Don't let accidents sink your business – get general liability insurance

Don't let accidents sink your business – get general liability insurance

As a business owner, you know that mishaps can occur at any time. 

Whether a customer trips and falls in your store or an employee causes harm at work, these incidents can quickly escalate into a costly legal battle. 

This is where General Liability Insurance comes in. 

In this article, we'll talk about why you need general liability insurance for your business, what it covers, and how to choose the right policy.

What is General Liability Insurance?

General liability insurance covers legal fees, settlements, and other costs associated with accidents on your business property or as a result of your business operations. 

It is also known as Commercial General Liability Insurance (CGL).

Why Do You Need General Liability Insurance?

No matter how careful you are, accidents can and will happen. 

Without general liability insurance, you can be held responsible for any damages or injuries that result from your business operations. 

This can include medical bills, legal fees, and even damages awarded in a lawsuit. 

Having general liability insurance can protect your business from financial ruin in the event of an accident.

What Does General Liability Insurance Cover?

General liability insurance typically covers three types of occurrences: bodily injury and property damage, personal and advertising injury, and medical payments.

Bodily Injury and Property Damage

This insurance covers your company if someone is hurt or their property is damaged due to your business's operations. 

Consider the scenario in which a customer in your store slips, falls, and fractures a bone. 

In that scenario, their medical expenses and any associated legal costs will be covered by their general liability insurance.

Personal and Advertising Injury

This inclusion safeguards your business, assuming you have sued for criticism, defamation, or copyright encroachment. 

For instance, general liability insurance will pay for your legal fees and any damages awarded in a lawsuit if a competitor accuses you of copying their slogan.

Medical Payments

This type of coverage covers medical expenses incurred by someone injured on your business property, regardless of who is at fault. 

For example, if a customer cuts themselves on a piece of broken glass in your store, general liability insurance will cover their medical bills.

How Much General Liability Insurance Do You Need?

The size of your business, your industry, and the risk associated with your operations all influence how much general liability insurance you need. 

It is critical to talk with a protection specialist who can assist you with deciding how much inclusion you want.

How to Choose the Right General Liability Insurance Policy?

Choosing the right general liability insurance policy can be overwhelming. 

Here are some tips to help you make the right decision:

Research Your Industry

There are various risks associated with multiple industries. 

Researching your industry to comprehend the particular risks you face and the kind of coverage you require is essential.

Assess Your Risks

Spend some time analyzing the hazards unique to your company. 

This can include elements like the categories of goods or services you provide, the number of staff members, and the business's location. 

It would help if you also considered any potential risks connected to your business, such as using powerful machinery or toxic materials.

Compare Policies

Once you understand your business's specific risks, it's time to start comparing policies. 

Look for policies that offer the particular type of coverage you need and have appropriate limits for your business. 

It would help if you also considered the policy's cost and the insurance company's reputation.

What Is Not Covered by General Liability Insurance?

It is essential to understand that general liability insurance only covers some things. 

Here are some examples of things that are generally not covered:

Employee injuries

If an employee is injured while on the job, you will need workers' compensation insurance to cover their medical bills and lost wages.

Professional mistakes

If you make a mistake while providing a professional service, you will need professional liability insurance to cover any damages.

Intentional acts

General liability insurance will not cover the damages if you or an employee intentionally harms someone.

The Cost of General Liability Insurance

The cost of general liability insurance depends on various factors, including the size of your business, your industry, and the amount of coverage you need. 

On average, small businesses can expect to pay anywhere from $400 to $1,500 annually for general liability insurance.

How to File a General Liability Insurance Claim?

There are a few steps you should follow to file a general liability insurance claim in the event of an accident:

  • Inform your insurance provider as soon as you can.
  • Give all essential records like doctor's visit expenses or fix gauges.
  • Assist your insurance company with its investigation.
  • Reach an agreement with your insurance company.


Accidents can happen at any time, and if you don't have general liability insurance, they can quickly escalate into expensive legal battles that could cost your company its existence. 

You can safeguard your business from financial ruin in an accident by evaluating your risks and selecting the appropriate policy.