You may be wondering what Commercial general liability insurance is and if you need it in the first place. Liability insurance is very important in any business and is an important part of your insurance plan. This is because the insurance cover can help settle claims arising from property damage or injuries to your customers in your premises. There are unfortunate instances where your clients can get injured largely because of a fall or slip. Without proper insurance cover, your business can spend a lot of money to settle claims from such accidents.
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What is entailed in commercial general liability insurance?
The main role of a commercial general liability cover is to settle large claims that may arise during the normal operation of your business. Without this insurance cover, you will have to settle these claims with money from your business. Unfortunately, most small businesses do not have the money to do that.
One of the claims that a commercial general liability insurance cover can help settle is bodily injuries that happen within your store. If a customer accidentally slips and falls while at the store, they can sue your business for the damages caused. The good thing is that, with this insurance, you will not have to settle claims yourself but have the cover to settle that.
Secondly, commercial general liability insurance covers property damage as a result of your business operations. For example, if you are involved in a business where your employees work at your client’s home or premises, your business stands the risk of suffering property damage. The property damage liability cover helps cover the repair and replacement costs when your business damages other people’s properties.
Thirdly, commercial general liability insurance can cover reputation harm. In the course of running your business, an employee may say or write something that leads you to being sued for libel. If this happens, the commercial general liability insurance can help cover the legal costs associated with the suit. Generally, slander attracts a high amount of compensation.
Last but not least, having a commercial general liability insurance cover protects your business against claims arising from copyright infringement on the advertisement. For example, if your advertisements feature a video or a photograph that is owned by someone else, you may get sued for using the content without permission.
Why commercial general liability insurance is important
Research has revealed that almost half of all businesses face a liability claim within a decade. These claims are normally because of some slips and falls which causes injuries that lead people to being hospitalized. The costs for such injuries can top over $30,000. And if the claim advances into a lawsuit, you will find that the costs for settlement will increase to up to $80,000. This includes the legal fees for defending and settling the matter. If your business is not well prepared for this, you may be forced out of business.
If you handle large contracts, commercial general liability insurance may be necessary. This is because there are companies that will require you to provide a certificate of insurance before they can award you the contract.
With this, it is important to realize that commercial general liability insurance plays an important role in your business. However, it is important to choose a cover that suits the specific needs of your business so that you can be covered adequately. The best thing to do is to assess the risk level first before determining what kind of liability insurance that you need for your business.
Types of commercial liability insurance
Depending on the type of business that you run, there are many types of commercial liability insurance covers to choose from. The choice you make is dependent upon the nature of the business that you run as well as the risk level that is existent in your business. Therefore, it is advisable to make your choices right when it comes to the choice of commercial liability insurance that is available for your business.
Whether you run a business where customers have to walk into your premises or you make walk-ins to their homes and offices, commercial liability insurance can do you a lot of good. This is especially considering that the cover protects your business against injuries and damages that may be caused by your business activities. For example, a customer may suffer injuries from a fall or slip while in your business premises. On the other hand, if you are involved in a business where your employees move to clients’ offices and homes, the liability insurance may protect your business in case of damages in your client’s home.