General Liability Business Insurance
General liability business insurance stands between you and the serious financial losses that your company could face if you're held responsible in a liability lawsuit. If your business is sued for physical injuries, emotional damages, loss of property or advertising injuries, you could face not only the costs of legal defense, but general and compensatory damages, as well.
Before you purchase a policy, compare quotes from multiple insurance companies. Whether you're looking for a basic general liability business insurance policy, or you're interested in some of the added endorsements that your insurer has to offer, you can find a package that meets your needs. Because general liability business insurance is such a vital part of your risk management program, you should invest some time in evaluating policies before you make your final decision.
General Liability and Risk Management
Risk management involves all of the measures that your commercial entity takes to prevent accidents, oversights or mishaps that could jeopardize your financial status or professional reputation. General liability business insurance is a key component of this plan. Unlike the liability protection that's offered through standard business owners policies, or BOPs, contractor general liability insurance provides a customizable solution to your loss control needs.
Certain factors may increase your chances of being sued or of losing a commercial liability case. If you live in a state where a large percentage of commercial liability cases come out in the plaintiff's favor, your risk of a lawsuit may be higher than average. You may have a higher risk of legal action if you work in an industry where physical injuries are more common, such as manufacturing and assembly. Retail shops with a high volume of customers have a high risk of lawsuits from individuals injured on the premises.
As you talk with different general liability business insurance carriers, ask if they offer a loss control program to reduce your business's risk of a lawsuit. Loss control programs may include on-site safety training for staff, a website tutorial or printed educational materials on risk management. Inquire whether the provider offers 24-hour access for filing claims, and whether the company has a solid history of paying settlements to its customers. These factors could make a big difference when it comes to submitting claims.
General Liability Business Insurance Endorsements
When you're looking for general liability business insurance, you'll hear about the endorsements that are offered to extend your protection. Depending on the nature of your work, your company may benefit from including some of these options in your general liabilities insurance policy. In general, any business can benefit from at least one or two insurance endorsements.
A provider may offer some or all of these additions for its customers' policies. Liquor liabilities insurance protects you against lawsuits from customers who've suffered injuries as a result of being sold alcohol at your establishment. Although this endorsement doesn't often apply to businesses outside of the food service or hospitality industries, owners of bars and restaurants may benefit from this option.
Professional liabilities policies cover your company against mistakes or omissions made while offering professional counseling or advice. Errors and omissions coverage protects contractors against losses sustained by clients due to oversights or mistakes while practicing your trade. These endorsements protect you and your employees in case inaccurate information is given, or a contractor overlooks an aspect of his or her job.
Umbrella plans expand your protection beyond the stated limits of your coverage. If you are found to be at fault in a bodily injury lawsuit, and the plaintiff is awarded significant damages to cover intensive care, rehabilitation or loss of wages, these costs can easily exceed your maximum. You have the option to prevent these losses by purchasing umbrella coverage that will take over where your standard contract leaves off.
General Business Insurance Rates
Whether you run a large or small business, your whole company suffers if you're hit by a customer's lawsuit. You can reduce your rates and your risk of legal actions at the same time by enforcing production standards and safety regulations at your work place. Taking basic safety precautions, like cleaning up spills immediately or organizing storage areas in a secure manner, will help prevent accidents.
The fewer claims you have to file, the lower your general liability business insurance rates will be. You may be able to qualify for a discount if you haven't filed any claims within a certain time frame. Any steps you can take to make your work place safer and more secure will benefit your employees and further your risk management goals. General liability business insurance can protect you in case of legal action, but you can significantly reduce your risks by preventing accidents and omissions from happening in the first place.