An Overview on General Liability Insurance for Small Business

Today, insurance is one of the most essential things to be considered for almost anything we buy or deal in. Owing to the income generating potential of small businesses, a majority of people are opting for starting one for earning a good sum. When it comes to starting a business, insurance is absolutely important to cover a wide range of risks. There are many types of small business that directly deal in people; such as massage therapy centers, personal trainers, and daycare. Have you every thought of what these businesses would do if they are sued by their customers for any matter? This is one reason where the concept of general liability insurance can come into the picture.

What is Liability Insurance for Small Business

Liability insurance is an insurance cover that protects small businesses from lawsuits and legal actions against the company taken by customers, visitors, or vendors. This insurance cover can be used when a customer or vendor files a lawsuit against your business for any bodily harm caused while being in your premises. Liability business insurance is typically sorted out in three types, namely for small businesses, for professionals, and product liability insurance. Out of the three, the most commonly used is the one for small businesses.

General Liability Insurance
This kind of insurance is also referred to as the Commercial General Liability (CGL) insurance. General liability insurance for small business is normally purchased in the standard business owner’s policy package; however, it can be obtained separately as well. It is very important for the company to be protected from legalities of physical injury claims, advertising claims, and even property damage. Most importantly, the cost has to considered while registering for the policy.

If there is a lawsuit filed by any individual against the firm, the insurance company will surely cover the prescribed expenses, but the business will have to pay for other miscellaneous expenses. Suppose the total general insurance cover is $1 million, and the client sues the business for $1.5 million, the firm will have to incur the remaining $500,000. So, it is very important to consider how much general liability insurance coverage you take. To prevent you paying the additional amounts, it is suggested that you choose the umbrella liability insurance which provides a complete protection.

Product Liability Insurance
If you are thinking about liability insurance for crafters, the product liability insurance is most appropriate. This is an insurance which is very necessary for carrying out a manufacturing business. It protects the small business from any lawsuits filed if its products cause bodily harm to or death of a customer. This insurance will also serve as a cover in case the customer files a lawsuit for manufacturing defective products.

Professional Liability Insurance
Professional liability insurance has to be considered by dentists, doctors, insurance agents, architects, and several similar professionals. It protects the businesses of these professionals from lawsuits due to negligence, omission, and errors. This insurance also has a provision for situations like slander, violation of contract, and libels. Similarly, liability insurance for daycare should be thought of for being protected against the lawsuits due to improper care of children. And same goes for liability insurance for massage therapy centers as well.

To get the best rates, it is suggested to compare quotes from various service providers and choose the most suitable one. When it comes to a contracting business, general contractor liability insurance helps protect from contractual liability and lawsuits filed. Note that liability insurance costs and premiums will be determined by the insurance companies considering factors such as the number of employees, clients, annual sales, etc.




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