General liability insurance is a type of insurance policy that protects your business from another person or business’s claim of liability against your business. This may involve bodily injury along with associated medical expenses, or property damage along with associated repair cost and/or replacement of irreparable damage products or equipment.   If you have a small business, it would be in your best interest to have general liability insurance for small business as a means of protecting your financial interest. In this way, should you get sued for a claim over your liability, you will have backing of your insurance company for your protection.

General liability insurance will not protect you from everything. Nevertheless, it will however provide you coverage over the following areas or conditions:

  • Bodily Injury – when a client falls over something that is a property of the business or you the owner, then you are legally liable for the injury. Such along with medical claims are all parts of the coverage within a general liability policy.
  • Property Damage or Data Loss – should you accidentally spill any liquid that will cause damage or corruption of data on their computer devices, then you are essentially liable for the damage incurred. However, there will always be certain limit within the policy of liability within a general liability policy.
  • Personal Injury – any slander, banter, or libel against individuals, particularly that of clients will result in liability lawsuit claims involving personal injury. Again, however, there will be certain limits within the policy of liability within the general liability policy.

In a general liability insurance policy, if a third party gets hurt or injured at your place of business, you can be held liable to the costs associated with their injury as well as their loss of income as a result of that injury. Luckily for us, having a general liability insurance policy can help us to bounce back from such lawsuits. Aside from being provided with a lawyer by your insurance provider that will act in your defense against the liability lawsuit case filed against you, the bills or costs involving the settling of the case can be negotiated by both parties. Once compensation claims have been settled, the insured will be indemnified of any liability claims being made unto them.

As mentioned earlier, general liability insurance is not a complete protection coverage for your business. It is important to keep in mind that there will always be exclusions over the coverage of this insurance policy. One such involves negligence the results in your businesses’ liability. This factor is an exclusion clause for coverage under general liability insurance. However, having a Business Owner’s Policy and professional liability insurance can further expand the protection you get from your insurance.

Basically, if you have a Business Owner’s Policy insurance, you will have an enhanced insurance covering both general liability insurance and property insurance. A professional liability insurance on the other hand provides you with coverage against claims made by others over your profession or personal services that you provide. While getting such additional insurance policies may seem like an unnecessary expense on the part of your business, sometimes, the protection they provide your business can greatly help in preventing it from going bankrupt.

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