Business owners’ – have you ever asked yourself any of the following questions:
“What in the world is General Liability Insurance?”
“What does it cover?”
Or, “Why do I need it?”
We’ll answer those questions and more.
We’ll start with “what is a general liability policy?” Simply put, General Liability insurance protects your business against claims by a third part of bodily injury or property damage.
Here are some examples:
- A customer or other visitor is injured while in your shop or office
- You or your employees make a mistake or neglects to do something they should have and it cause harm to a third party
- Your advertising/marketing causes damage to a third party
- Your business is accused of slander or libel
Every business owner should have General Liability insurance. Your business assets, including: cash, accounts receivable, materials, equipment and yes, even your personal assets – regardless if you structure your business as a LLC – may have to be liquated in the event someone wins a judgement against you.
That’s right, even if your business is set up as an LLC, you still could be held personally liable for damages. Here are a few examples of when your personal assets may be at risk:
- You personally guarantee a business loan
- You don’t keep your business and personal assets completely separate
- You do something that is illegal (knowingly or unknowingly)
Because we live in such a litigious society, the cost to defend you alone could bankrupt a business owner without the protection a General Liability policy offers, even if you’re not at fault. General Liability policies are one of the best ways to ensure that your business is able to recover in the event of covered loss.
Despite the name, General Liability insurance is not a cache all coverage. There things that aren’t covered by the General Liability. Click here to find out more.
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This information is provided to assist you in understanding the coverage being offered and does not modify the terms and conditions of any insurance policy, nor imply a claim is covered. Specific coverage terms vary by class of business. See your policy for full details.