There’s no doubt that insurance is generally not a business owner’s favorite topic of conversation. At the end of the day, your insurance policy is what you use whenever the worst-case scenario materializes. That’s the last thing that you want to think about as a business owner.
However, it’s so important to have a foolproof insurance plan laid out before that scenario ever materializes. That’s why you need to take the time to set up general liability insurance policies sooner rather than later.
In this article, we’ll talk through how commercial general liability insurance works so that you know how to set it up for your company.
What is General Liability Insurance?
The first thing to define is general liability.
Think of liability itself as any responsibility you have for damage to property or individuals that has been caused directly or indirectly by your business. For instance, consider the situation where a slippery floor at your place of business causes a customer to fall. In many cases, you could be liable for those medical bills during such an incident.
General liability insurance is what protects you in those situations that really can’t be foreseen. As a business owner, you can do all that you can mitigate and reduce the risk of these liability claims from being placed. But at the end of the day, you can’t control everything.
For those specific situations that slip through the cracks, general liability will save the day.
Liability Insurance is Often Required
Something else to consider when it comes to liability is that it is often required. Many local governments will require certain types of businesses to carry varying thresholds of liability insurance in order to achieve certifications and licensing to operate the business.
And even if it isn’t a hard and fast legal requirement, if your company works with many enterprise clients then it’s likely that their company’s business rules and procurement process may preclude them from working with you if you don’t have liability insurance.
Liability Insurance Proves ROI
Last but not least, one of the most common reasons why businesses don’t buy a general liability insurance policy right off the bat is that they’re afraid of the expense. And that’s a justifiable fear. Make no mistake, general liability insurance can be expensive.
But as a business owner, it’s hugely important to look at ROI. At the end of the day, if your general insurance policy program comes in and covers a million-dollar lawsuit just once, then the ROI that you’ve got is off the charts.
Read this article for more info on cost.
Insurance is a Must
There you have it. Equipped with this guide to general liability insurance, you should have a much better idea of how you really need an insurance policy in order to protect your business from any unfortunate situations that may come up.
For more business advice, then be sure to take some time to check out the rest of the website before you leave!