General Liability Insurance
If you are a business owner or independent contractor, having comprehensive liability coverage is a must. General liability insurance is a multipurpose policy that will protect you in a number of key areas where you might be particularly vulnerable as an entrepreneur.
Why Liability Coverage Is Essential for Business Owners
Owning and operating a business can be fraught with challenges, so it’s important to have sensible risk management strategies in place. Your number one defense against the many perils associated with business ownership is being properly insured. Insurance can allow you to walk away without a scratch from a situation that might otherwise cause financial ruin.
Liability coverage is particularly important because it can protect you on several fronts. If you are faced with a lawsuit related to an injury on your premises, damage to a client’s property, or allegations of libel or false advertising, then this is the type of insurance you need in your corner.
What Exactly Does General Liability Insurance Cover?
This type of insurance includes coverage for legal expenses and damages related to the following:
- Product Liability: Bodily injury or property damage that was caused by a product you sell or manufacture
- Bodily Injury: Injuries to a client or customer that may have been caused by your operations
- Tenant Liability: Damage to property that you rent or occupy for business purposes
- Advertising Injury: Allegations of libel, false advertising, defamation, or slander
What Type of Businesses Need General Liability Coverage?
Ideally, absolutely every business, no matter how small, should have this type of insurance. However, you are particularly vulnerable if your business falls into any of the following categories:
- Has a location that is accessible to the general public
- Works directly with customers or clients
- Manages client-owned property or assets
- Rents or owns commercial space
Should Independent Contractors Invest in General Liability Coverage?
Just like any small business owner, an independent contractor can be held liable for all the same injuries and damages noted above. Entrepreneurs who are running their own show by themselves often make the mistake of thinking they don’t need to be insured. We have too often witnessed independent contractors face significant financial hardship and even bankruptcy because they were inadequately insured.
How Much Does Liability Insurance Cost?
There are several factors that come into play when establishing an insurance quote. The type of business you are in, where it’s located, and your overall claims history will be taken into consideration when establishing your premium.
The right amount of coverage depends on your risk exposure and business needs. You want to be protected against a potential lawsuit, without investing in more insurance than you realistically need for the size and scope of your business. Finding an experienced and trustworthy insurance brokerage is key to getting an affordable and comprehensive insurance plan to meet your needs.
If you’re interested in working with a reputable insurance agency to get the best liability coverage available, contact us today at ISU Armac. Our insurance experts can help you to tailor a package that will protect your business and its assets.