General Business Liability Insurance
General business liability insurance may be exactly what you need if you're looking for a policy to protect your business against costly lawsuits. These days, every commercial entity, whether it be an elegant boutique or a machine shop, needs liability coverage to protect its financial assets from the consequences of litigation. An expensive lawsuit can bankrupt a small business; fortunately, protecting your organization is easy and affordable.
When you start your search for general business liability insurance, or general contractor liability coverage, use this website to connect with insurance professionals who have expertise in protecting companies against liability exposures. General business liability insurance is more comprehensive than the liability protection that's often bundled with other forms of commercial insurance, such as property or worker's compensation policies. Ask an expert in the field to help you choose a policy that's tailored to the requirements of your company.
Definition of Business Liability
A business liability is an obligation that your company owes for damages to person or property. General business liability insurance pays benefits to fulfill these obligations, either through settlements or awards to a plaintiff. The liabilities covered under most general business policies include bodily injury, personal injury, loss or damage of property and advertising injury. The general definition of advertising injury involves harm done to an individual due to public remarks or advertisements. A breach of privacy and a violation copyright may also be considered commercial liabilities.
Your state's laws determine how liabilities are defined and resolved in commercial cases. In some states, the majority of court cases are resolved in the plaintiff's favor. A knowledgeable broker or insurance company representative can help you determine whether this poses an additional risk for your organization, and whether you should increase your coverage as a result.
The general state of your work environment can increase or decrease your exposure to liabilities. If your grounds and building are well maintained, and your staff is trained in common safety precautions, you will have a lower risk of accidents. This means that you'll have a lower risk of being obligated to pay for medical bills or loss of wages to an injured party. Many accidents are easily prevented by taking general precautions such as replacing old light bulbs, repairing cracks in your sidewalks or mopping up spilled liquids immediately.
Limitations of General Business Insurance
Although general business liability insurance is a comprehensive approach to protecting your company against the costs of litigation, a general plan may not meet all of your business's needs. Your agent or broker can help you determine whether you should add any endorsements, or extra options, to your coverage. You can also choose to expand your coverage beyond the maximum limit established in your policy to give yourself extra protection against severe financial losses. This option is commonly referred to as an umbrella plan.
Employment practices coverage, for example, protects you against lawsuits from disgruntled current or former employees who believe that they were discriminated against, harassed, or otherwise treated unfairly. Liquor liabilities policies pay benefits for damages related to the use of liquor in a restaurant, bar or other public establishment. If your group manufactures a product, product insurance covers you against injuries or losses that occur due to the use of one of your products.
General business liability insurance does not typically include protection against lawsuits due to errors or omissions made by a professional while giving counseling or advice. Accountants, counselors, therapists, architects and other highly trained professionals who give advice as part of their practice require professional liability insurance. If you earn a living providing solutions, you risk being sued by a client who believes you misrepresented your knowledge, neglected to provide important information or made an error in your advice.
General Business Liability Insurance Rates
The cost of your coverage will vary depending on how large your organization is, the type of service or product you provide and the risks you expose yourself to as part of your daily routines. Rates may be higher for businesses that involve a high potential for injuries, such as machine shops. Your rates for general business liability insurance may be partly determined by the length of time that you've been in operation, your financial health and your history of filing claims in the past.
When you compare quotes on general business liability insurance, ask company representatives or brokers about any factors that may lower your rates or reduce your premiums. Agreeing to pay a higher deductible is one common way to lower your scheduled payments. Maintaining a record of filing few or no claims will often reduce your rates. Take your time comparing the coverage and discounts offered by a number of providers before you make a decision on this important component of your risk management plan.