General liability: why getting it right matters for your small business

As a small business owner, it’s critical to have the right types of insurance in place to protect your company from surprise expenses that could slow down or even derail your success.

Most small businesses are required to carry general liability insurance. However, merely having the minimum coverage is not enough. It’s a good idea to review your policy at least once a year to ensure it addresses your evolving needs and potential gaps. From changes in your business operations to emerging industry risks, your business could be exposed to vulnerabilities your current policy doesn’t cover.?

In this Q&A, we explore insights about what general liability covers, the gaps you will need to consider, features to consider when buying business insurance and how to choose the best company.?

If you are ready to start your quote today, visit our website.

What does general liability insurance cover?

General Liability insurance protects businesses from financial losses resulting from third-party claims of bodily injury, property damage and personal and advertising injury. Put more simply, a “third party” is someone who isn’t an employee of the business, and “claims” refers to any demands for compensation from the business, which can include medical expenses and costly lawsuits.

• Example 1: You own a convenience store, and a shopper has a serious injury after slipping on a spilled slushie drink. (Bodily injury)
• Example 2: You’re a contractor and accidentally trash expensive artwork in your client’s home through a power tool mishap. (Property damage)
• Example 3: You create a brilliant marketing slogan, and another company claims you stole it from them. (Advertising injury)

What will a general liability policy not cover??

Injuries or damages caused by your company vehicles

• You’ll need commercial auto to cover these claims – which also include injuries or damages caused by employees who drive their own cars on the job.

Injuries to your employees?

• You’ll need workers’ compensation to cover illnesses and injuries that happen to your employees on the job. (It also helps shield you from many employee lawsuits).

Damage to your own property

• You’ll need property coverage to repair or replace damaged, lost or stolen property, such as valuable inventory destroyed in a fire or by a sprinkler system.

What features should you consider when buying general liability insurance?

• You should ensure you haven’t just purchased the bare minimum of coverage at the lowest rate. Many new business owners think they have adequate coverage because they carry enough to fulfill a contract requirement from a landlord or other partner. They may find out too late that they don’t have the right levels of coverage for their specific risks – or are missing other valuable protections (such as property, commercial auto or worker’s comp).
• Business owners can usually save money by purchasing general liability and property together in a money-saving Business Owner’s Policy.

How do you choose the best company?

We recommend working with an insurance agency that looks out for the best interests of small business owners and will:

• Recommend the right insurance products and coverage levels to safeguard you from surprise expenses that could bankrupt a growing company
• Compare quotes from more than one insurance carrier so you can find the best combination of coverage and price for your company’s needs

For more information and to receive a quote today, visit: choosemylo.com/business/product-commercial-general-liability?