one can do without. However, even if you don’t qualify for a policy, you can still find an affordable general liability policy with the help of your agent. Our expert team is happy to work with you to determine how best to get this coverage.