Why Do I need General Liability Insurance for my Company?

There are many things you need to do when you start your new business. One these things that sometimes gets forgotten is insurance. While running your business you are in contact with clients, employees, vendors, contractors, and others.

At any time someone can claim they were injured or sustained a loss; they may decide to sue you. This where having a good general liability insurance policy can help you. You need this insurance to protect what you worked so hard to build.

What Is General Liability Insurance?

General liability insurance provides you with the broadest protection available. It covers mishaps like property damage, bodily injury, damage to property, and contract responsibility among other things. That’s why every business needs to have general liability insurance to not just protect against lawsuit action but protect the assets of the business.

Many general liability insurance companies say that to best handle liability is to reduce risk as much as possible. Running your business in the most safest and productive way not only reduces risk but also ensures maximum profitability. Risk management services are available for small and large businesses. Your insurance company can provide this service which not only helps your business but also benefits the liability insurance company. Working together with risk management services through consultations, safety education, and also installation of safety equipment ensures the safest possible working environment.

How Does General Liability Insurance Protect Your Business?

Simply, your policy protects your company by providing the help you need to keep your business running when something unexpected happens. An example would be when a person is injured and it causes you to be sued.

What Costs are Covered with General Liability Insurance?

What you are getting for your monthly premium is protection and assistance when you are involved in a lawsuit from an injury or damages incurred at your business. These costs can include the hiring of an attorney for the defense and costs associated with the defense. The costs include attorney fees, witness fees, investigation fees, and court costs.

Other expenses are covered like court ordered judgments from lawsuits. It can include interest or medical expenses of the injured party in the result you lose your law suit.

Does the General Liability Insurance Cover More than Just the Business’s Owners?

The policy covers the owners of the company from damages but it can also cover other parties involved in the business. If the company is a partnership or joint venture, all the principles and their wives are covered if involved in the lawsuit for damages. As long as they are active participants in the business.