Who Needs General Liability Insurance?

As a business owner, you must take action to protect your operations. One way to protect your business financially is by having general liability insurance. This type of insurance can help provide financial protection for the risks associated with running a business. You may never have to use it, but you will be thankful to have it if you do.

What Is General Liability Insurance?

General liability insurance is a coverage typically included in a business insurance policy. It helps protect a business against third-party bodily injury or property damage claims. If a business does not have general liability insurance, it may have to pay for potentially costly claims out of pocket.

What Does Commercial General Liability Insurance Cover?

General liability insurance typically covers claims that can occur through business operations. These policies generally include coverage for the following types of claims:

• Third-party bodily injury—General liability insurance coverage may help pay for medical costs and legal fees if your business is responsible for third-party bodily injuries.
• Third-party property damage—General liability insurance coverage may help pay replacement fees or repairs if your business damages someone else’s property.
• Reputational harm—General liability insurance may help provide coverage if your business is sued for libel or slander.
• Advertising injury—A general liability insurance policy may help pay for fees related to your business being sued for copyright infringement.

What Types of Businesses Need General Liability Insurance?

Most businesses can benefit from general liability insurance, especially if any of the following statements is true:

The business is open to the public.

• Employees visit, work on or work near clients’ property.
• The business has marketing or advertising collateral.
• The business uses social media for professional reasons.
• The business collaborates with other companies or clients requiring insurance proof.

Is General Liability Insurance Required by Law?

In many jurisdictions, general liability insurance is not explicitly required by law for all businesses. However, there are exceptions where certain businesses or activities might be mandated to carry general liability insurance by local, state or federal regulations. While general liability insurance might not be a legal requirement across the board, it’s still recommended for most businesses due to the potential risks they face.

How Much Is General Liability Insurance?

The cost of general liability insurance is typically based on a risk assessment of a business that may include its industry, claims history and size. Contact Servi-Express to discuss your business insurance needs. We can make coverage recommendations based on your specific operations and provide a policy quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.