The Importance of General Liability Insurance for Small Business Owners
Small business owners have a lot on their plates, from managing finances to hiring employees to maintaining customer relationships. But one thing that should never be overlooked is ensuring the business is protected with general liability insurance.
Here’s why:
What is General Liability Insurance?
General liability insurance protects businesses from third-party claims of bodily injury, property damage, and personal injury. It covers the costs of legal defense, settlements, and judgments if a claim is made against the business.
What Does General Liability Insurance Cover?
General liability insurance covers a wide range of potential claims, including slip and fall accidents, property damage caused by the business, and customer injuries. It can also cover claims of libel, slander, and copyright infringement.
Why is General Liability Insurance Important for Small Business Owners?
Small business owners may be tempted to skip out on general liability insurance to save money, but this can be a costly mistake if a claim is made against the business. Without this coverage, business owners may be personally liable for the costs of legal defense, judgments, and settlements.
In addition, many business contracts require general liability insurance as a condition of doing business. Without this coverage, small business owners may miss out on big contracts and new business opportunities.
Examples of General Liability Insurance Claims
Here are a few real-life examples of general liability insurance claims:
– A customer at a grocery store slips on a wet floor and breaks their leg. The business is sued for medical expenses and lost wages.
– A contractor accidentally damages a customer’s property during a renovation project. The business is sued for the cost of repairs.
– A business owner posts a negative review about a competitor on social media. The competitor sues for defamation.
In each of these cases, general liability insurance would have covered the costs of legal defense and any settlements or judgments made against the business.
Conclusion
General liability insurance is an essential protection for small business owners. It covers the costs of legal defense, settlements, and judgments if a claim is made against the business. Without this coverage, small business owners may be personally liable for the costs of a claim, and they may miss out on valuable business opportunities. Be sure to speak with an insurance professional to ensure your business is properly protected.
