General liability insurance (GL) provides coverage for business owners when claims arise in the course of doing business. Many types of businesses can experience claims that may involve property damage, bodily injury, personal injury and other types of claims. The protection available through GL insurance can provide real peace of mind to contractors and small business owners.
What does general liability insurance cover?
Any company needs to avoid what can be a catastrophic expense that a claim or lawsuit can bring. Contractors and small business owners’ livelihoods depend on uninterrupted operations and few unexpected issues. General liability insurance protects you in case of accidents involving your customers that can result in an expensive lawsuit. In addition, you may do business with individuals or other companies who require that you carry some level of general liability coverage to do business with them.
Some of the coverage options general liability insurance provides for you and your company:
- Bodily injury or property damage coverage claims against your products, services or operations.
- Claims against products your company manufactures, sells or distributes.
- Claims of faulty services or work after completion of those services or work.
- Claims of damage to non-owned buildings, structures or property that you rent for business purposes.
General liability insurance does not cover:
- Employee injuries. (In most cases workers compensation insurance covers employee injury while performing their job duties.)
- Owned commercial property. (A business owners policy, or BOP, protects business equipment and goods.)
- Professional mistakes in providing a service or advice. (Professional liability insurance would cover claims such as this.)
- Commercial vehicles. (A commercial auto insurance policy covers business vehicles.)
Contractors can purchase a stand-alone general liability policy, or combine general liability with additional coverage available in a Business Owners Policy (BOP). If you need coverage for personal property used in your business operations, for a commercial garage or storage building, for payroll insurance, etc. – a Business Owners Policy includes it all.
Can I afford general liability insurance?
Many factors are considered in general liability insurance cost. Some of these include the type of business you own, the location where you operate, how many employees you have (if any), and your company’s risk exposure. Risk exposure is defined as your likelihood of being sued. In general, a company that provides several types of services has a higher level of risk exposure than one that provides just one type of service.
Get answers to all of your questions about general liability insurance and business owner policies by talking with one of our agents. We’ll be glad to discuss all policy and pricing options with you. Give us a call or submit a quote request today!