Have you ever wondered what the most basic type of insurance you can get for your business or where to start when looking at insurance? The answer to your question is General Business Liability Insurance. It is also called General Liability Insurance or Commercial General Business Liability. This type of insurance protects your company’s assets and pays for obligations incurred if someone gets hurt on your property or when there are property damages or injuries caused by you or your employees. It will help protect your and your finances in case of an injury or lawsuit.
General Liability covers the cost of your legal defense and any settlement or award should you be successfully sued. This includes compensatory damages, nonmonetary losses suffered by the injured party, and punitive damages. General Liability can protect you from liability as a tenant if you cause damage to a property that you rent, like by a fire or other covered loss. It can also cover claims of false or misleading advertising, including libel, slander, and copyright infringement.
Commercial General Business Liability can be bought on its own or as a part of Business Owner’s Policy (BOP). BOP bundles liability and property insurance into 1. If you have a BOP, check and see what your liability coverage is. You might have a lower coverage than you thought and may need to purchase additional coverage. If your company is at the higher end of the risk scale and already have general liability, you can get umbrella insurance, also known as excess insurance, which increases coverage limits. Outlined in your policy is the maximum amount that your insurance company will pay against a claim. For example, if you get sued for $250,000 in medical expenses for an injury that occurs onsite plus $150,000 in legal fees, but your coverage maxes out at $300,000, then you are responsible for the remaining $100,000.
Annual premiums for General Liability range from $750 – $2,000 depending on your line of business and coverage needs. For example, a contractor will need more coverage than a consultant. Do your industry research before you invest in any policy. Some client contracts require that your business has the appropriate coverage or umbrella insurance to perform work on their behalf. You also want to make sure you aren’t purchasing additional coverage that you don’t need or already have.
The world of insurance is vast and can become very confusing very quickly. Don’t worry about trying to figure out what you need and what you don’t by yourself. Call David Ison& Sons Insurance in Austin at 210-490-1494, and they will work with you to make sure you get the right coverage without cleaning out your wallet.