Small businesses often use general liability insurance packages to protect against bodily injury, personal injury, or property damage claims. These risks crop up in the typical course of operations, but they can quickly become too expensive for small businesses to manage. The median cost of a slip and fall accident claim is over $20,000.
Here Are The Qualities of a General Liability Insurance Package
A reputational harm lawsuit could easily run over $50,000, putting a severe dent in the operating budget of many small businesses or even leading to bankruptcy.
What Does a Liability Insurance Package Cover?
Your general liability package coverage is essential to understanding your overall financial health and protection. A general liability policy helps to cover claims such as advertising injury claims that people file if they believe your business defamed another business or person. Also, it may help if there is a case where someone alleges bodily injuries caused by your business. They may state that they slipped. Unfortunately, slip-and-fall claims happen, and hazards on the premises can cause this. If someone suffers an injury at your business, your general liability coverage will cover their medical expenses. Then your coverage will also protect you against copywrite infringement claims when a person accuses you of utilizing someone else’s work or intellectual property without their consent. Property damage is also a common claim. Lastly, reputational harm claims could occur if you publicly say or write something damaging another business’s reputation.
What Is Not Covered by General Liability Insurance?
While general liability insurance covers many possible damages to a business, it does not cover everything. Business-related automobile accidents, employee illness or injury, damage to business property, professional service errors, illegal activities performed by someone employed by your business, or claims exceeding policy limits all fall outside the coverage of general liability policies.
Who Needs General Liability Insurance Coverage?
There is no legal requirement to have this. However, it is a wise investment for small business owners, consultants, and contractors. If you operate under the following conditions, consider acquiring a policy if your business advertises or creates marketing materials. Likewise, you should consider this package if your company works with vendors or clients. It will also help you if your business incorporates social media (personally or professionally). Then, it also will help if your business requires insurance coverage for consideration in obtaining work contracts. This policy will assist you if your business utilizes third-party locations for company activities or employs temporary workers.
How Much Coverage Is Sufficient?
Policy amounts vary and are sometimes customizable to your needs. Most small businesses opt for standard $1 million policies with a $2 million aggregate limit. This policy pays up to $1 million for each individual general liability claim and caps the policy period with a $2 million limit for the totality of claims. The policy period generally lasts for one year. The cost of this type of policy varies depending on your business size, location, and the desired amount of coverage.
About Sine Insurance
At Sine Insurance Group, we are dedicated to providing you with custom-tailored insurance policies to protect your assets. Our comprehensive packages have been expertly crafted to serve St. Louis and the surrounding areas for the past 25 years. For more information about our products, contact us today at (855) 700-0889.