There’s a common misconception among small business owners that they will likely never face a lawsuit or a liability claim. The reality is that 40% of small businesses file a general liability or property insurance claim within their first 10 years of operation.
General liability insurance is perhaps the most important type of business coverage there is. It’s essential, regardless of what industry you operate in or how “low risk” your sector may be.
Below are five well-known ways general liability insurance may protect your small business.
1. Customer Slip-and-Fall Accidents
Accidents can happen anywhere, even in the most carefully maintained business. If a customer slips on a wet floor or trips over equipment, your business could be on the hook for their medical bills or even face a lawsuit.
General liability insurance may help cover expenses related to bodily injury claims, so you’re not left paying entirely out of pocket. When customizing your policy, pay close attention to coverage limits and what types of claims are included. That way, you can enjoy peace of mind in the event a customer slips on your property.
2. Property Damage Claims
Sometimes, a mistake on the job can damage someone else’s property. For example, a contractor might accidentally break a client’s window while working, or an employee could spill coffee on a client’s laptop.
General liability insurance may provide financial protection by covering certain property damage claims. You can use the policy to help preserve your business relationships and your reputation.
When obtaining quotes for your policy, find out both the total and per-incident limits. You want to make sure the policy provides enough coverage to reimburse the other party for valuable property.
3. Advertising and Reputational Harm
Businesses market themselves on multiple platforms. Unfortunately, a competitor may accuse you of copyright infringement, slander, or misleading advertising, even if you didn’t intentionally commit any of these acts. You have to push back against these claims, as they could cause lasting damage to your reputation.
Unfortunately, these disputes can be expensive to resolve. General liability insurance may step in to cover your legal fees and save you from the financial burden of hiring an attorney out of pocket.
4. Product Liability Issues
Do you sell products? If so, a general liability policy with product liability coverage is something you should strongly consider. If an item your business sells causes harm or damage, you could be on the receiving end of a product liability claim.
A general liability policy may offer protection in these situations. Common coverages include legal fees and money to handle any settlement or verdict, should you lose the case. Just be mindful that these policies have caps, and any rulings that exceed your payout limits could exhaust your coverage.
5. Legal Defense Costs
Even when claims against your business are unfounded, the legal costs can add up quickly. Attorney fees, court costs, and settlements can create a financial burden that threatens the future of your business. General liability insurance may assist with covering defense expenses and allow you to focus on running your business.
Need General Liability Insurance? Contact Hulett Insurance Today
Hulett Insurance offers business owners insurance that combines general liability coverage with other policy options. You can customize your plan to include necessary protections and reduce the risk of huge out-of-pocket expenses in the event of a claim.
Ready to get started? Contact us to obtain a free quote.
