As a small business owner, you may wonder how to protect your business and its assets. You also may have heard about general liability insurance, but do you know exactly what it covers or how it can protect your business? Even if you’re a small business owner with only one local shop, you and your business can benefit from general liability insurance coverage.
What Is General Liability Insurance?
Also known as business liability insurance, general liability insurance is an insurance policy that protects you and your business from general claims involving bodily injury and damage to your business property.
While this is a basic definition of what is covered under a plan, general liability insurance may cover anything from medical expenses incurred from bodily injuries to attorney fees and costs related to any injury your business may be responsible for.
General liability insurance may also cover your business if your landlord holds you liable for certain damages to their property.
Does Texas Require Businesses to Carry General Liability Insurance?
According to the Texas Department of Insurance, the state is one of the few that does not require all businesses to carry general liability insurance, including workers’ compensation insurance. However, some types of businesses are required to carry the bare minimum of general liability insurance.
For example, according to Texas Administrative Code, electrical contracting companies must “maintain at least the minimum general liability insurance coverages at all times to satisfy proof of financial responsibility.”
In addition to this rule, if your business has contracts with the federal government, Texas law requires that your company provide workers’ compensation coverage for each employee.
What Does General Liability Insurance Not Cover?
Contrary to what its name suggests, general liability insurance does not cover all damage to your business. Some things that are not covered by general liability insurance include:
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Employee Injuries: If your employees get injured while they’re on the job, general liability insurance doesn’t cover it
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Punitive Damages: If you (or one of your employees) have been sued for punitive damages, your general liability insurance will not cover the costs you’ll have to pay
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Auto Accidents: General liability insurance doesn’t cover any auto accident on your property
Additionally, any deliberate act of negligence or criminality isn’t covered by general liability insurance or any other type of insurance.
Other Policies Explained
There are other insurance policies that small business owners can get for their coverage needs.
Workers’ compensation insurance is the best-known insurance for small businesses. It compensates workers if they are injured while working for your business.
Cyber liability insurance is one of the newest insurance policies recommended for businesses dealing with a lot of cyber information. It protects your company in the event of a hack or a data breach.
Business property insurance covers your building and its contents, including furniture, computers, televisions, and telephones. This protects your property in a fire, hurricane, or other natural disaster that damages your business.
Commercial auto insurance is especially important for companies with fleets of cars and trucks. It protects your fleet from damages caused by accidents.
Let Hulett Insurance Work With Your Small Business
As a business owner, you probably wonder which policies are best for your small business. Do you need general liability insurance, other insurance policies, or a combination of all the above? Request a quote from one of our trusted agents today, and let’s discuss your business insurance needs.
