Factors to Consider When Getting General Liability Insurance

Although you may want your business to run smoothly and without hitches, there are instances where unforeseen incidents and happenings can happen because you lose.  Incidences such as injuries, accidents, and damages can leave a huge dent in your businesses’ coffers.

Without insurance or a huge cash reserve, these liabilities may cause your business to close down indefinitely.

Fortunately, there are general liability insurance covers that come to the rescue of many businesses that fall into such predicaments. And although you can find many other business insurance policies on the market, general liability insurance is the basic coverage that every business owner should have.

However, it is important to note general liability insurance policies available on the market are not the same. To get the best general liability insurance cover, you need to consider the following points.

What does general liability insurance cover?

General liability insurance is also referred to as business liability insurance and normally covers your business from different forms of liability claims. The insurance covers claims for bodily harm, property damage, and damage to others as a result of slander, false advertisements, and more.

The general liability insurance helps pay for expenses related to medical expenses, legal fees as well as settlement costs as a result of unintended slander.

General liability insurance aims to safeguard the financial assets of your business from third-party claims. This mainly covers the financial losses that are caused to other people for which your business is responsible. Most general liability insurance policies on the market cover the following scenarios.

  • Body injuries. General liability insurance normally covers bodily injuries resulting from falls and slips that happen at your business premises. These injuries can happen to both your employees and customers.
  • Property damage. The general liability insurance cover also ensures that you are when your landlord sues you for causing damages to the building that houses your office. This may be as a result of your activities or a fire that started in your offices.
  • Copyright infringement. If you are sued for copying someone’s work, design, or model, general liability insurance has got your back.
  • Damage to reputation. General liability insurance coverage protects your business from statements that might harm an individual or an organization. This is through the media or the internet.

Why do you need general liability insurance?

Nearly all businesses face some risk. This is the case for both big and small businesses. However, it is important to note that smaller businesses do not have the money to face an unexpected expense.

For example, a single claim for injury can spell doom for your small business. This is no matter how many years you have spent trying to build your business.

If an employee or client suffers an injury while at your business premises and you are found liable, think of the amount of money that you would spend making a settlement. To avoid such a situation, it is advisable to take out a general liability insurance cover to protect you from such damages.

This is because the costs for defending your business, treating the injured, and possibly compensating them for the lost income can be so difficult for your business to bear.

Without enough financial backing or the right insurance cover, you may end up closing your small business in an attempt to make a settlement for the issue. General liability insurance protects your business from losses caused by unexpected happenings and damage to the property.

And although this cover is not a requirement in the law, it is necessary to have it when applying for large contracts. Conversely, the cover is still required by some landlords. This is especially when you run a risky business, whose activities would result in damage to property.

By getting general liability insurance, you will have peace of mind knowing that your business activities will not result in damages on the property that can cause you losses.

How much coverage do you need?

As you look for a general liability insurance cover, it is important to consider the level of coverage that is suitable for the exposure that your business has.

The choice of the coverage level is dependent upon the business that you are running, location, industry, and the potential risks that running your business poses on the property and the welfare of other people.

For example, the coverage level of a consultation firm will differ sharply from that of firm housing machinery.


General liability insurance is very important for any business. Therefore, it is advisable to choose a cover that suits your needs and the risks posed by your business activities.