Why General Liability Insurance Is Crucial for Small Businesses

Launching a small business takes hard work and resources, but one lawsuit or claim can undo it all. General liability insurance may provide your business with financial support when accidents occur.

The Importance of General Liability Insurance for Small Businesses

General liability insurance can be a practical financial safeguard for your business. A standard policy may help with the following:

• Covering third-party bodily injury—If a visitor is injured and your business is at fault, such as if they trip over equipment while on the premises, general liability insurance may help pay for their medical bills and your legal expenses.
• Handling third-party property damage claims—If your staff accidentally damages someone else’s property, your policy may help cover the repair or replacement costs.
• Paying for legal defense expenses—If an incident leads to a lawsuit, your insurance may pay your legal fees, settlements and court costs.
• Addressing personal and advertising injuries—General liability insurance may cover claims of libel, slander or copyright infringement.

Additionally, general liability insurance can be crucial for securing new business. Some landlords, vendors or clients may require proof of general liability coverage before signing agreements or starting projects.

How Much Coverage Does My Small Business Need?

Factors like your industry, location and client requirements usually determine how much general liability coverage a business needs. For example, a contractor working on-site may need higher limits than a home-based consultant. An insurance professional can help review your risks and recommend appropriate coverage.

Get Covered Today

Reach out to Ace Insurance Consultants for more guidance on general liability insurance. Our team can help you find policies that work for your business. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.