General liability insurance protects your business from financial losses if someone claims your company injured them or damaged their property. It’s critically important for your company to have general liability coverage, but the specifics of your policy will vary based on your industry and your company’s unique risk profile.
Liability insurance for a general contractor will look a lot different from insurance for a retail business. Here’s a look at the various types of general liability insurance you should think about getting for your business.
Core Liability Insurance Coverage
When choosing liability insurance, most companies start with the following key types of coverage.
Bodily Injury Liability
This is one of the most essential kinds of liability coverage for any company. If someone alleges that your company is responsible for a physical injury, then bodily injury liability insurance may protect you from financial loss.
For example, suppose that an employee causes an accident while on the clock. If the injured party sues you, your policy may cover their medical bills and other losses.
Property Damage Liability
This kind of insurance coverage protects you if your business causes damage to a third party’s property. For example, if you’re working on a roof and you drop a tool on a client’s vehicle, your property damage liability insurance would likely cover the damage.
Personal and Advertising Injury Coverage
If a competitor alleges that you caused them non-physical harm, you might face a lawsuit. Claims for advertising injury can arise when a company believes a competitor’s marketing strategy has unfairly caused it to lose business. These are some examples:
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Using a competitor’s copyrighted material in an ad
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Making false claims (like incorrectly stating a competitor failed a health inspection)
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Designing a product’s packaging or labeling to mimic that of a competitor
If a competitor sues you for advertising injury, personal and advertising injury coverage could pay for your legal fees and any damages you’re ordered to pay (up to your policy limit).
Other Types of Liability Coverage You Might Want to Consider
Creating a personalized liability policy can ensure your business is adequately protected. Depending on your needs, you might add the following kinds of coverage:
Cyber Liability Insurance
If your business handles sensitive data, cyber liability insurance is important. If you experience a data leak, this insurance may pay for any resulting losses.
Commercial Auto Insurance
If you have company-owned vehicles, the liability portion of commercial auto insurance may pay for injuries to third parties and property damage.
Professional Liability/Errors and Omissions (E&O)
This type of liability insurance protects you if a client alleges that you performed faulty work. For example, if you own an accounting firm and make an error that causes a client to owe a significant tax penalty, that client may sue you to recover the penalty amount.
If you have a professional liability insurance policy in place, your policy would likely cover the loss. If you don’t, your business may ultimately have to pay the client directly.
Having Trouble Choosing General Liability Insurance?
Selecting the appropriate liability coverage for your company can be a challenge. If you don’t have the right type of liability insurance (or your policy limits are too low), you could suffer devastating financial losses. On the other hand, purchasing too much insurance coverage can drain funds that may be better used elsewhere.
At Hulett Insurance, we aim to help you build a customized insurance policy that includes all of the protection your company needs. As an independent agency, we aren’t affiliated with any single insurance carrier, so you can count on quality, unbiased advice.
If you want to learn more or you’re ready to get started, call us or get in touch online today!
