Why do I need General Liability Insurance?
Congratulations! You started your first business and found a space to rent out, and the property management is asking for general liability coverage. And they might as well be speaking another language because you have no idea what general liability coverage is. Don’t worry we have your back. Plus, it’s what we do.
General Liability Basics
Okay, so the first thing to understand is why your landlord is asking for proof of a general liability policy. General liability is a coverage that protects a third party, if you say, accidentally burn the building down or leave the sink in your bathroom running flooding the whole building. As long as you have the limits to cover the damage, the general liability policy should kick in and pay for damages. And that is exactly the reason why your building owner wants you to have the coverage, to protect his investment. But if you are running a business, general liability is a smart decision even if you don’t have a landlord requiring it.
General liability also protects you the event of a lawsuit. While it is definitely not fun to think about spending time in court, it happens to business owners every day. Wondering why? Let’s say your Better Bunz bakery is off to a great start. You have orders flying in and customers out the door. In all the chaos, you accidentally mix a batch up using expired ingredients. Unfortunately, the mixup caused a few people to get sick before you caught the mistake. Now, you have upset customers with hospital bills that want you to pay. And of course you want to do the right thing, but you just don’t have the cash flow. Now, if you have a general liability policy, it will help cover the cost of the medical treatment your customers had to undergo. And then you need to hire some help with the bakery.
Do Small Businesses Need General Liability?
All business need commercial insurance. If you are providing a product or service to someone else, you should be carrying general liability insurance. Going into a lawsuit unprotected could bankrupt many small businesses. The great thing about liability insurance is that it also covers your employees. Imagine that you own Perfect Painting, and one of your employees accidentally gets over-spray on the customers brand new car when they are painting the fence. While accidents happen, it is not the perfect situation you were hoping for. Your liability policy can help repair the customers’ damaged vehicle and help you maintain your reputation.
Got more questions! Excellent, we are here to help. Our licensed experts will be happy to discuss your business and your particular insurance needs. When speaking to one of our friendly professionals, be sure to go over all aspects of your business. This will help them place you with the best company. It also helps them to make sure your policy has all the right coverages for what you do. For example, a plumber will need different coverage than a dog walker. We just want to get it right the first time around.