Benefits of Commercial General Liability Insurance You Must Know
When you own a business, you have to be able to anticipate various risks ahead of time and plan accordingly. Business ownership also means you are personally liable for any damages that your business may cause or that are caused by your business operations. You need to think about both personal and business liability when it comes to setting up shop.
If you’re thinking of opening a new small business or expanding an existing one, commercial general liability insurance may be something you should look into. This type of insurance can protect your business from losses related to negligence and other risks. Read on to learn more about CG liability insurance and how it can help your small business succeed in today’s competitive market.
What is Commercial General Liability Insurance?
Commercial general liability insurance is a business liability insurance that helps protect your company’s assets by covering the costs to defend against and settle lawsuits related to injuries or property damage caused by your business operations. CG liability policies also protect against claims of product defects, errors and omissions, and other risks that may arise while doing business. CG liability insurance is an important type of business insurance that can help you manage the risks of operating a small business. To help you better understand the benefits of commercial general liability insurance, here are a few scenarios where this type of insurance can come in handy. – If your business has a slip-and-fall claim and is held legally responsible for damages resulting from the fall, your commercial general liability coverage will help you cover the cost of defense, settlement or award payments, and any injury-related medical bills. – If your customer’s property is damaged and they hold you legally liable, your CG liability coverage can help you cover the expenses related to defending the claim and making the necessary repairs to the damaged property. – If your business makes a product that causes damage or injury to a third party, your CG liability coverage can help you cover the costs of defending the lawsuit.
Protect Your Assets
If you are sued for damages related to your business, you could be held responsible for paying the injured party’s costs out of your pocket. Depending on the circumstances, you may be responsible for paying any expenses related to the lawsuit, including the other party’s legal fees, settlement, award amounts, and any related medical expenses. Your business assets may be at risk if you do not have sufficient insurance coverage. Depending on your business and the state in which you are based, you may need to obtain a commercial general liability insurance policy. This type of policy is standard for most small business owners. Commercial general liability coverage protects your business’ assets by covering the cost of defending against lawsuits and paying any damages. Landlords and suppliers often require this insurance, so you may even have this coverage as a condition of doing business with them.
Protect Employees and Contractors
Employees and contractors working on your business premises must often have general liability insurance coverage. If they do not have this insurance, they may not be allowed to enter the premises. This is because they could risk your business and its assets. Your commercial liability coverage can help protect your employees and contractors from potential litigation that may arise during their work. If someone is injured on your business premises or their property is damaged, your employees’ and contractors’ general liability insurance can help cover their medical bills, any damages, and other expenses related to the injury or damage. Beware, though, that your employees’ and contractors’ general liability coverage only extends to the business premises. If an accident occurs anywhere else, your business may not be covered. This is why it is important to ensure your employees and contractors have the proper insurance coverage.
Cover Business-related Risk
Another reason to have commercial general liability insurance is to cover risks related to your business. This coverage is designed to help you manage and transfer certain types of risk by paying claims if certain risks occur. Certain types of business risks that can be covered with commercial general liability insurance include building and property coverage, employee dishonesty, and coverage for pollution-related claims. Depending on your business type, you may need additional coverage to protect your business from various potential risks. For example, you may be at risk of customer property damage claims if you run a retail business. Similarly, your business may be susceptible to food contamination claims if you run a restaurant. If you run a construction company, you may face various risks, including worker compensation and faulty work claims.
Be Responsible for Your Employees’ Actions
If one of your employees causes injury or damages another party’s property, your commercial general liability insurance can help you cover the cost of the lawsuit and defend against it. This is especially important if you have employees whose duties may pose a high level of risk. General liability insurance is usually included in an employer’s workers’ compensation policy. This coverage protects your business from claims where an employee causes injury or damage to someone else’s property. It also protects your employees by covering any medical costs related to the injury and providing workers’ compensation benefits. If you do not have workers’ compensation insurance, you could be held legally liable for your employee’s actions and resulting injuries or damages. This could put your business’ assets at risk.
Final Take
A commercial general liability insurance policy can help protect your business against property damage and bodily injury claims. While this type of insurance is standard for most small business owners, it is important to ensure you purchase enough coverage to meet your unique risk needs. You can also protect your business by choosing the right coverage and policy types. Ensure you have enough liability coverage and other types of insurance such as workers’ compensation, property, and business interruption insurance. If you are looking to open a small business, commercial general liability insurance is something you should consider. It can help protect your business against the risk of being sued for damages related to bodily injury or property damage.
